Little Green Pharma (LGP) chief executive Paul Long says the anticipated overhaul of Denmark's medicinal cannabis rules has validated the company's decision to establish a presence in the country.
Under government proposals, Denmark's six-year pilot program is set to transition into a permanent framework, with tight restrictions on cultivation and imports also slated for removal.
LGP welcomed the developments, saying they will unlock "substantial value for Danish producers, including Little Green Pharma".
LGP purchased its Danish cultivation facility from Canopy Growth in June 2021, a move that drew scepticism at the time.
"Denmark's proposed permanent medicinal cannabis framework not only underscores its leadership in the European market, but also highlights the immense economic and therapeutic potential of this emerging industry," Long said.
"These advancements will empower us to expand our footprint, improve patient access, and contribute to the growth of a robust, globally competitive medicinal cannabis sector."
He said Denmark's progress aligns with "broader European trends in Germany and France" and "reinforces the strategic importance of LGP's investment in Denmark".
Beyond making the pilot program permanent, the proposals include removing a ban on pesticide use that had constrained yield optimisation and driven up costs, according to LGP.
The company said the changes will bring Denmark into line with international standards while improving cost efficiencies.
Import restrictions on cannabis products will also be eased for Danish producers, allowing LGP and others to "use their facilities as their European hub to improve logistics, reduce costs, and reduce the risk of product expiry", LGP said.
"The importation restrictions also meant Danish producers had to rely exclusively on local service providers for some services, while being unable to offer their own services to foreign entities," the WA-based company said.
"The new framework would introduce price competition for local service providers and give LGP the ability to offer services such as GMP testing and packing."
The revised rules would also open the door for LGP to broaden its production beyond flower by permitting the importation of API material, the company said.
As part of the expanded framework, the Danish government will continue subsidising up to 50% of medicinal cannabis costs, capped at DKK 10,000 (A$2,217) per patient each year.
LGP also pointed to updated prescribing guidelines that will give doctors better resources and a clearer summary tool for patient education.
A planned review of driving restrictions for medicinal cannabis patients is expected to "harmonise Denmark with more lenient international standards", the company added.
