Panaxia, the manufacturer of Israeli medical cannabis products, announced today (Tuesday) the first commercial export of premium medical cannabis oil-based products to Germany, in accordance with the company’s forecasts from the beginning of the year. The shipment, which left Ben Gurion Airport from the company’s plants in Lod after completing the required inspections by the Ministry of Health and the Israeli customs authorities, is expected to land in Germany as early as Thursday. The products, developed by Panaxia and backed by clinical trials, will be sold under the Naxiva-Panaxol brand. Neuraxpharm.
Neuraxpharm, which will market the products in Germany, is expected to start sales as early as 2021. It is important to note that while in Israel the attending physician prescribes a prescription that includes the recommended dose and percentage of active ingredient needed by the patient. In Germany, the patient receives a prescription with the name of the exact product he will receive at the pharmacy.
Therefore, marketing the products among physicians authorized to issue prescriptions for medical cannabis products to patients for a wide range of diseases, which is Neuraxpharm’s area of expertise, is a prerequisite for success in a country that is considered the largest and growing medical cannabis market in the world In addition, according to estimates, the number of patients in the German market has steadily increased and is expected to grow to 1% -2% of the population within 4 years, ie, about 800,000 patients.
The average monthly expenditure of a medical cannabis patient in Germany is about 500-400 euros per month, compared to an average monthly expenditure of about 800-500 shekels per patient in Israel. Therefore, the high profitability inherent in the sale of products in the European market constitutes a significant line for the company, whose sales, like the other cannabis companies, have so far been based on the Israeli market only.
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It is estimated that sales of medical cannabis products to patients in Germany in the first half of 2020 amounted to about 75 million euros, with the expectation that within a few years the volume of the medical cannabis market in Germany will be several billion euros. These estimates cause the entire cannabis industry in Israel and around the world to look to Germany, as a market with the greatest profit potential, while today it is based solely on imports. Currently, Panaxia is the only company in Israel that holds a regulatory permit for the marketing of products in Germany, on behalf of the German Health Authority.
Dr. Dedi Segal, Founder and CEO of Panaxia Israel: “Today we are celebrating a success that is the result of hard and continuous work that expresses the power of Panaxia as a pharma company in both the business and regulatory fields. The German market is a significant growth engine for the company and we expect sales to begin. Commerce in the country, together with our strategic partner, Neuraxpharm will start in the coming weeks. “