EMMAC7 Feb 2020 16:41
Tensions are rising between European companies, Canadian firms and French producers as France prepares to allow imports of cannabis-based medical treatments on a trial basis later this year.
In September this year, French drug safety agency Agence Nationale de Sécurité du Médicament et des Produits de Santé (ANSM) will allow imports of cannabis-based medical treatments to begin on an experimental basis.
Products will include oils, tablets, and dried flowers to inhale, and will include the psychoactive component of marijuana, THC (tetrahydrocannabinol).
The trial is set to last two years, with more than 3,000 patients in France expected to be the first to receive the new drugs. Relevant conditions include severe epilepsy, nervous disorders, palliative care, multiple sclerosis, and side effects of chemotherapy.
ANSM recently confirmed that it would be open to authorising “foreign products” throughout the two-year trial, and said that it had already “auditioned” seven companies last year, before a committee of experts.
Yet, Christelle Ratignier-Carbonneil, ANSM deputy general manager, said: “If a national producer has the capacity to respond to the criteria...it could be taken on."
Canadian companies step in
Already, several Canadian companies are seeking to dominate the French market as a result, including Tilray, Canopy Growth, and Aurora - according to a new report on the issue by French newspaper LeFigaro. Medical cannabis has been legal in Canada since 2001 (and recreational cannabis since 2018).
Dounia Farajallah, Tilray France director, said: “This [medical cannabis] is for illnesses that have failed treatment, for which there is no other solution.”
Yet, despite the global medical cannabis sector projected to be worth €55.8 billion by 2025 (according to researchers Grand View Research), these major companies have not been growing at the speed investors may have expected, making the French market more attractive for growth.
The Canadian market is under pressure: since August, Tilray has lost 60% of its market value, while Canopy Growth and Aurora lost 38% and 75% respectively. These companies are now seeking to establish a strong presence in France as the national trial begins.
Hélène Moore, Quebec director of Aurora’s French operation, said: “There was an over-estimation of demand, and the speed of changing legislation across the world. The trend is slow. More education is needed [on the issue].”
These companies are adamant that their operations will lead to more local investment, and bring more jobs to France - despite many of them, including Tilray, continuing production outside the country.
Ms Farajallah, of Tilray France, said: “Even though our production will remain based in Portugal, we will create jobs in France. We will need teams of medical advice doctors, medical reps, lawyers, delivery staff…”
Sign In
Follow the stocks
