- PharmaDrug Inc. (BUZZ) has entered into a supply agreement with a European cannabis extractor
- PharmaDrug expects to begin selling in Germany by September of 2021
- The company owns 80% of Pharmadrug Production GmbH, a German medical cannabis distributor
- The company will supply local German cannabis wholesalers with THC oil while also selling directly to the company’s own pharmacy distribution network
- PharmaDrug Inc. is a specialty pharmaceutical company
- PharmaDrug Inc. (BUZZ) is unchanged, trading at C$0.085 per share at 11:30 am ET
PharmaDrug (BUZZ) has entered into a supply agreement with a European cannabis extractor for THC oil to be sold under PharmaDrug’s own brand.
PharmaDrug expects initial shipments and sales to begin in September of this year.
Pursuant to the agreement, PharmaDrug’s licensed German distributor, Pharmadrug Production GmbH will purchase PharmaDrug branded medical cannabis from the Eurozone cannabis extractor.
PharmaDrug plans to implement a twofold strategy. Firstly, it will supply local German cannabis wholesalers with THC oil while also selling directly to the company’s own pharmacy distribution network.
Pharmadrug Production recently hired a senior German pharmaceutical sales executive to continue to expand the sales team and carry out this strategy.
PharmaDrug’s primary obstacle to the significant growth of its cannabis distribution business is the lack of supply. The company announced a supply agreement with a Canadian-based multinational cannabis company in February. PharmaDrug Production received its initial shipment of product and has already begun sales and shipments.
The short-term strategy will be to use this new line to increase revenue and expand the company’s own direct pharmacy network.
PharmaDrug also anticipates carrying the LP’s THC oil line in the second quarter. The company will seek out more relationships with Global LPs to be able to add to their lines of third-party-branded medical cannabis products.
Management is continuing to negotiate agreements with suppliers for medical cannabis flowers to be sold under PharmaDrug’s brand.
Chairman and CEO Daniel Cohen commented,
“We are extremely excited to sign this agreement to finally launch medical cannabis in Germany under our own brand. The company is making several movers to significantly increase its presence and volumes in the German medical cannabis market. Our focus will continue to be on market share growth with a keen eye on revenue growth and profits. These goals can only be achieved through increased product lines, developing of our own brand, and expanding our market presence.”
PharmaDrug has received its shipment of initial PharmaDrug branded CBD oils. The company will seek to distribute the product via distributors and e-commerce platforms. With an established supply chain in place and with final consumer packaging finalized, management will be able to test the market out and determine its strategy for CBD oils in Germany and other Eurozone countries.
PharmaDrug Inc. is a specialty pharmaceutical company focused on the research, development and commercialization of controlled substances and natural medicines such as psychedelics, cannabis and naturally-derived approved drugs.
The company owns 80% of Pharmadrug Production GmbH, a German medical cannabis distributor, with a Schedule I European Union narcotics license and German EuGMP certification allowing for the importation and distribution of medical cannabis to pharmacies in Germany and throughout the EU.
PharmaDrug Inc. (BUZZ) is unchanged, trading at C$0.085 per share at 11:30 am ET.
