10 International companies have been competing in recent weeks for a license to grow and manufacture medical cannabis in Germany as part of the medicalization reform there, but this morning the German court announced the suspension of the procedure after problems were discovered in the tender conditions.
The District Court of Düsseldorf, Germany, has halted the tender process for licenses to grow medical cannabis in a country that was supposed to allow 10 companies to join the establishment of the local branch.
Among the companies that competed in the tender were a number of Israeli companies, some of whom recently gave up their bid after realizing that the conditions of growth and production demanded by the Germans made the business economically unprofitable.
The value of shares of some of the Israeli companies issued on the stock exchange plummeted today by tens of percent following the announcement.
According to the auction, published in April 2017, were supposed to receive exclusive companies for the production and delivery of 6.6 tons of medical cannabis each year.
The Federal Drug Control Agency in Germany (BfArM), which is responsible for the medical cannabis industry, listed in the 18 document that until 2022 this enormous amount of cannabis is required and that the first harvest is expected to begin in 2019.
This morning, BfArM announced that it will not be able to meet the stipulated deadlines: "We will make the necessary decisions to succeed in starting a new tender as soon as possible," the announcement said.
According to the German press, one of the reasons for the court's decision to stop the process is complaints from at least one member of the 10 final nomination that they did not have sufficient time to prepare for the submission of the plans.
"At a hearing last week, Justice Heinz-Peter Dix visited the current tender procedure and said that the deadline given to the candidates was too short and should be extended," it was reported. At the same hearing, Attorney Hike Das, representing the government agency, noted that "stopping the procedure will harm the patients."
It should be noted that the German medical cannabis industry opened last year, March 2017, but the huge demand from patients and the fact that Germany permits medical cannabis in the meantime only from imports from the Netherlands and Canada led to a sharp rise in the price of treatment up to tens of euros per gram.