Tilray provides update on German cannabis legislation

Published: 29-Feb-2024

European Union medical cannabis market now projected to become $45bn

Tilray Brands, Inc., a global leader in cannabis research, cultivation, production and distribution, today provides an update on Germany’s milestone cannabis legalisation and what it means for the future of cannabis in Europe and for Tilray.

As a global company specialising in the legalised medical and adult-use cannabis markets, Tilray can utilise the new German drug policy to its advantage.

Irwin D. Simon, Tilray Brands’ Chairman and CEO, stated: “We see tremendous growth opportunities stemming from Germany’s landmark cannabis policy update. The new German medical market opportunity equates to about $3bn while the European opportunity, could represent a powerful growth market consisting of a potential $45bn medical market alone.”

The public perception regarding the new cannabis reforms in Germany is mainly centred around cultivation for personal use and the establishment of cannabis social clubs. 

However, what is of greater importance for Tilray are the new opportunities, which flow from the new German Medical Cannabis Act. One fundamental change is the removal of cannabis from the list of prohibited substances in the Narcotics Act. 

This de-scheduling change is expected to significantly expand the medicinal cannabis market in Germany as it would allow for doctors to prescribe medical cannabis with ease to patients. 

This would allow for greater accessibility to patients and potentially allow for broader health insurance coverage.

Further, the German Medical Cannabis Act provides for the abolishment of the tender process for in-country cultivation of medicinal cannabis and replaces it with a licensing scheme. 

Today, only a small portion of the medical cannabis serving German patients is produced in Germany, and what may be cultivated is set forth in the tender. 

As the operator of one of only three in-country cultivation facilities located in Germany today, these legislative changes would allow Tilray to better meet patient needs by expanding its medical cannabis product offerings, which in turn would significantly increase Tilray’s cannabis production in Germany by approximately 5x and more than double its revenue opportunity. 

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