The CBD.fr team has translated the FINANCIAL POST article into French for your convenience… you will find the origin of this article written by Market One Media Group.
The summary
- EXMceuticals on the ground in Portugal
- Portugal is on its way to becoming 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 is preparing 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 establish a stronger presence in this market.
By Don Hauka
- Portugal is investing 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 exploiting this European market and is currently creating an industrial-scale, GMP, pharmaceutical-grade extraction and refining facility in the European Union, near Lisbon, Portugal.
- EXM's existing, 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' ships like Vasco da Gama 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 health sector in Portugal is a driving force of the country's economy. According to the Portuguese government website, "investments in R&D have increased by approximately 128% over the last 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 hosts a dynamic and innovative R&D ecosystem, supported by several scientific and technological institutions present throughout the value chain of the health and pharmaceutical sector, including clinical trials."
Despite this, the country faces the challenge of managing an aging population in the era of COVID-19. But it also has the opportunity to play a leading role in the pandemic response by developing biotechnologies that identify pathogens and increase diagnostic capacity.
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 sector, Portugal is now the gateway to the EU.
EXMceuticals on the ground in Portugal
EXMceuticals Inc. (CSE: EXM | FSE: A2PAW2) is about to enter this golden age. 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.
The company already has a substantial footprint in Portugal, with a licensed cannabis R&D facility and pilot refinery in Lisbon, coupled with an industrial-scale, commercial, GMP-pharmaceutical grade extraction and refining facility under development nearby.
EXM obtained 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 approval has positioned EXM to take advantage of 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 have said yes, of course, we will do it," says Summers.
"We hope to make our first commercial deliveries by the end of the third quarter of next year."
Portugal is on its way to becoming a cannabis powerhouse
EXM's timing is important, as Portugal is poised to become a powerhouse of 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. Furthermore, it is expected to overtake the Netherlands as Europe's largest cannabis producer by the end of 2020 if current growth rates continue.
This positions EXM as the partner of choice for all extraction, refining and purification needs of the local and international market wishing to enter the EU-GMP medical market.
“The beauty of Portugal is that there will be a lot of domestic culture there and we can use that as a base to export to the rest of Europe, like Germany, and the rest of the world, relying on such high standards. Europe offers a fantastic opportunity,” Summers notes.
How big is the opportunity? Recently valued at around 240 million euros ($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 over €500 million has been invested in European cannabis companies.
EXM wins a grant for COVID-19 research
Another factor working in EXM's favor is the financial support from the European Union and Portugal for cannabis-based medical research. A consortium led by the company recently received a record €320,000 COVID-19 research grant from the European Regional Development Fund and the Portuguese government; EXM is working with the University of Coimbra to develop disinfectants to combat the COVID-19 pandemic.
Summers says one possible application is to use terpenes found in cannabis to create filters for reusable masks.
"Rather than these disposable masks that clog sewers and produce 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 simply need to 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 important 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 health 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 be a member of APIFARMA and we are obviously thrilled 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 substantial quantity of various cannabinoid distillates into Portugal from North America with the help of Farmceutica, a major supplier.
These amounts will increase as additional commercial quantities are required. EXM has also entered into an agreement with Econnabis SAS to supply EXM's proposed Portuguese refinery with up to 200 kg of THC . 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.
Summers says the focus on extraction and refining rather than cultivation gives EXM tremendous flexibility with respect to the changing demands and trends of the cannabis wellness market, as well as the ability to acquire raw materials at the best prices and qualities.
"I have absolutely no idea which cannabinoids, or combinations of cannabinoids, customers end up wanting. The machines we are putting 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 the desires and needs of customers with an endless variety of cannabinoid-based products, formulations, and brands created by EXM's operations.
EXM has the license, the facilities, and the team to succeed
The foundation of EXM's footprint is the authorization for cannabis research and development obtained from INFARMED in November 2019. Currently unique in Portugal, this crucial scientific license has enabled EXMceuticals to take a leap forward in its European operations by being able to import, research and refine cannabinoids and cannabis-based ingredients within the European Union for R&D purposes.
The company's research and development laboratory develops cannabis-based formulations for products and operates as a pilot-scale refinery for processing cannabis-derived ingredients. The laboratory is fully equipped and staffed by experienced scientists such as microbiologists, biochemists, and geneticists.
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 the 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.
EXM is preparing to enter the vast, underserved European cannabis market
With the groundwork largely laid, EXM is now poised to penetrate a vast, underserved cannabis market. A recent study forecasts that the European cannabis market will reach USD 36,997.1 million by 2027, up from USD 3,498.1 million in 2019, with a CAGR of 29.6% from 2020 to 2027. This growth is attributed to the upgrading of medical cannabis regulations and the expansion of the cannabis industry.
Meanwhile, EXM continues to consolidate its position in Portugal, which decriminalized the possession and consumption of all drugs in 2001, and cannabis was decriminalized for personal use that same year. However, it was only in 2018 that medical use was legalized. This presented EXM with an opportunity that it seized.
Today, Summers looks eastward with the entire country, anticipating a whole new chapter in their story.
“Portugal has spent a lot of time in its history looking west, not east, so they have an interesting perspective, but they really want to be part of Europe more than anywhere else and they really see themselves as part of European history,” he concludes.
Learn more about EXMceuticals by visiting their website.
Co-founder of CBD.fr
Julien Cordobes is the editor of CBD.fr. Born in 1978 in the Paris region, he first trained in e-commerce before turning to natural health approaches, a dual perspective that now structures his way of writing about cannabidiol: reading the scientific literature as it is, without hardening the conclusions, and presenting it in a language that everyone understands.
He discovered CBD at a time when the French market was developing faster than the information available to it. He acquired CBD.fr in 2022 and then took on editorial responsibility for the blog. Since then, he has published numerous articles covering the daily use of CBD, the interpretation of laboratory analyses, the evolution of the legal framework, and precautions for use.
