Aphria Inc. (TSE: APHA; NYSE: APHA) has announced that it has received the European Union Goods and Manufacturing Practices (EU GMP) certification with respect to their operations of producing medical products for human use. The certification was given by the Malta Medicines Authority (MMA), which have been known to have some of the strictest thresholds and standards in the EU.
This news comes at a very good time for the company as it plans to roll out its shipments of medical cannabis to markets in the European Union sometime this year. In particular, the company plans to base its European operations in Germany through their subsidiary CC Pharma GmbH. CC Pharma already has a distribution network set up within Germany and has now just been given the green light to start its first shipments, which are expected to occur in Q4 2020.
Aphria, who is already a household name in the cannabis industry back home in Ontario, Canada, seeks to increase their exposure to international markets. In the announcement, the CEO of Aphria, Irwin D. Simon spoke excitedly about this new development, stating that Aphria is “well positioned” to lead an expansion into international markets.
Cannabis prices tend to be higher in Germany compared to Canada, so this could be great news for Aphria’s bottom line if they manage to execute this expansion smoothly. Right now, a gram of medical cannabis in Germany costs about €26 ($37.70 CAD, $28.86 USD), according to DW.com versus Canada where the average price per gram hovers at around $10 CAD (€6.89, $7.65 USD).
The higher cannabis price is combined with higher spending power as Germany ranks among the highest per capita income countries in the world.