Flora Growth Corporation (NASDAQ: FLGC) announced Wednesday that it has signed an agreement with Curaleaf Holdings (TSX: CURA) to sell medical cannabis products in Germany, where the company expanded its market earlier this year.
The agreement will allow Flora to import Curaleaf's medical strains through its EU-GMP certified facility, according to a company news release.
“We are looking forward to partnering with Curaleaf to bring their premium cannabis products to the German market,” Clifford Starke, chairman and CEO of Flora Growth, said in a statement.
Medical cannabis sales in Germany are expected to reach $450 million in 2024, and the legal market will reach $4.6 billion by 2034, according to data from Prohibition Partners and Niche Research cited by Flora. There is a possibility.
Separately, Flora is starting parallel import operations in Germany and the European Union to offer medicines “at competitive prices.” The company has named Manfred Ziegler, former managing director of CC Pharma, to head the new division.
“Our vision is to become the leader in the European pharmaceutical and medical cannabis market,” Mr. Starke said. “Our current access to Germany's extensive distribution network for pharmaceutical products represents the perfect platform to start a PI business.”
Germany's parallel import market (including exports) is nearly $4 billion, with 47% of exports to the EU coming from Germany, according to data from the European Affordable Medicines Association cited by the company.
Flora previously said the company plans to focus on Germany after acquiring TruHC in April, giving it EU-GMP certified production capacity.
The move comes as multilateral carrier Curaleaf (TSX:CURA) (OTCQX:CURLF) increasingly invests overseas, particularly when it comes to building brand awareness and driving prescriptions in Europe. It was done.
CEO Matt Dahlin told investors in May that German medical cannabis patient growth has been stronger than expected since reforms took effect, but other industry players have tempered expectations for a market already in its infancy. He said he is doing so. The company predicted international revenue projections would reach $100 million in 2024.
Flora's second-quarter revenue was down 27% year over year, primarily due to poor performance at the JustCBD brand, but the company has been focused on expansion in Europe to fuel future growth.
