What Investors Should Look For in a Changing EU Cannabis Market

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As best practices, investors should check what assets the business owns and what unique selling point it can show.

• Established distribution channels to pharmacies — not only on paper but supported through real monthly sales.• Uses technology and innovation to drive the ecosystem of the business — whether that’s through telemedicine, pharmacy distribution or end-to-end patient services, among others. The more positions the business can cover on the value chain, the more it can stay autonomous to the changes in the market. It’s important to diversify services to be able to weather these developments.

• Provides accessibility to patients through digitization and automation. The experience should be as easy as shopping online. • Facilitates research backed by scientific evidence to secure real-world data about the use and effectiveness of cannabis therapy. • Ability to drive innovation in product development thanks to real-world data.

• Knowledgeable of the German market and its rules and regulations. Businesses should be in good standing with the law.Businesses poised to come out on top are those that do not put all their eggs in one basket. They have diversified their portfolio of services to meet unique aspects of the value chain.

This may include holding companies that perform research on the effectiveness of cannabis on patients and in real-life therapy. Or they may hold digital assets that build out the ecosystem of the industry — from telemedicine to strain and genome development to pharmacy support to home-grow and adult-use products and beyond. Investors should seek businesses that are set to become or establish themselves as integral parts of the end-to-end customer and patient journeys.

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