Althea Group Receives Approval for Entry into German Market

Althea considers the receival of these licenses to be a significant milestone that will see the company, "become the first commercial supplier of Australian made medicinal cannabis extract products sold and distributed in the German market to date."

The Melbourne-based medicinal cannabis manufacturer, Althea Group (ASX: AGH), took another step towards cracking the highly lucrative German market this week, after regulatory authorities granted the company the necessary licenses needed for the sale and distribution of its products.

The company originally expected the licenses to be granted significantly sooner, however the arrival of the COVID-19 pandemic delayed Althea's initial approval timeline considerably.

We are very pleased that all relevant licenses have been granted. This will now allow Althea to focus on the sale and distribution of our products in the German market through Nimbus. We expect to see rapid uptake given Althea's reputation and Nimbus' established market presence in Germany.Althea Group CEO, Joshua Fegan

Althea considers the receival of these licenses to be a significant milestone that will see the company, "become the first commercial supplier of Australian made medicinal cannabis extract products sold and distributed in the German market to date."

And it's not hard to see why, as current estimates suggest that Germany—which has a population of roughly 83 million—could have a medicinal cannabis market worth approximately €1.5 billion by 2025.

The announcement arrives approximately twelve months after Althea signed on to a memorandum of understanding with German medical distributor Nimbus Health GmbH, before subsequently entering into a supply agreement with the company in May 2020.

"It has been amazing to see how Althea and our team have worked closely together to achieve this milestone," Nimbus CEO Linus Maximilian Weber said.

"We are very pleased that Nimbus is the first distributor bringing Australian made extracts to patients in Germany and will further increase the value of cannabis-based medicines in country."

Now that Althea has gained regulatory approval from the Federal Institute for Drugs and Medical Devices (BfArM), the company will apply for the necessary permits needed to import its products into the German market.

Althea currently expects to see the first shipment of 2,000 product units supplied to Nimbus for distribution before the end of December 2020.

Additionally, Nimbus have confirmed that they intend to utilize the same commercial strategy that has been successfully implemented by Althea in the UK and Australian market, which will include the launch of a localised version of the company's Althea Concierge digital platform and a dedicated local sales team.

Under the terms of the agreement, Althea will also retain ownership of all anonymous patient data collected via the Althea Concierge platform, while also receiving a 50% profit on the net profit of sales made in the German market.

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Hugo Gray
Hugo Gray

Hugo Gray is a Melbourne-based journalist with a body of work that covers a diverse range of topics, including immigration law, sex technology, and now the rapidly expanding cannabis industry.