Explosive market growth expected from mid-2022 following the revision of the Narcotics Act
From mid-2022, the entry into force of the revised Narcotics Act will make it much easier to trade cannabis with a THC content of more than one percent for medicinal purposes in Switzerland. This eliminates the need for an exceptional approval by the BAG (Federal Office of Public Health). The regulatory requirements for the production and marketing of MediCrops’ products will thus be considerably simplified and a regulated market for the cultivation, production and trade of cannabis containing THC will be created.
The situation can be compared to the full legalisation in Germany in 2017, where the market grew at an average of 42 per cent per year from 2018 to 2021 and virtually exploded to 536 per cent for extracts.
We expect the same in Switzerland, where the market is currently still very small at an estimated CHF 36 million, but it is expected to grow explosively by 35 per cent per year after legalisation from mid-2022. This is also a clear signal to insurance companies that cannabis is an attractive and cheaper alternative to conventional treatment methods. The potential is still huge because in Germany, only about 15 percent of 1.3 million patients are currently treated with cannabis.