The team at CBD.fr has transcribed the FINANCIAL POST article into French for your convenience… you will find the original article, written by Market One Media Group, here. Summary
EXMceuticals on the ground in Portugal
- Portugal is poised to become a cannabis powerhouse
- EXM wins a grant for COVID-19 research
- EXM’s membership in APIFARMA, a major milestone
- EXM has the license, the facilities, and the team to succeed
- EXM prepares to enter the vast, underserved European cannabis market
- EXM imports pure cannabinoids into Portugal for the first time
- As Portugal becomes the European hub for medical cannabis, EXMceuticals seeks to further establish itself in this market.
By Don Hauka
- Portugal invests in life sciences and production capacity in a sector that already represents 9% of the national GDP. Growing it significantly in the coming years is a strategic priority for the national government. EXMceuticals is tapping into this European market and is currently building a pharmaceutical-grade, GMP-compliant, industrial-scale extraction and refining facility in the European Union, near Lisbon, Portugal. EXM’s existing, fully operational, equipped, licensed, and staffed cannabis laboratory in Lisbon recently received a COVID-19 R&D-focused grant from the European Union and the Portuguese government.
- For centuries, Portugal looked west, watching the sails of explorers like Vasco da Gama’s ships as they set out to discover what the world had to offer in Africa, the Americas, and India, and the treasures they held. Today, the country is turning its gaze eastward toward the rest of Europe and the promise of new riches and wealth. But this generation of modern adventurers isn’t looking to return with cargoes of gold or spices. Instead, they hope to export something else. The healthcare sector in Portugal is a driving force of the country’s economy. According to the Portuguese government website, “investment in R&D has increased by approximately 128% over the past 10 years, and the number of scientific publications by Portuguese researchers has followed this trend, with an increase of 123% over the same period.”
Furthermore, “Portugal is home to a dynamic and innovative R&D ecosystem, supported by several scientific and technological institutions present throughout the health and pharmaceutical value chain, including clinical trials.”
Despite this, the country faces the challenge of addressing an aging population in the era of COVID-19. However, it also has the opportunity to play a leading role in the pandemic response by developing biotechnologies that identify pathogens and enhance diagnostic capabilities.
This is why the country is investing in life sciences and production capacity in a sector that has seen its pharmaceutical industry exports grow by 200 percent over the past 10 years. The country is also open to alternative treatments and therapies, including cannabis-based products. In the health and wellness space, Portugal is now the gateway to the EU.
EXMceuticals on the Ground in Portugal
EXMceuticals Inc. (CSE: EXM | FSE: A2PAW2) is about to navigate through this golden gateway. EXM is a bioscience company and an emerging player in the hemp and cannabis wellness sector. The company’s goal is to become one of the world’s leading suppliers of the highest quality medical cannabis ingredients.
EXM is building a large-scale, pharmaceutical-grade extraction, refining, and purification facility.
The company already has a substantial footprint in Portugal, with a licensed cannabis R&D facility and pilot refinery in Lisbon, coupled with a GMP-pharmaceutical-grade, industrial-scale extraction and refining facility under development nearby.
EXM received authorization for cannabis research and development from INFARMED, the Portuguese national authority for medicines and health products, in November 2019. CEO and Chairman of the Board Jonathan Summers says this authorization has positioned EXM to capitalize on a massive opportunity and a clear path to add a commercial and industrial cannabis license to its existing R&D license.
“The Portuguese authorities want EXM to be a hub for science, extraction, and purification to complement the emerging cultivation industry, and we said yes, of course, we will,” says Summers.
“We expect to make our first commercial deliveries by the end of the third quarter of next year.”
Portugal is poised to become a cannabis powerhouse.
EXM’s timing is significant, as Portugal is set to become a hub for medical cannabis. Its southern European climate is ideal for year-round cultivation, and production costs are low. There is also a clearly defined legal framework outlining what is permitted. It is also expected to surpass the Netherlands as Europe’s largest cannabis producer by the end of 2020 if current growth rates continue.
EXM focuses on creating EU GMP-certified cannabinoids with high quality standards.
This positions EXM as the partner of choice for all extraction, refining, and purification needs of the local and international markets seeking to enter the EU-GMP medical market. “The beauty of Portugal is that there will be a lot of domestic cultivation there, and we can use that as a base to export to the rest of Europe, like Germany, and the rest of the world, building on such high standards. Europe offers a fantastic opportunity,” Summers notes.
How big is that opportunity? Recently valued at around €240 million ($260 million), Europe is on track to become the world’s largest legal cannabis market within the next five years.
In the last 12 months alone, the European cannabis industry has grown more than in the previous six years. Furthermore, six countries have announced new legislation, and more than €500 million has been invested in European cannabis companies. EXM wins COVID-19 research grant
Summers says one possible application is using the terpenes found in cannabis to create filters for reusable masks.
“Rather than these disposable masks that clog drains and create a horrible waste problem, you could have a renewable mask containing a filter that not only smells good because it contains terpenes, but is also a virus retardant,” he notes.
“If you want to get rid of it, you just put a new filter in the mask. It will also be designed to be much less harmful to your skin compared to other disinfectants.” EXM’s Membership in APIFARMA: A Major Milestone
EXM celebrated another significant milestone at the end of September when the company was accepted as a member of the Portuguese Association of the Pharmaceutical Industry (APIFARMA). The association helps foster innovation, promote resilient regulatory systems, maintain high quality standards, enforce ethical practices, and advocate for sustainable healthcare policies to meet the needs of patients and the healthcare system.
“This is an important step that will help us with state support and with people who see us as a bioscience company, not a cultivation company. You can’t be a cannabis grower and a member of APIFARMA, and we are obviously delighted to become a member,” explains Summers.
Founded in 1975, APIFARMA represents more than 120 companies operating in Portugal and defends and promotes the interests of its members, covering all areas of activity from R&D to production.
EXM Imports Pure Cannabinoids into Portugal for the First Time
Another major step forward for the company came in September when it imported a significant quantity of various cannabinoid distillates into Portugal from North America with the help of Farmceutica, a major supplier.
These quantities will increase as additional commercial volumes are required. EXM has also reached an agreement with Econnabis SAS to supply up to 200 kg of GMP-compliant THC distillate to EXM’s proposed Portuguese refinery. Econnabis SAS is an operating subsidiary of Plena Global Holdings Inc., a large-scale producer and supplier of medical-grade cannabis ingredients. Several other supply agreements have also been signed under memoranda of understanding.
“I have absolutely no idea which cannabinoids, or cannabinoid combinations, customers will ultimately want. The machines we have in place can essentially produce anything we need as long as we can obtain the raw materials, biomass, or extract,” he adds.
“This flexibility allows us to truly adapt to customers’ desires and needs with an endless variety of cannabinoid-based products, formulations, and brands created through EXM’s operations.”
EXM’s State-of-the-Art Facility
EXM has the license, facilities, and team to succeed.
The foundation of EXM’s footprint is the cannabis research and development license obtained from INFARMED in November 2019. Currently unique in Portugal, this crucial scientific license has enabled EXMceuticals to take a significant leap forward in its European operations by allowing it to import, research, and refine cannabinoids and cannabis-based ingredients within the European Union for R&D purposes.
Meanwhile, work continues on fitting out and equipping EXM’s pharmaceutical-grade facility for production. Once completed, the facility will enable the supply and export of pure cannabis ingredients throughout the EU and beyond, all under the umbrella of INFARMED. EXM is utilizing a former plastics factory for its refinery, which has received pre-approval from Portuguese regulators.
Summers says all designs and equipment requirements are now in place after a lengthy evaluation period. Final funding to complete the work should be secured within weeks, and it is hoped that the Portuguese government will provide significant support through development grants.
