GROW’s strategic expansion into the German cannabis market makes it one of the few medical cannabis companies to be placed in four different regions.
The medical cannabis market in Europe is projected to reach a massive €12.17bn (~£10.13) by 2027. Germany is predicted to be one of the biggest markets within Europe, anticipated to be worth €7.7bn by 2028 by Prohibition Partners – making the region vital for any company looking to cement its footprint in European medical cannabis.
GROW’s new partnership with German pharmaceutical company Nimbus Health – which was one of the first medical cannabis distributors in Germany – will give the company access to all pharmacies that provide cannabis products in the country.
With improving patient access across the globe as the driving factor behind GROW, the move is aligning the company with its strategy for global expansion. GROW already has strong ties to Germany – with co-founders Ben Langley and Dr Ian Atkinson meeting in Berlin on the day cannabis was legalised for prescribing in Germany.
Co-founder and CEO, Langley, commented: “We’ve been looking at Germany for a while now, it was always a market that we wanted to get into eventually. We thought we could make a big difference in Germany with GROW’s model, which has been quite successful in the UK.
“We know that there’s a lot of players on the ground already, but we felt that with our deep patient focus, with the way we work with doctors, the way we think about innovative products, that actually that we could make a real difference.”
GROW Germany’s managing director Susan Nosbuesch, has a pharmaceutical background in orphan diseases, and has been in the German cannabis market since 2018.
Nosbuesch commented: “What’s interesting about the German market is that not everyone realises that it’s the only market in the world that has almost full reimbursement for patients with chronic and palliative diagnoses and who submit an application to their health insurance company.
“For the majority of patients who apply, it’s a tremendous reimbursement. Not a single country in the world has this – which makes it an important strategic market. It also gives a foundation to say EU GMP cannabis is medicine, and a very important one for patients with chronic, palliative and complex disease states.
“I specifically came to cannabis, realising that, with all of the drugs out there, and even the registered drugs in orphan diseases, there are just so many people who still suffer. I was excited about GROW and believe that it is one of the best companies in the cannabis space in Europe, because we’re perhaps the only company with a biotechnology research and development platform where we’re doing true innovation.”
A unique product
GROW is launching its uniquely formulated extract into the German cannabis market. Leading medical cannabis extracts are largely THC and CBD balanced, but GROW’s extract is a 10 to 15 (CBD dominant) ratio.
This formulation offers both cannabinoids whilst possibly improving on some of the side effects of THC – the cannabinoid often needed for pain patients.
“Many physicians agree this formulation is an important therapeutic option, different from those most commonly prescribed today. It’s filling a gap, expanding choices for physicians and their patients” Nosbuesch said.
“We’re aiming to partner with physicians and pharmacists to find the gaps where patients may not have access because of limiting assumptions in the system.”
A unique player
The company is now in an active launch phase engaging with some of the leading cannabis physicians, and Nosbuesch highlights there is still a lot of work to be done.
“GROW’s focus on science, innovation and biotech innovation in the future makes us really unique,” said Nosbuesch.
“It’s an exciting time to work with neurologists, pain specialists, and specialists in gerontology for medical cannabis medical education. There is still so much unmet medical need and GROW is perfectly positioned to be the next new important company in Europe – starting in Germany.
“Nimbus is one of the key suppliers of medical cannabis products in Germany and is recognised as an expert in the industry, a leading stakeholder and an excellent partner for our business goals.”
Langley added: “Germany will be one of the key locations that we move into over the next two years. We’re looking at other European locations currently, as well as South America. It’s an exciting time in global medical cannabis with a lot of markets opening up.
“Each market has its own idiosyncrasies in terms of regulations, challenges and opportunities. Our goal is to make sure we’re getting quality cannabis medicines to patients. So, it’s our job to figure out those markets, make sure we’re doing our job and getting in on the ground.”
Nosbuesch highlights that every market has different barriers. In Germany, an application is needed for cannabis, but office-based physicians often do not have experience in helping patients with this process.
“I think the opportunity in Germany is partnering with centres and medical associations to help all physicians understand that the application process is not difficult,” said Nosbuesch. “The rejection rate is not very high, but there are still a number of patients who do not receive approval. We want to support the medical community to expand market access for chronic disease and palliative patients, living up to the vision that GROW has put forth.
“We really need to partner with all entities leading the way and bring in innovative products faster, and expand the number of physicians with medical cannabis knowledge and experience.”
Realising global ambitions
GROW says the expansion into the German cannabis market shows its high ambition, and that the company’s global goals are now being realised. Its focus on research and innovation, which it has been carrying out for five years, is also accelerating its plans.
Langley said: “We know that patient access to quality cannabis medicines is a global problem, so, getting into Germany, with many more markets to follow, is exciting for us and for our shareholders. We have a multifaceted model in terms of our research and development, which means we have got a lot of places with which to operate and, ultimately, sell what we produce.
“This is just the beginning.
“It takes many years to come up with game-changing innovation, but we now have some really interesting technologies that are coming to the fore, which are going to make a big difference for patients.”
A key aspect of achieving its goals is through collaboration, says Langley. GROW has a number of partnerships in the UK with some of the world’s leading brands, including Aurora, Columbia Care, Tilray, Canopy, Spectrum.
Langley said: “The way we think about it as a company is that the best way to achieve more as an industry is to partner. Any given company trying to act by themselves, without going about this in the right spirit and actually looking for collaboration, is going to achieve less, so for us, we’ve always looked to collaborate.
“It is always the way we’ve operated and it is why we’ve done a great deal with Nimbus. In the UK we’ve got a relationship with IPS that has been massively successful. It has made us a leader in the UK.
“We work with different brands. It’s all about achieving the goal of best cannabis medicines and breaking down those barriers to access.”
In August 2021, GROW Group became the first British medical cannabis startup ever to crowdfund, launching its initial crowdfunding round. The raise hit 100 per cent of its target in just one hour. The company is still raising funds through its £6m Series C raise, which is currently sitting at just under £5m and the company is expecting an oversubscription.
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