Little Green Pharma (ASX: LGP) has welcomed historic move of the German Bundestag to vote to legalise cannabis by removing it from the Narcotics List from 1 April 2024. This represents the most significant legislative change in global cannabis markets since Canada legalised cannabis in 2018.
Germany is currently the largest medicinal cannabis market in Europe. The change will make it the largest federally legal cannabis market globally and is anticipated to result in an increase in the number of patients and consumers by multiples while catalysing similar changes across Europe.
The change allows for the establishment of not-for-profit cannabis clubs, limited home cultivation and possession of personal use quantities. Critically, the decision removes cannabis from the Narcotics List, meaning the existing medical access pathway will be substantially improved through the removal of prescribed conditions, narcotic reporting, and pharmacy stockholding limitations; and the easing of the rules around telehealth services, e-scripts, and direct delivery to patients.
The new laws present LGP with a unique opportunity given its well-established partnerships with multiple German distributors, large bank of cannabis genetics, and ownership of the largest and most advanced EU GMP recognised medicinal cannabis facility in Europe strategically located just two hours from the German border.
Ongoing EU GMP standards for medicinal cannabis will also continue to constrain North American non-GMP supplier participation in the market.
