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European Medical Cannabis Ecosystem Published by the First Wednesdays network, with insights provided in partnership with Hanway Associates and Invest In Denmark (part of the Danish Ministry of Foreign Affairs). PUBLISHED NOVEMBER 2020 Contents Production Contributors Introduction 3 Georgia Glick Michael Prytz Laurence Busch Hansen Derek Light Inclusion Criteria 5 Pierre-Yves Gallety Dr Marco Ternelli Elisabetta Calabritto Marion Zammit Alastair Moore José Antonio de la Puente European Medical Cannabis Ecosystem 7 Jakob Sons Insights Dr Verónica Codesido Sampedro Trends and Insights 17 Lily Temperton Boris Baňas Kailey Jamieson Nethaji Gallage Charlotte Bowyer Dr. Steve Hajioff Opinion Leaders – What Lies Ahead 36 Tom McDonald Dr Saoirse O’Sullivan Franjo Grotenhermen Nick Pateras Medical Cannabis in Denmark 39 Pete Patterson First Wednesdays European Medical Cannabis Ecosystem 2 Introduction What is so special about the European Market projections and financial analysts We are already seeing signs that the Underpinning all this innovation is research. medical cannabis ecosystem is that it is point to the large population of Europe and sector is being taken more seriously by The Netherlands is home to approximately 30% talk about how demand will surpass all of Europe’s active cannabis and cannabinoid uniquely European. regulators and corporates alike. expectations in the years to come. But how clinical and Germany home to another 15% It has developed its own regional outlook does a nascent market struggling to find its State-supported cannabis startups and trials, with the UK following closely with 20% for how it wants to regulate cannabis and footing become the behemoth it is expected the appearance of more mainstream Whatever your thoughts about the market, implement access programmes, and in this to be one day? We decided to look under the pharmaceutical companies on the scene are the right foundations are being laid for a very process has developed its own entrepreneurial hood of some of the most exciting companies, two indications that this is happening. interesting journey over the coming years. flair. markets and trends to find out where the real potential lies. Two European states, Denmark and Greece, A mix of socialised healthcare, a which have recently embraced the medical pharmaceutical heritage, and being later to the The promise of foreign investment, job cannabis sector have already attracted Alastair Moore party than the US and Canada has created a creation and economic growth is alluring, proposed foreign investments of more than CO-FOUNDER, HANWAY ASSOCIATES strict medical approach to cannabis medicines but the journey towards a sustainable and €610 million according to recent reports. AND FIRST WEDNESDAYS – one that is (mostly) with the grain of the commercially profitable sector is a long medical establishment, not against it. one, and Europe is just at the beginning of From Copenhagen to Berlin, life science this journey. Without companies that tackle start-ups jostle for capital and new specialist Compare two investor decks from both sides regulators’ concerns around black market cannabis investment funds in Stockholm and of the Atlantic and you can quickly see the diversion, the lack of patient data, or doctors’ Paris stoke investor interest in the sector. differences in how we talk about cannabis as a unfamiliarity and cautiousness in prescribing medicine, how it should be controlled and the a medicine that has typically been consumed UK financial regulators have announced that regional-specific concerns its proponents need as a combustible, there will be no real long- British-based medical cannabis businesses to address. term growth in the sector. have a compliant path to the public markets in London, while Scandinavian stock The European medical cannabis ecosystem Companies solving these problems already exchanges signal they are open for business. is maturing quickly as experienced founders exist, and their presence is promising. Patient and investors move into the sector and shape data apps, medical devices, formulation Competition in crowded markets such as not only the discourse but also the value chain technologies and plant R&D are propelling the Germany pushes competitors to innovate around it. It is in this context that we are very sector towards its ambitious goals. The sector with their supply chains, breaking established excited to bring the first European medical is truly aspirational and full of problem solvers, monopolies; meanwhile, Spain, a world leader cannabis ecosystem map to our network. giving us great faith in its chances of success. in morphine production, dips its toes in the arena through traditional pharma routes. First Wednesdays European Medical Cannabis Ecosystem 3 Mapping the Ecosystem This section has been produced in collaboration with First Wednesdays. First Wednesdays is a network of entrepreneurs and investors in the European cannabis sector. FW members benefit from news, insights, matchmaking and business support. Inclusion Criteria — General INCLUSION CRITERIA → This list has been compiled primarily from → Vertically integrated companies active the First Wednesdays member database in multiple segments have been listed in and publicly available information the segment they are best known for. alongside targeted interviews with non- → In addition to these general members. requirements, companies must also → The ecosystem features the top 150 adhere to the relevant value-chain companies which are currently active in the specific requirements set out on page 6. legal, European medical cannabis market → Dispensing has not been included on the based on the following criteria. ecosystem map as this role is typically → We have only featured companies who undertaken by non-cannabis specific have headquarters or an important hub community pharmacies. Prescribing and in Europe, or otherwise have a key role in dispensing in Europe is discussed on supplying the market. page 18. First Wednesdays European Medical Cannabis Ecosystem 5 Inclusion Criteria — Value Chain Step-Specific 01. GENETICS & 02. CULTIVATION 03. TESTING 04. RESEARCH 05. EXTRACTION / SEED BANKS PURIFICATION Commercial R&D → Provided seeds or genetics → Cultivating in Europe for medical → Hold an EU-GMP certification → Primarily focused on → Active R&D into agritech / to at least one company that purposes with required licenses cannabinoid extraction for → Must have ISO/IEC 17025 growing conditions, new is active in the European and/or awarded a cultivation medical purposes → Must have all the relevant product development or medical cannabis industry tender by a national authority licences medical efficacy → Providing genetics as → Already have seeds in the ground → Not a genetics company a service rather than → Contract cultivation for production an internal breeding of licensed pharmaceuticals has Research & Academic Groups programme not been included → European institution championing or actively → We have not included facilities researching medical cannabis under construction 06. FORMULATION / 07. BRANDED MEDICINES 08. TECHNOLOGY 09. DISTRIBUTION MANUFACTURE → Hold the required licenses and → Duplications from value chain → Developer of specialised → Distributing a medical EU-GMP certification segments permitted equipment, software, or cannabis product that medical devices for the → Ongoing manufacturing of → Must have sold branded requires a prescription to at medical cannabis market medical cannabis products or products to patients in least one European market APIs / active substances Europe → Hold required authorisations → Hold an EU GDP certificate and certifications → Producers of unlicensed → We have included the and WDA/WDL cannabis medicines that company that is listed as → Unlicensed cannabis manufacture and distribute owing the product (ie. not the companies that manufacture are listed as a manufacturer company that white-labelled) and distribute are listed as a if they formulate their own → We have included the parent distributor if they primarily medical cannabis products company or most relevant distribute other companies’ sub-division products First Wednesdays European Medical Cannabis Ecosystem 6 06. Formulation & Manufacture European Medical 09 Cannabis 08 Ecosystem 07. Branded Medicines 06 05 01. Genetics & Seeds Banks 07 08. Technology 02. Cultivation 03 04 04. Research 09. Distribution 05. Extraction & Purification 03. Testing 02 01 First Wednesdays European Medical Cannabis Ecosystem 7 01. Genetics & Seed Banks HANWAY INSIGHTS → There are currently a limited number of European companies producing specialised seeds and genetics for the European medical cannabis market. → The majority of seeds are supplied by companies geared towards grey and recreational markets. → The need for reliable genetics and increasing R&D in this field will drive development of cultivar catalogues tailored for medical use. → Specifically we expect to see improved stability become a key focus alongside bespoke cannabinoid and terpene profiles. → Until this area of the market is fully developed, companies are likely to continue to source from grey market seed suppliers and licensed operators in Canada. If you require support building your supply chain, contact us here. 01 First Wednesdays European Medical Cannabis Ecosystem 8 02. Cultivation HANWAY INSIGHTS → European medical cannabis cultivation is undertaken by a number of operators across several countries. While many active operators are based in Portugal