The famous Investor André Kostolany once compared the economy and the stock exchange with a man walking a dog. Sometimes the dog (the stock exchange) walks well next to the owner, sometimes he runs excitedly ahead, sometimes he trots behind. But always the dog stays on the length of the leash.
In 2018 we saw price jumps of 400% within fewer months as with Tilray. In the past year 2019, however, some heavyweights had significant drops. In the news, a 40% decline in the sector index is reason enough to speak of disillusionment.
In view of last year’s price rally, this development could also be described unagitatedly as a natural correction or profit taking.
Not to miss the fact that the business with the plant continues to be brilliant, as indicated by a revenue growth of over 50% year-on-year for the industry giant Aurora.
Every boom comes in waves. And many analysts agree that the euphoria in 2018 was only a first flare up. To stick with the example of the dog: The cannabis market is growing like a puppy. After a growth spurt, the legs are too long for the body and it stumbles around a little clumsy. But this phase will be overcome quicker than we would wish for. The major investment firms like Merrill Lynch are just starting to wet their toes in this pond.
In Europe, the wave of legalisation is unstoppable. Never before so many cannabis preparations have been prescribed and paid for by health insurance companies as in the past year. Access for patients is becoming easier.
Business analyst Brightfield Group estimates that the market for medical cannabis in Europe will grow by around 80% per year and already has a turnover of around 8 billion dollars in 2023. In Germany alone, where the turnover in 2018 was 70 million, it is expected to reach about 2.7 billion dollars in 2023. The analysts also come to the conclusion in their report that Europe will soon be a more important market for producers than Canada and North America due to its strong progressiveness.
Cannabis is an alternative and supplement to many of the most commonly prescribed drugs. And on top of the non-prescription ones, which generate billions in sales. There is still enormous potential to be discovered with easy and safe to use solutions for patients.
MediCrops’ strategy is to introduce the highest production standards according to EU-GMP guidelines right from the start, thus guaranteeing access to the most important pharmaceutical distributions in the EU. With our own extraction plant and laboratories, our highly qualified scientific personnel find the fertile ground for innovations. Patented ready-to-use drugs and inhalation solutions, extracts and edibles from our own cost-efficient production – this major goal is rigorously pursued in order to be able to assert ourselves in the market.
With the support of our investors, the MediCrops team has the opportunity to realize these ambitious projects, grow rapidly and transform our know-how into shareholder value.
The wave of legalization in Europe will soon lead to spectacular debuts of domestic companies going public.
Since its foundation, the MediCrops Group has been structured and managed like a publicly listed company.
As soon as a corresponding market environment has been created on the European stock exchanges, the IPO can quickly become reality for MediCrops Holding AG.