Medicinal cannabis in Germany - Business Report

158 Confidential __________________________________________________________________________________ Nevertheless, in autumn 2019 Farmako was taken over by the fourth largest Cannabis producer for 15 million euros. One can be curious how the Farmako business will develop. Within the framework of the vertical integration of the business model, cooperation with clinics, pain centres and doctors' networks are increasingly moving into the focus of activities The vertically integrated Cannabis company Figure 56: Example of a vertically integrated Cannabis company Whoever gets the doctors under control holds the key to market success. The acquisition of or par- ticipation in pain centres and MVZs that focus on pain therapy also points the way in this direction. Doctors' networks with many pain therapists are also sought-after strategic partners of the Cannabis companies. Not quite as important for market success, but by no means to be underestimated, are the phar- macists. They have a great influence on the practical supply and, especially due to the continuing dom- inance of prescription drugs, they are in the middle of the Cannabis business. Since not all pharmacies want to deal with the production of Cannabis prescription drugs, so-called "Cannabis focus pharma- cies" are emerging, especially in the cities. This is a similar development as we know it from pharmacies producing cytostatic drugs. We estimate that there will be about 400 to a maximum of 1,000 Cannabis pharmacies in the future. If these are organized through a franchise system, this results in a concen- trated purchasing power. Producer Licensing in & out Importer Distributor Marketing & Sales KAM Practice Hospital Services Provider Cooperation with medical net- works Participation in clinics and/or pain centres Contracts with sick funds