Medicinal cannabis in Germany - Business Report

153 Confidential __________________________________________________________________________________ 9.5 Strategic business models in the German Cannabis market Now we are observing a whole range of quite different business models in the Cannabis market in Germany. The market is undoubtedly attractive and attracts investors and established international Cannabis companies as well as many newcomers. Many business models are geared towards quick success and less towards long-term and sustainability. Some newcomers also focus their business model primarily on being quickly taken over by a foreign Cannabis company and making cash accord- ingly. An example in this respect is the business development of Farmako from Frankfurt. If we take the value chain in the Cannabis market as a yardstick, i.e. from production to the pre- scriber of Cannabis in pain clinics, for example, i.e. to the point of care , we see quite different concepts and strategies. What does the value chain of the "players" in the Cannabis market look like? Figure 54: Value chain of Cannabis companies Each value chain level requires specific competencies, managers with the corresponding skills and a different capital investment. Also, the lead time is different for each value chain segment. For almost every section of the Cannabis business value chain there are stand-alone business mod- els and corresponding companies in the market. Only a few companies integrate several value chain sections in their business model. Especially the big international Cannabis corporations want to control as many sections of the Cannabis value chain as possible and strive for a vertically integrated business model.