The Australian cannabis company AusCann has announced a strategic partnership with Eurocann, a European cannabis corporation, to explore opportunities in the German and Australian markets. The deal comes after Germany’s coalition government agreed on a bill to legalise adult-use cannabis, opening up new possibilities for the cannabis industry.
AusCann to loan $5 million to Eurocann for expansion
As part of the agreement, AusCann will provide a secured loan of $5 million to Eurocann, which owns HAPA Pharma, a German manufacturer and distributor of medicinal cannabis products. The loan will be used to fund the construction of additional greenhouses and the expansion of manufacturing capabilities in Germany. In return, HAPA will exclusively supply AusCann with EU-GMP certified medicinal cannabis products for commercialisation in Australia and New Zealand.
AusCann’s CEO, Nick Woolf, said that the loan facility was a win-win situation for both parties. “We are delighted to support Eurocann’s growth plans in Europe, which will also benefit AusCann by securing a reliable and low-cost source of high-quality cannabis products for our local markets. This will enable us to offer more choice and value to our customers and patients, especially in light of the upcoming changes to the Therapeutic Goods Order 93, which will require higher standards of manufacturing for imported cannabis products,” he said.
AusCann and Eurocann to collaborate on product development
The partnership will also involve the joint development of standardised dosage form cannabis products using AusCann’s self-emulsifying drug delivery technology (SEDDS), which enhances the bioavailability and consistency of cannabis formulations. The companies will focus on the German market, which is expected to be the largest and most lucrative in Europe, as well as other potential markets.
Woolf said that AusCann’s SEDDS technology was a key differentiator for the company and that working with Eurocann would accelerate its product development and innovation. “We believe that our SEDDS technology has the potential to create superior cannabis products that can deliver consistent and predictable outcomes for patients and consumers. By collaborating with Eurocann, we can leverage their expertise and access to the European market, where there is a growing demand for high-quality and differentiated cannabis products,” he said.
AusCann to optimise SEDDS technology with Monash University
In addition to the partnership with Eurocann, AusCann has also entered into a research agreement with Monash University to optimise its SEDDS technology and enhance its production capabilities for the local and European markets. The research project will be led by Professor Ben Boyd, an expert in colloidal and pharmaceutical science, and will involve the use of advanced analytical techniques to characterise and improve the performance of AusCann’s SEDDS formulations.
Woolf said that the research collaboration with Monash University was an important step for AusCann’s scientific and technical advancement. “We are excited to work with Professor Boyd and his team, who have extensive experience and knowledge in the field of drug delivery and nanomedicine. This research project will help us to further refine and validate our SEDDS technology, as well as to scale up our production processes and ensure the quality and stability of our products. This will ultimately benefit our customers and patients, who deserve the best possible cannabis products,” he said.
AusCann and Eurocann to benefit from German cannabis legalisation
The partnership between AusCann and Eurocann comes at a time when the German cannabis market is undergoing a major transformation, following the agreement of the coalition government to legalise adult-use cannabis. The bill, which is expected to be passed by the parliament in the coming months, will allow adults over 18 to buy and possess up to 15 grams of cannabis from licensed retailers, as well as to grow up to three plants for personal use. The bill will also regulate the production, distribution, and taxation of cannabis, as well as the promotion and education of responsible use.
The legalisation of adult-use cannabis in Germany is seen as a game-changer for the European cannabis industry, as it will create a huge and diverse market for cannabis products, both medicinal and recreational. According to a report by Prohibition Partners, the German cannabis market could be worth up to €7.8 billion by 2028, making it the largest and most influential in Europe. The report also predicts that the legalisation of adult-use cannabis will boost the demand for medicinal cannabis, as more people will become aware of the benefits and availability of cannabis products.
AusCann and Eurocann are well-positioned to capitalise on the opportunities and challenges presented by the German cannabis market, as they have a strong and complementary partnership that combines AusCann’s innovative technology and product development with Eurocann’s established presence and network in Europe. The companies are confident that their collaboration will enable them to offer high-quality and competitive cannabis products to the German and Australian markets, as well as to explore other potential markets in the future.
