In contrast to the North American cannabis markets, we believe that the European industry will develop to represent a highly regulated pharmaceutical-like market. Because the majority of global capital continues to be deployed towards cultivation assets, dry flower will shift to become a raw input as opposed to a format of consumption. For this reason, Materia’s strategy is to conduct value-add downstream activities as opposed to cultivation; our core focuses will include extraction, processing and distribution.
Medical Cannabis - Our Point of View
Materia seeks to be the leader in cannabis extraction for European markets. Our goal is to provide pure, tested and high-efficacy extract medicines for patients. Materia has built a team of experts with extensive experience in the pharmaceutical industry in order to provide products that patients can trust.
As the global supply of cannabis increases, Materia will import low-cost biomass from its international partners. Materia has secured supply agreements with various international partners.
The key to accessing the burgeoning European market is having European Union Good Manufacturing Practice (EU-GMP) accreditation. A requirement that all medicinal products come from an EU-GMP accredited facility is one of many regulatory requirements the EU has stipulated. Materia’s Malta facility is on track to be one of the first EU-GMP certified facilities, providing an early mover advantage to access the European market.
Materia is in the process of retrofitting an existing facility in Malta, which will ultimately be a state-of-the-art production hub used to process and formulate cannabis products. Materia will source low cost biomass from around the globe and convert it into EU-GMP certified flower or oils to be distributed throughout the European markets.
The Danish medical cannabis system is seen by many as a model framework, balancing patient access with an emphasis on robust, applicable research. The current scheme has been in place since January 1 2018, with a small, but fast growing number of patients. Materia has a partnership with one of the few companies licensed to date to import and distribute its products across the country.
Germany legalized medical cannabis in March 2017 and today is the largest medical cannabis market in Europe. With a potential patient base of over 1 million patients, it stands to grow substantially over the next several years. Today the market continues to experience supply shortages amidst a fast-growing acceptance amongst physicians. Materia is targeting this market as its primary sales channel and will leverage its in-market presence to develop a best practices framework for physician engagement and pharmacy support.
The United Kingdom implemented its medical cannabis law in November 2018, signifying the first time citizens could obtain cannabis-based products for medical purposes. As physicians become acquainted with medical cannabis’ benefits and policymakers discuss how to expand patient access, the UK market holds high future potential. Materia has the option to partner with a manufacturing specials (MS) licence holder to import medical cannabis into the country.
The European Economic Area is seeing a shift in perspectives towards cannabis use, especially on the topic of medical cannabis. The Materia team is constantly keeping a pulse on the status of jurisdictions, both from an opportunity to source low cost biomass and also to enhance its variety of distribution channels.