The Financial Post reports in its Saturday, April 6, edition that Aurora and Aphria say they were among the three companies selected by the German government to cultivate and distribute medical pot in the European country. A Canadian Press dispatch to the Post says that both companies say the decision by Germany's Federal Institute for Drugs and Medical Devices is provisional and subject to a mandatory 10-day waiting period, which allows unsuccessful bidders to submit a challenge before the final contract is signed. If finalized, the cannabis produced by both Aurora and Aphria will supply the German medical cannabis market, which is the largest in Europe according to a recent report by Brightfield Group. Both cannabis companies say the provisional decision awarded them each the maximum number of five of the 13 available lots in the tender, over a period of four years. Berlin-based Denecan received the remainder.
Jefferies analyst Owen Bennett said the decision is positive for Aurora, as it helps to validate the quality of its medical operations and puts the Edmonton-based company in good stead when attempting to enter other markets. Germany's medical cannabis market will be worth $2.7-billion (U.S.) by 2023.
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