April has been a monumental month for cannabis worldwide, with the DEA endorsing rescheduling and a surge in enrolment in Germany after legalisation. Other interesting news from last month include:
- Australian regulator pledges to increase testing on imported products.
- Argentina wants to tighten patient registry conditions.
- Permits for over 2,500ha already awarded this year in Morocco.
- New Zealand medical market grows 150% year on year.
- Japan CBD market estimated at $154 million in 2023.
- Chronic cannabis use does not effect motivation, study finds.
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Online Webinar: Opportunities for the Uruguayan industry
[Note: the session was conducted in Spanish] Rewatch our webinar in collaboration with Uruguayan government agencies. We cover the more recent regulatory and market news in the medicinal and CBD international markets and the main export opportunities of Uruguayan companies.
Summary
🏛️ Regulation
Worldwide regulatory updates signal shifts in cannabis policy: US DEA proposes rescheduling as Florida eyes recreational legalisation. Australia prioritises quality standards for imports, while Argentina reviews its medicinal cannabis registry amidst criticisms.
💼 Market
Medical cannabis enrolment surges in Germany after legalisation. Hemp product sales rise in the USA. Canada‘s exports outpace domestic sales. Positive market signals in New Zealand, Japan and Morocco coexist with consolidation in Israel, Uruguay and other markets.
🔬Science
Canadian research challenges the ‘lazy stoner’ stereotype, while company-sponsored studies explore the efficacy of cannabis for a diversity of conditions.
📊 Infographic
Uruguayan export data shows that over $25 million have been exported in the last few years, mostly CBD and THC flowers. Uruguay is diversifying the destination of its exports as well as increasing the product types that can be supplied.
🇺🇸 DEA has officially proposed rescheduling cannabis from Schedule I to Schedule III, the most significant policy change since 1970, which could streamline research, establish FDA regulation, and have economic ramifications by providing tax benefits and prompting states to reconsider policies.
- New FDA Commissioner stated that hemp-derived CBD is not safe enough to be sold as a dietary supplement, urging Congress to create a new regulatory pathway for CBD.
- Florida will vote on a ballot measure to legalise recreational cannabis during the upcoming general election in November, Supreme Court has approved.
- Nearly 15% of California cannabis businesses are in default of their tax obligations, amounting to a combined amount of default of $243.5 million.
- State officials in New Jersey seek to support medical cannabis market over dropping patient enrollment following recreational legalisation.
- Southern States are advancing hemp regulations, with Georgia granting greater oversight and enforcement to its Department of Agriculture, and South Carolina including hemp-derived products in its medical cannabis bill regulations.
- Minnesota officials are expected to expunge around 66,000 convictions.
🇩🇪 In Germany, the Cannabis Law has entered into force, with an immediate effect of online platforms advertising cannabis prescriptions without a medical consultation, and cannabis prisoners being released throughout the country:
- A draft regulation suggests that model projects for commercial cannabis distribution could be implemented without the need for a new law, but rather making use of the R&D clauses of the existing Cannabis Act, under the purview of the Agricultural and Food regulator.
- There are criticisms regarding the ill-effects that new regulations could have on medical patients by establishing new no-consumption zones, leading to shortages of certain products or fears that medical professionals will mistrust cannabis treatment.
- However, proposed changes to the Cannabis Law aim to prevent commercialisation by cannabis clubs by limiting clubs from sharing locations or hiring the same commercial providers. The industry criticises the planned tightening of the law claiming it supports organized crime.
- Opponents of legalisation are promoting initiatives to limit the impact of legalisation:National railways have implemented a prohibition on consumption at train stations.Right-wing politicians are criticising easy access to cannabis prescriptions.Hessen is considering cannabis prohibition zones following those in Bavaria, leading to debates regarding double standards in relation to alcohol and cannabis consumption.
🇦🇺 In Australia, the Therapeutics Goods Administration (TGA) has reiterated that imported medicinal cannabis products must meet quality standards to be supplied to Australian patients must meet quality standards, answering the calls by domestic producers over lack of testing on imported products.
- However, companies emphasise the priority of providing high-quality medicinal cannabis meeting Australian standards, even through imports, while rejecting protectionism.
- Cannabis prescribing in Australia described as the ‘Wild West of medicine‘ in a study due to conflicts of interest of vertically integrated clinics owned by suppliers. Court proceedings initiated against Montu and its online clinic Alternaleaf over alleged unlawful advertising of medicinal cannabis. Rugby team sponsored by the company covers up advertisement in official matches as it is being monitored by the TGA.
🇬🇧 In the UK, the first two safety approvals for Novel Foods applications have been granted to Cannaray and Pureis, allowing them to use CBD in supplements, beverages, and confectionery.
- Campaign launched in the UK to support the rights of patients prescribed medical cannabis over discrimination and negative encounters with police forces.
- Changes to hemp licensing rules in the UK make it easier for farmers to plan rotations by increasing license duration to six years.
- 🏴 Government advocates for drug decriminalisation in an independent Scotland.
- 🇯🇪Jersey police chief warns of illegal market in medicinal cannabis and calls for tighter regulation, after government audit finds over 4,000 patients get prescriptions in the island.
🇦🇷 Argentinian government will review the registry of medicinal cannabis users due to alleged irregularities in the approval process, with 90,000 requests granted on the basis of diagnoses not based on scientific evidence according to the current government.
- There is criticism that the cannabis industry is being hindered by ideological opposition of a conservative government, seeking to restrict conditions .
- Amidst public sector cuts, government confirmed that the Cannabis Regulatory Agency will continue to exist under the Ministry of Economy.
- National Seed Institute (INASE) has suspended new registrations for cannabis operators during six months, as it seeks to intensify controls on cannabis licensees.
🇨🇦 In Canada, Prime Minister Trudeau has dismissed concerns about cannabis legalisation violating international treaties.
- However, the government’s 2024 budget does not provide excise-tax relief for the legal cannabis industry despite recent recommendations advocating for tax reform.
- Ontario Cannabis Store (OCS) reports a decline in high-THC products, with some products being re-labelled with lower THC after its testing program began.
🇪🇺 A revised guideline on GACP for herbal starting materials has been published for comments, seeking to clarify the overlap with GMP which might sway regulators’ stance on ‘GMP-washing’.
- European police arrested nine suspects and seized millions of euros over JuicyFields Ponzi scheme, which duped over 180,000 investors worldwide with over €650 million.
🇵🇹 In Portugal, pressure to liberalise domestic market is increasing. Unlocking the internal market could be the key to sustain Portugal’s competitive advantage in the cannabis market.
- Infarmed orders the withdrawal of two CBD creams from the market.
🇳🇱 Survey finds 60% in favour of legalisation in the Netherlands despite recent wins of anti-legalisation parties in national elections.
- The Office of Medical Cannabis (BMC) has increased the price of medicinal cannabis by one euro per gram to adjust to inflation.
- Study finds that tolerant Dutch drug policy in the 70s was driven by the goal of local authorities to minimise nuisances rather than tolerance or moralistic views.
🇺🇾 10 years after legalisation, Uruguay needs to lift access barriers and state controls on supply to expand legal market, a report by ex-National Drug Secretary General finds.
- Cannabis regulator publishes new instructions to grant licenses for the elaboration of magistral formulas in community and hospital pharmacies.
🇫🇷 French towns want to imitate Swiss and German legalisation models: the mayor of border city Strasbourg calls for a local experimentation, while Green mayor of Bègles, near Bordeaux, unveils its controlled legalisation pilot project aiming to reduce ill-effects of prohibition.
🇨🇭 Popular initiative in Switzerland seeks to amend Federal Constitution to recognise home cultivation, possession and sale of cannabis. If 100,000 signatures are collected before November 2025, a binding popular vote will be held in the country.
🇧🇪 In Belgium, the Senate has approved an information report recommending decriminalisation and a new legal framework for cannabis, but it has lacked support from Flemish parties ahead of crucial federal election in June 2024.
🇵🇰 Pakistan new ruling coalition wants to move fast with establishing a hemp regulatory authority to begin licensing producers in some areas of the country, with the goal to produce medicines and substitute dwindling cotton crops.
🇧🇷 A high-level visit of Brazilian President Lula has discussed the export of medicinal cannabis from Colombia with President Gustavo Petro, seeking to homologate regulations for importation.
🇨🇿 Czech government prepares further synthetic cannabinoid bans after backtracking on its decision to allow HHC, which has prompted the replacement with more toxic substances.
🇧🇬 Bulgarian National Assembly rejects a bill amending narcotic regulations to allow the processing of industrial hemp in Bulgaria in addition to growing.
🇮🇪 Irish parliament delays nominating members for committee which would implement the decriminalisation recommendations of its Citizens Assembly ahead of next general election.
🇮🇱 Israel has become a major supplier of illicit cannabis to the Arab world, particularly Jordan thanks to the drop in cannabis prices in the country.
🇲🇽 Mexico’s president López-Obrador accuses ex-President Vicente Fox of granting licenses to sell cannabis derivatives to companies related to him, allegations that he denies.
Cannabis Exports from Uruguay
🇩🇪 In Germany, the medical cannabis market has received a boost with 70,000 new patients enrolled in the first weeks of legalisation, thanks to more doctors being willing to prescribe and low prices attracting illicit market users to private prescriptions through online pharmacies:
- Data from the insured market shows that over €200m were reimbursed last year in the country, with flower increasing 11% compared to 40% for extracts.
- Cannamedical distributed a record 350kg worth €2.5 million in April, up 70% from 190kg in March, and anticipates possible shortages in the next months.The number of importers has continuously risen, reaching 100 in 2023. Consolidation is beginning due to falling prices and some companies gaining more market share.
- Canify launches Strawberry Banana and Black Cherry Pie from Portuguese grower RPK Biopharma which was recently acquired by Somaí Pharmaceuticals.
- Hapa Pharm develops new dosage forms for pharmacies, including prefilled joints and pellets for more precise inhalation dosing.
- Collini Apotheke (Cannflos) is developing new dosage forms, including hash/resins and tablets.
- Danish Tetra Pharm launches Xatepa in collaboration with Phoenix Pharma.
- Following German legalisation, Curaleaf is exploring a secondary listing in Europe, potentially in Frankfurt or London.
🇺🇸 In the USA, cannabis tax revenues are falling short of projections in many states, including Colorado and Washington, due to price drops. Meanwhile, sales of hemp products have surged despite concerns about their safety and lack of oversight. THCA hemp flower is becoming more accessible and competitive with regular cannabis due to similar pricing.
- USDA reports that hemp production value in the US reached $291 million in 2023, an 18% increase from 2022 which shows a recovery of herbal production as well.
- Flowhub reports a 65% increase in cannabis sales on 4/20 compared to an average Saturday, a 7% increase compared to last year.
- Cannabis dispensary chain MedMen entered bankruptcy proceedings.
- Trilogene Seeds released a new line of triploid THCa seeds offering benefits such as sterility, consistency, and quality in cannabinoid levels.
- Phylos has added 10 new Elite varieties of F1 hybrid seeds for controlled environments.
- US liquor retail chain Total Wine & More delivers THC and CBD drinks nationwide.
- Panda Hemp Gin, one of the largest hemp processing plants in the world, opens in Texas.
- Harley-Davidson introduces hemp-based composite in fenders of new electric cruiser.
🇬🇧 In the UK, concerns regarding product quality are mounting with patients reporting cannabis contaminated with mould, bugs, and other substances. Criticism includes quasi-recreational naming of available products, while some believe legacy variety names are helpful indicators.
- More vape launches in the UK: Australian brand Althea will distribute Vessel branded vapes.
- Kanabo-owned UK cannabis clinic Treat It expands to offer mental health treatments.
- Trip CBD drinks venture outside CBD with functional soft drinks with adaptogens. TRIP has launched products in SPAR UK, focusing on convenience and offering CBD and Mindful Blends.
- Orange County CBD is now available in UK airports, offering a new travel wellness option.
- British Cannabis plans international expansion to South Korea and Slovakia.
- 🇯🇪 Jersey exported over 200kg of cannabis flower in 2023, as medicinal cannabis industry is expected to become a significant part of the economy with around £60 million of investment.Jersey Hemp wins court battle against UK Home Office over CBD import ban.Northern Leaf merger with Voyager Life has been canceled.
🇨🇦 In Canada, export data shows permits vastly overpassing actual deliveries, an strategy by exporters to enable seamless trade, as slightly under 10 tonnes are currently exported every month:
- In Quebec, the proportion of people using cannabis declined in 2023, but vaping remains popular despite provincial bans.
- Auditor KPMG will no longer service cannabis businesses due to elevated risk.
- Constellation Brands is distancing itself from Canopy Growth by converting its shares into non-voting shares and stepping down from board.
- Tilray reported $63.4 million in net revenue from cannabis operations in the 3rd quarter, with 33% growth in international sales.
- Avant Brands net revenues increased by 15% in Q1, with exports increasing by 21% to C$3.3m.
- Apollo Green partners with Humboldt Seed Company to make eight cannabis cultivars available to researchers and, licensed commercial cultivators in international markets.
🇦🇺 In Australia, new extract dosage forms such as vapes are gaining popularity in the market. Gummies in particular are being more demanded and now represent 4% of SAS-B approvals:
- Aurora has relaunched its brand in the Australian market through owned-subsidiary MedReleaf, introducing a new range of premium dried cannabis flower products in Australia.
- Cann Compounding opened in Brisbane its second pharmaceutical compounding facility.
- Althea signed a distribution agreement with Symbion to distribute its products.
- Distributor Health House is preparing to open its own telehealth clinic this quarter.
- Tasmanian Botanics video unveils new greenhouse opened earlier this year.
🇳🇿 In New Zealand, increased by 150% in 2023 with over 150,000 packs dispensed in 2023 compared to 60,000 in 2022, Helius CEO says:
- Ora Pharm successfully completed its first export order of medicinal cannabis to Australian partner Canngea, as it intends to launch the next round of funding for expansion.
- Australian vertically-integrated company ANTG expands range in collaboration with NUBU.
- Cannasouth, the first cannabis listing on the NZ Stock Exchange, entered administration.
🇮🇱 In Israel, the number of medical cannabis patients in Israel is sharply declining in the last months, with a total decrease of nearly 6,000 patients.
- Canadian cannabis company Decibel claims that bankrupted Israeli company BOL Pharma owes it over $1.5 million, also claiming trademark violations.
- Ministry of health has ordered the cessation of distribution activities by Pharmacann due to it lacking licenses discovered during the insolvency proceedings.
🇵🇱 Israeli company Bazelet is entering the Polish medical market with a new 20% strain, distributed by partner distributor IMP&C.
🇲🇦 Production permits have soared in Morocco at the beginning of this year to 2905 authorisations for 2,552 hectares.
- The cannabis agency also said that 42 products have been manufactured to date, including cosmetics and food supplements, 7 of which have been registered.
- Exports to date have included 65.5kg to Switzerland, with another 30kg hash export underway.
- The country has unveiled an official logo for legalised cannabis products, seeking to distinguish them from illegal ones in the market.
🇫🇷 French study finds that 16.4% of French adults had used CBD in the past year, mostly among younger people with higher education with a history of tobacco and e-cigarette.
- Goldbar420 Swiss-Moroccan hash brand has launched in an agreement with le Grossiste du CBD as its exclusive distributor.
🇪🇸 South Spain MIFCO Biosciences partners with Canadian Apollo Green to supply innovative tissue culture services to Southern European LPs.
- Spanish CBD company The Beemine Lab plans to raise 3 million euros in a series A funding round to consolidate its business in Spain and expand internationally.
- American-backed Ondara, an LP in Soria, Spain, has faced delays in obtaining authorization for cannabis cultivation from the Spanish Medicines Agency.
🇵🇹 In Portugal, only 17kg of cannabis were sold in the domestic market in 2023 while 11 tonnes were exported to international markets.
- GreenBe Pharma has obtained its EU-GMP certification, under 24 months after beginning its facility construction in the Alentejo region of Elvas.
🇨🇭 In Switzerland, a pilot project has been launched in the cities of Bern, Biel/Bienne and Lucerne, with over 1,000 people expected to participate:
- In Lucerne, 250 residents being be able to legally purchase cannabis products from designated pharmacies. In Bern, five pharmacies offer a selection of products with neutral packaging.
- Indoor CBD grower Marry Jane has begun cultivating high-THC medicinal cannabis for the German market after passing GACP certification and obtaining Swissmedic’s approval.
- Canexis Pharma AG has received the manufacturing and narcotics license from Swissmedic.
🇨🇴 Colombian cannabis leader Clever Leaves voluntarily delists from NASDAQ.
- Earth’s Healing ships 400kg of medical cannabis flower to North Macedonia.
- Tarkus Pharma aims for $2 million in revenue this year after obtaining Colombian and Brazilian certifications and seeking new registrations in Brazil, Argentina, Paraguay, and Peru.
🇧🇷 In Brazil, medicinal CBD specialist Ease Labs announces a new funding round of 40 million reais ($7.8 million) to fund commercial expansion of own manufactured products in public schemes.
- Distribution of CBD through the SUS in São Paulo is set to begin in May supplied by Ease Labs.
🇺🇾 Sector consolidation perseveres in Uruguay with the closure of Pharmin and the sale of Boreal’s medicinal cannabis plant.
- GreenMed launches Xpectra 10, the first product with authorisation by the Ministry of Health.
🇲🇰 Phcann has teamed up with Tyson 2.0 to cultivate, manufacture and distribute its branded THC range in Germany and the UK, despite a previous agreement with Israeli company Intercure also involving exclusive distribution rights in international markets.
🇿🇦 In South Africa, Medigrow pledges R1 billion ($54m) investment in Eastern Cape province in an agreement with the government with the goal to cultivate 10,000 hectares creating 30,000 jobs, incuding an indoor cannabis grow and processing plant at Coega Special Economic Zone.
🇹🇭 In Thailand, Canadian-Colombian PharmaCielo signed a LOI to acquire operations with $2 million non-brokered private placement.
- Thai Department of Medical Sciences and Dr. CBD Company signed an MOU for technology transfer in hair tonic production with CBD extracts and oxyresveratrol.
🇯🇵 Japan‘s CBD market said to have grown sixfold to ¥24 billion ($154 million) in 2023, with cannabis laws amendment in December expected to further accelerate market growth.
🇭🇷 In Croatia, German publicly traded company Synbiotic has acquired Ilesol Pharmaceuticals, a Croatian company specialising in cannabinoid extracts and CBD isolates.
🇪🇨 In Ecuador, Cooperativa Ananda has partnered with CarbonConnect to optimize biochar production and certify carbon credits in Ecuador’s Amazon.
🇵🇾 International companies are interested in investing in Paraguay’s Industrial Hemp sector, including American company Hempacco Inc. and Israeli company Stick
🇨🇦 Study dismisses ‘lazy stoner’ stereotype: chronic cannabis use associated with increased positive emotions & reduced stress and fear, not affecting motivation or willingness to exert mental effort.
🇩🇪 Avextra has started enrolling participants for the Belcanto clinical trial on cancer palliative care.
🇩🇰 Tetra Pharm collaborates with Glysious to develop transdermal combination drugs targeting the endocannabinoid system.
🇨🇦 Tilray study on age-related patterns of medical cannabis use finds that chronic pain, arthritis, anxiety, and insomnia as primary illnesses and 53.8% reducing prescription opioid use.
🇨🇦 Avicanna completed an observational real-world evidence study on a topical gel for musculoskeletal pain and inflammation, showing improvements in symptoms and quality of life.
🇨🇦 Kinloch‘s Serene™ CBD Green Apple Gummy Drop was found ~3X more effective than the Comparator at increasing relaxation in a study.
🇦🇺 Cannim begins enrollment for a study on menstrual pain with Western Sidney University.
🇦🇺 OMG Pharma Australia partners with dsm-firmenich (Brains Bio) for fast-absorption CBD in upcoming phase III insomnia clinical trial.
🇬🇧 A Curaleaf study evaluated the outcomes of osteoarthritis medical cannabis patients showing improvements in patient-reported pain measures and general health-related quality of life metrics.
🇦🇺 Oxford Cannabinoid Technologies appoints CRO for phase I clinical trial on OCT130401, a combination of synthetic phytocannabinoids, aims to treat trigeminal neuralgia.
🇳🇱 Study on the efficacy of high-THC cannabis oil for neuropathic pain started by Leiden University Medical Center and Center for Human Drug Research in collaboration with Bedrocan.
🇨🇴 A study in Barranquilla, Colombia looked at topical cannabis use as an analgesic therapy for inflammatory diseases was studied, with all patients experiencing pain relief after two months.
🇮🇹 Results of a study supports the anti-inflammatory properties of CBD and Beta-Caryophyllene alone or combined in an in vitro model.
🇬🇧 α-humulene shows potential therapeutic applications and cytotoxicity against adenocarcinomas in rodent studies, reducing inflammation markers and exhibiting cannabimimetic properties.
🇺🇸 Study investigated dietary fat and delivery system on CBG pharmacokinetics: high-fat meal condition affected CBG pharmacokinetics even more than delivery system emulsification.
🇺🇸 Study examines the impact of cannabis use on orgasm difficulty in women, with findings suggesting that cannabis use before sex may improve orgasm function in women.
🇺🇸 Study examined effects of oral CBD on menstrual-related symptoms (MRS), with both dosing groups showing reductions in MRS, irritability, anxiety, stress, and subjective severity scores.
🇨🇦 Genome-wide association studies investigate the genetic factors influencing agronomic and morphological traits of drug-type cannabis.
🇺🇸 Study investigates photoperiodic flowering initiation in cannabis and its potential for improving cultivation by manipulating gene expression through far red wavelength ratios.
🇺🇸 A study on rolling papers used for cannabis consumption shows that they can contain elevated levels of potentially toxic elements, like copper, with product design and manufacturing practices, such as the use of copper-based inks, contributing to increased exposure to toxic elements.
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