Germany confirms cannabis licenses for domestic cultivation after challenges fail

(This story has been updated to correct the number of lots awarded to Demecan.)

The German Federal Institute for Drugs and Medical Devices (BfArM) on Monday announced the final results of the domestic cultivation application process, confirming the preliminary results as reported by Marijuana Business Daily last month:

• Five lots for Aurora Produktions GmbH.
• Five lots for Aphria Deutschland GmbH.
• Three lots for Demecan GmbH.

One of Aphria’s awarded lots and all three of Demecan’s were challenged by an unsuccessful applicant.

The three companies now have 18 months to deliver the first harvest, which must meet Good Agricultural and Collection Practices (GACP) and Good Manufacturing Practice (GMP) quality standards.

The companies will have to produce in indoor facilities with “bunker style” security measures.

The contracted production for the 13 lots totals 10,400 kilograms (22,928 pounds) over a period of four years, with each lot representing 200 kilograms per year.

The contracts include a clause that could allow production to increase by 10% during that period.

Complying with the Single Convention on Narcotic Drugs of 1961, all the production will be bought by BfArM and resold to medical marijuana manufacturers, wholesalers or pharmacies.

The price at which the BfArM will buy the flowers from the producers isn’t publicly known and depends on the winning bids.

The criteria to select the winners was based on a maximum of 100 points, of which 60 were granted based on technical documents and 40 based on price, with the lowest offer getting the most points.

Imports will continue to be possible. In the first quarter of 2019, for example, Germany imported 765 kilograms.