For medical purposes
First German company supplies cannabis
4/20/2022, 12:03 p.m
The pharmaceutical company Demecan has been cultivating cannabis for medical purposes for the past year – and is hoping for the policy of the traffic light government. It is now the first German company to deliver plants to the cannabis agency.
If you want to see how legal cannabis is produced in the middle of Saxony, you have to be patient. The production halls of the Demecan company in Ebersbach resemble a labyrinth of long, video-monitored halls. There are always locks where visitors have to disinfect their hands and change shoes and face masks. “We have to comply with the safety precautions because we handle narcotics and manufacture medicines,” says co-founder Constantin von der Groeben.
From his point of view, the effort was worth it: After the topping-out ceremony last July, the company has now delivered medical cannabis for the first time. Since 2017, patients have been able to have their doctor prescribe cannabis for medical purposes. It is used, for example, to relieve pain in the seriously ill. Since then, the drug has been booming. According to the Federal Institute for Drugs and Medical Devices (BfArM), 20.6 tons of cannabis flowers and extracts were imported last year alone.
Only three manufacturers grow cannabis in Germany on behalf of the state. In 2019 you won a corresponding tender from the BfArM. The Aurora company has its production facility just across the Saxon border in Leuna (Saxony-Anhalt). With Tilray, which has already shipped cannabis, the third company is located in Neumünster (Schleswig-Holstein). Both are in Canadian hands – Demecan stands out as a German start-up.
Production capacity can be expanded at short notice
The founders say that they spent months in a shared room in Berlin and fine-tuned their offer. In search of a perfect location, they came across the former slaughterhouse site in the Meissen district. The proximity to Dresden is an advantage. And: Should the demand for German cannabis increase, the founders could expand their production capacity to over ten tons of cannabis flowers per year in the short term. Demecan is currently said to produce almost 1000 kilograms per year. Overall, the tender stipulates that the three companies in Germany will produce a good ten tons over four years.
How much the specially founded and cannabis agency based at the BfArM pays for the flowers, she does not reveal. Just this much: Pharmacies would have to pay EUR 4.30 per gram to the agency, which acts as an intermediary between the companies and the pharmacies. According to their own information, the founders invested 20 million euros for the production in Ebersbach – 30 percent of this came from funding sources, the rest came from investors. In addition to the expansion of the halls that had not been used for a long time, the technology was particularly expensive.
The company meticulously collects data in each of the cultivation halls. Whether temperature or CO2 content: nothing is left to chance. “Our goal is to provide patients with the same quality for every single plant,” says co-founder Adrian Fischer. Each flower must contain the same amount of the substance THC, so that patients do not accidentally take too much or too little. “Constant quality can best be guaranteed in indoor cultivation. That was also one of the specifications in the tender.” This means that the requirements for companies are significantly stricter than elsewhere. At its facility in Denmark, the company produces Aurora Cannabis in greenhouses.
Optimal growth: Light simulates the seasons
In order to offer the plants the best possible conditions for growth, Demecan simulates the seasons in the halls using different lights. Co-founder Cornelius Maurer walks through the rows with a tablet equipped with a special white filter. “This is the only way to really see whether the plants are a rich shade of green and look healthy,” he says. After the start of production last October, the founders have now produced several crops and are satisfied with the quality.
In addition to the tests in our own laboratory, there are other external controls by the authorities. “We keep trying to improve the plants,” says Fischer. The founders are hopeful about the planned legalization of cannabis. According to the coalition agreement, the Ampel parties want to introduce “controlled sales of cannabis to adults for recreational purposes in licensed shops”. This would “control the quality, prevent the transfer of contaminated substances and ensure the protection of minors,” it says.
According to a study by the German Hemp Association, the state could earn 1.8 billion euros annually from the cannabis tax alone. Companies are also hoping for big business. If the traffic light allows the controlled sale of cannabis, says Fischer, Demecan can deliver the best quality for the broader market – and continue to expand.