MJBizMag September 2020 - 62

AFFAIRS
FOREIGN
Medical Cannabis Sold in Italy by Source
Source: Italian Ministry of Health and the Dutch Office of Medical Cannabis
Copyright 2020 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved.
Italian pharmacies in 2018, according to
data from Italian health authorities. (See
chart " Medical Cannabis Sold in Italy
by Source. " )
However, surprisingly few companies
are involved in the Italian medical
cannabis market. By contrast, dozens
of companies are active in the United
Kingdom's medical cannabis market,
which is much smaller than Italy's in
terms of sales.
The likely reason: The Italian market is
structured in a way that leaves little room
for business opportunities.
A little more than 80% of the
861 kilograms of cannabis sold in
Italy last year was imported from the
Netherlands; that figure is up from 75%
in 2018. Bedrocan, a Dutch company,
produces much of that flower supply,
which is exported by the Dutch Office of
Medicinal Cannabis (OMC).
Cannabis is either imported directly
by hospital pharmacies, which are part
of the Ministry of Health, or by a few
private pharmaceutical wholesalers that
distribute to pharmacies.
Italy does have its own medical
cannabis production, grown exclusively
by the Ministry of Defense through its
Stabilimento Chimico Farmaceutico
Militare (SCFM) unit in Florence. The
SCFM-the only organization authorized
to grow medical cannabis in Italy-was
responsible for distributing 157 kilograms
of cannabis to Italian pharmacies in 2019.
However, the SCFM was not responsible
for producing all 157 kilograms. The
agency also bought some flower from
Canadian producer Aurora Cannabis for
distribution to Italian pharmacies.
Aurora won its first supply application
process in Italy in early 2018, offering
an average price of $3.48 (3.2 euros)
per gram of cannabis. That initial
round allowed the company to sell 100
kilograms to the SCFM.
Aurora also was the sole winner of a
62 Marijuana Business Magazine | September 2020
second application process in mid-2019,
offering an average price of $1.94 (1.73
euros) per gram of cannabis for a total of
400 kilograms over a period of two years.
(Forty kilograms of the 400-kilogram
supply was subsequently canceled by the
Ministry of Defense, which declared one
of the original three lots " not necessary. " )
The SCFM is expected to increase its
domestic production in 2020.
All medical marijuana flower sold
in Italy is produced in facilities with
European Union-Good Manufacturing
Practice certification. The product is
irradiated to reduce as much microbial
contamination as possible.
Italy has 20 administrative regions
with some level of autonomy for health
policies. Most of the regions offer
patients some insurance coverage for
medical cannabis, but the qualifying
conditions vary. The Tuscany region, in
the center of the country, leads Italy in
cannabis sales.

MJBizMag September 2020

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