Little Green Pharma (LGP) chief executive Paul Long has said expected changes to Denmark’s medicinal cannabis framework have justified the firm’s investment in its Danish facility.
Under proposals announced by the government, the country’s six-year-old pilot scheme is set to become permanent, while tight controls on cultivation and import rules will also be lifted.
LGP welcomed developments, saying they will unlock “substantial value for Danish producers, including Little Green Pharma”.
LGP acquired its Danish cultivation facility from Canopy Growth in June 2021 in a move which, at the time, raised eyebrows.
“Denmark’s proposed permanent medicinal cannabis framework not only underscores its leadership in the European market, but also highlights the immense economic and therapeutic potential of this emerging industry,” Long said.
“These advancements will empower us to expand our footprint, improve patient access, and contribute to the growth of a robust, globally competitive medicinal cannabis sector.”
He said the progress in Denmark aligns with “broader European trends in Germany and France” and “reinforces the strategic importance of LGP’s investment in Denmark”.
In addition to making the pilot scheme permanent, proposals include the lifting of a ban on the use of pesticides, which limited yield optimisation and increased costs, LGP said.
It said the changes will bring Denmark in line with international standards and improve cost efficiencies.
Meanwhile, restrictions on the importation of cannabis products will be eased for Danish producers, meaning LGP, and others, can “use their facilities as their European hub to improve logistics, reduce costs, and reduce the risk of product expiry”, LGP said.
“The importation restrictions also meant Danish producers had to rely exclusively on local service providers for some services, while being unable to offer their own services to foreign entities,” the WA-based firm said.
“The new framework would introduce price competition for local service providers and give LGP the ability to offer services such as GMP testing and packing.”
It will also give LGP the potential to expand its production footprint beyond flower by allowing the importation of API material, the company said.
The proposals to expand the medicinal cannabis framework in Denmark will see the government continue to subsidise up to 50% of medicinal cannabis costs, capped at DKK 10,000 (A$2,217) annually per patient.
In further positive developments, LGP said updated guidelines will improve prescribing practices and provide doctors with better resources and a simplified summary for patient education.
A planned review of driving bans for medicinal cannabis patients will also help “harmonise Denmark with more lenient international standards”, the firm added.
