Having made its mark in the European nations of Denmark, Italy, Portugal and UK, the Canadian cannabis giant is stepping up its game.
Edmonton: Marijuana giant Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) (Frankfurt: 21P; WKN: A1C4WM) has started selling cannabis (cannabidiol or CBD) oils to German pharmaceuticals earlier this week, after clearing all approvals from the Canadian and German regulatory authorities.
With its announcement on Monday, Aurora gained a 2.84% jump in the stock market, trading near $8 a share.
The company’s Pedanios 5/1 drops was the first extract-derived oil product that complies with the German monograph for in-pharmacy preparation.
Aurora has come to be known as the market leader in Germany’s medical cannabis domain. In fact, it has been supplying dried cannabis flower to the German market since December 2015 through Aurora Deutschland(formerly Pedanios), and with Canadian-grown Aurora products since September 2017.
While Aurora has already established itself as a trusted supplier among prescribing physicians, pharmacies and the German patients, Aurora is currently perfectly positioned to become a brand leader in the European derivatives market.
“Having established early mover advantage in selling cannabis oils in Germany, we are exceptionally positioned to extend our market leadership and accelerate growth of our European operations,”Chief Global Business Development Officer Neil Belot said.
“As our global production capacity continues to ramp up, we are able to strategically allocate more product from our EU GMP certified cultivation facilities to this higher margin market that continues to be significantly undersupplied,” he added, while talking about the rapidly growing cannabis market in Europe.
German market – Had not been the easiest
It is imperative to note that the German legal cannabis market is still a little blurry and somewhat behind Canada and other countries where it marijuana has been legalized. The main reason for that is that there are, incidentally, very few ailments in Germany that can be treated with cannabis.
But the good news for Aurora is that concentrates are becoming more popular by the day, creating a booming market in this country. This is exactly where Aurora saw its opportunity in Germany before they decided to invest.
Recent moves in Europe
Back in February, Aurora Cannabis made a big move in the United Kingdom with its completion of its first commercial export of cannabis oil in that European island nation. UK authorities recently granted Aurora approval for its first shipment of medical cannabis in November.
Apart from this, Aurora had made a big acquisition in Portugal recently, with purchase of 51% stake in Gaia Pharma. Besides, the cannabis producer also has facilities in neighboring Denmark and Italy. The company is definitely expected to be a formidable presence in the continent as the European market opens up.
…And in the US
In September last year, news of Coca-Cola being in talks with Aurora to develop beverages infused with cannabidiol (CBD), a non-psychoactive compound found in the resinous flowers of cannabis, was doing the rounds. However, the deal did not materialize.
But this was just the beginning.
In October, with the legalization of recreational marijuana in Canada, Aurora went public on the New York Stock Exchange. Since then, the cannabis producer has been on a global expansion.
In the wake of the Hemp Farming Act of 2018 that legalized hemp as an ordinary agricultural commodity with its removal from the list of controlled substances, on January 14 this year Aurora declared its plans to produce hemp-derived CBD for the US market in the next few months.
Briefly about Aurora
Headquartered in Edmonton, Canada, Aurora Cannabis produces at least 500,000 kilos yearly, making it the leading and the largest cannabis company in the world. It sells and operates in 23 different countries in five continents across the globe.