Medical Cannabis Emerges as Top Beneficiary in Recent German Adult-Use Legalization

Following Germany's recent move towards adult-use cannabis legalization, industry insiders anticipate the most significant winner to be the country's flourishing medical cannabis market. The regulatory changes set to accompany this development are poised to simplify the medical cannabis prescription process, offering notable advantages for both healthcare professionals and patients.

Alfredo Pascual, Executive Director at Seed Innovations, highlighted to MJBizDaily the pivotal shift: “Medical cannabis in Germany will no longer require a narcotic prescription form; standard prescriptions will be sufficient. That simplifies things for doctors, but also for the supply chain.”

This regulatory adjustment is expected to streamline the prescription process, making it more accessible for patients. Pascual drew comparisons with other countries, noting, “When comparing with Israel, the German medical cannabis market still has ample room for growth.”

The recent shift toward what Pascual termed “quasi legalization” is projected to catalyze further expansion in the medical cannabis market. However, industry experts remain curious about the economic dynamics influenced by the concurrent reforms in medical regulations, home cultivation, and sales for club members.

Pascual pointed out the current accessibility of prescriptions, stating, “It’s already relatively straightforward to get a prescription – especially if paying for the medicine out of pocket, with retail prices for medical cannabis already at about the same level or even below the illicit-market prices. And getting a cannabis prescription is about to become even easier.”

One potential consequence of the new legislation is an increase in the importation of medical cannabis to Germany, at least in the short term. The country currently permits only a limited number of companies to cultivate medical cannabis domestically, leading to a reliance on imports to meet demand.

Stephen Murphy, Managing Director at Prohibition Partners, emphasized the importance of monitoring domestic cultivation regulations. Changes in this area could impact not only German businesses dependent on imports but also international cultivators eyeing Germany as a key market for expansion.

In 2022, Germany imported approximately 25,000 kilograms of cannabis for medical or scientific purposes, marking a 19% increase from the previous year. The country's robust medical cannabis market is further underscored by insurance reimbursements for medical cannabinoid products, reaching around 50.9 million euros ($55.6 million) in the January-March 2023 quarter.

Germany's reimbursement figures, impressive in their own right, do not encompass out-of-pocket prescription sales, suggesting that the actual size of the German marijuana industry is even more substantial. By comparison, Canada's regulated market recorded medical cannabis sales of 98 million Canadian dollars ($72 million) in the same period, according to Statistics Canada data. As Germany navigates the evolving landscape of cannabis legalization, medical cannabis stands out as a significant beneficiary, with potential implications for both domestic and international stakeholders.