New law allows Demecan to grow more cannabis

The Saxon cannabis producer Demecan is allowed to cultivate unlimited amounts of medicinal cannabis under the new Cannabis Act. With the permit, Demecan can now increase its production capacity by an annual yield of two tons and fully utilize the existing production capacities in Ebersbach, the company announced. According to a spokesperson, the two Canadian companies Aphria RX and Aurora with production facilities in Schleswig-Holstein and Saxony-Anhalt are also permitted to cultivate medicinal cannabis. However, Demecan is "the first German company to receive a cultivation permit for medicinal cannabis under the new Cannabis Act".

Production restrictions no longer apply

The three companies had won a corresponding tender from the Federal Institute for Drugs and Medical Devices (BfArM) in 2019. However, under the old regulation, only a certain amount of cannabis could be cultivated. In total, the tender stipulated that the three companies would produce a good ten tons over four years. In addition, the cannabis grown in Germany could only be sold to pharmacies via the state cannabis agency. With the new law, companies will now be spared this intermediate step.

According to Demecan, the approval is "crucial to meet the growing demand for medical cannabis and to turn the tide in supply by shifting the focus from imports to more domestic production". "Our goal is to further increase production and thus improve the security of supply, because unfortunately there are currently many bottlenecks in patient care," said Adrian Fischer, one of the managing directors.

Sales growth since April 2024

The company also announced that it has achieved strong sales growth since April 2024. "The strong increase in demand is reflected in our good turnover and shows that we are on the right track," said Philipp Goebel, Managing Director responsible for sales. The new cultivation permit not only enables Demecan to meet the growing demand, but also to further develop the company in the long term.

Since 2017, patients have been able to obtain a regular prescription for cannabis for medical purposes from their doctor. According to Demecan, the partial legalization of cannabis in April of this year has also significantly stimulated the market for medicinal cannabis.