Business leaders say the introduction of a limited legal cannabis market in Germany will have a ripple effect on the medical sector, creating new openings for Australian companies.
ECS Botanics chief executive Nan-Maree Schoerie said the reforms in Europe's largest economy would trigger a shift that will "reverberate across the EU".
"Germany is an evolving and very large market opportunity for ECS and we believe this legislative change will make doctors much more comfortable prescribing medicinal cannabis," she said. "ECS has been expanding its growing, cultivation and pharmaceutical-grade manufacturing operations… in preparation for export opportunities that will occur because of bills like this."
Little Green Pharma chief executive Paul Long described the development as the most significant legislative shift in global cannabis markets since Canada ended prohibition in 2018.
"This change will make Germany the largest federally legal cannabis market globally, and is anticipated to result in an increase in the number of patients and consumers by multiples while catalysing similar changes across Europe," he said.
"Critically, the decision removes cannabis from the narcotics list, meaning the existing medical access pathway will be substantially improved through the removal of prescribed conditions, narcotic reporting, and pharmacy stockholding limitations. It will also ease rules around telehealth services, e-scripts, and direct delivery to patients."
He said the shift creates a "unique opportunity" for LGP "given our well-established partnerships with multiple German distributors, large bank of cannabis genetics, and ownership of the largest and most advanced EU GMP-recognised medicinal cannabis facility in Europe".
"Ongoing EU GMP standards for medicinal cannabis will also continue to constrain North American non-GMP supplier participation in the market," he added.
Under Germany's new legal framework, not-for-profit cannabis clubs will be permitted, along with limited home cultivation and possession of small amounts for personal use.
Cann Group CEO Peter Koetsier, however, offered a more measured assessment of the reforms.
While expressing support for the change, he said it would not dramatically alter the position of Australian companies in the market.
"It's still quite limited and we can't supply the cannabis clubs for example," he said. "It's an important step on the journey and most companies look at Germany as an opportunity, as Cann Group does, so it only serves to reinforce that.
"We are exploring our export strategy and see opportunities in Germany, but I don't know if these reforms dramatically change things."
