Monday, February 08, 2021
Alternative to pain medication
"CBD will be far behind THC"
With the approval of medical cannabis at the latest, investors have discovered marijuana companies for themselves. After the first downturn, investors are now bullish again, says Synbiotic founder Müller ntv.de. But he doesn't see the greatest potential in the intoxicating THC business.
The United Nations gave a positive signal to cannabis companies late last year. The Narcotics Commission voted to remove cannabis for medicinal purposes from the category of the most dangerous drugs in the world. What are the opportunities for cannabis companies?
Lars Müller: A few years ago there was already a great gold digger mood in America. Many companies wanted to take advantage of the cannabis hype and jumped into growing cannabis. An oversupply then depressed the selling price. A downward slide was initiated with price dumping. The business was suddenly no longer profitable and many investors were penalized. Little by little, cannabis companies are now starting to grow again. Companies that initially specialized in cultivation are expanding and building their own brands – also in order to be able to better control sales prices. Joe Biden's victory in the US presidential election fuels hope that the US market will open up further. That also makes investors bullish again.
It may be different in the USA, but cannabis still has an image problem in Germany, right?
Lars Müller is the managing director of Synbiotic SE, the first German cannabis company to be listed on the stock exchange. The company focuses on the production of cannabinoids as well as the development of wellness and pharmaceutical products.
In the United States, it is much easier for people to get medical cannabis. Psychoactive cannabis is also less discredited there. In Europe, the therapeutic approach is only slowly coming into focus. People are realizing: Hemp and cannabis are not dangerous drugs per se, but can also make life easier. But of course, the industry still suffers from a stigma. But that is slowly changing, especially in Germany.
Will Germany miss the cannabis boom?
No not at all. There is no country in Europe that is as progressive with medical cannabis as Germany. After the legalization two years ago, more and more pharmacies are now selling medicinal flowers and more and more doctors are ready to prescribe THC for their pain patients. Compared to the USA, of course, that's just the beginning.
Where do you still see growth potential?
The THC market will continue to grow. But I see the greatest potential in the business with non-psychoactive cannabinoids, which do not fall under the Narcotics Act. Research shows what great therapeutic potential it has. In the next five to ten years, an extremely large amount will be created in this area. CBD will also be far behind THC in my opinion. The market for topics such as pain, anxiety and sleep alone is huge and is still dominated by pharmaceutical products. We're talking multibillions here.
There are now more and more companies that sell CBD products. Can an oversupply like the one the growers did a few years ago pose a threat to them?
The brands control their selling price themselves. I have been pleased over the past few months that raw material prices are falling. This increases the margin. That's why you can't compare it with the downward slide a few years ago. But of course: At the moment this is a hot topic that also attracts many black sheep. The market is slowly consolidating and the professional players are emerging.
Do you think people are educated enough to spot dubious companies?
CBD stands for cannabidiol. This is one of more than 100 active ingredients that can be found in the cannabis plant. Unlike THC, the best-known cannabinoid, CBD has no intoxicating effects and is therefore not subject to the Narcotics Act. It still works, just different. Research says it helps you focus, for example, and sleep better with it. Inflammation can also be avoided and muscles seem to relax better after exercise.
Absolutely not. We are still at the very beginning. Very few people know what distinguishes CBD from THC. We still have to do a lot of educational work, the therapeutic potential is still very undiscovered.
How can that change?
We are severely restricted in online marketing in Germany. We are not allowed to advertise on Facebook, we are not allowed to advertise on Google or say anything about cure and dosage. We can only clarify on third-party sites. But what is exciting is that many people know that it is not good for them if they take ibuprofen three times a day. That is why more and more people are looking for herbal alternatives on the Internet, reading up and finding out: CBD is a good alternative to painkillers.
Juliane Kipper spoke to Lars Müller
. (tagsToTranslate) Economy (t) Cannabis (t) Start-ups (t) USA (t) Germany