On the heels of Luxembourg beginning to reform its adult-use pot laws, Tilray, Inc. (TSX: TLRY) (Nasdaq: TLRY) says it’s been selected by the country to supply cannabis for its medical program.
On Tuesday, the Canadian mega-firm said it was chosen by Luxembourg’s Ministry of Health as a supplier of Good Manufacturing Practice (GMP) -certified cannabis.
According to a statement, Tilray will supply a variety of its pharmaceutical-grade medical products, including extracts and dried flower with different degrees of THC and CBD. The prescription-based pot will be given to qualifying patients under doctor supervision.
As Tilray struggles to secure significant market share in Canada’s recreational market, CEO Irwin Simon has made several statements underlining the potential of medical cannabis. In Luxembourg, it’s likely that participating in the medical market there would also give the company an advantage when adult-use sales are approved.
Simon says his company believes its growth potential in the European Union represents a $1-billion opportunity, and the Luxembourg deal shows Tilray is turning potential into performance.
“With today’s validation from the Luxembourg Ministry of Health, Tilray now offers branded medical cannabis in 20 countries around the world — a testament to our high standards and status as a trusted partner to patients in need,” he said in a statement.
Tilray operates two GMP-certified cannabis cultivation facilities in Europe: one in Cantanhede, Portugal, and the other in Neumunster, Germany.
The company says its E.U. Campus in Portugal is a “multi-faceted” production centre that includes the cultivation, extraction, processing and packaging of medical cannabis. It also serves as a hub to support Tilray’s clinical research and product development across Europe.
Tilray notes that it’s established sales and distribution deals for medical pot through major pharmaceutical distribution channels, including CC Pharma, which was acquired by Aphria in 2019. Former rivals Aphria and Tilray’s merger closed in May.