Drawing from expert insights, the report – From Containment to Nurturing: How the UK can become a world leader in cannabinoid innovation – was commissioned by The Centre for Medicinal Cannabis and the Association for the Cannabinoid Industry.
The report argues for the UK government to recognise the UK’s legal cannabis market, and to create a public policy and nurturing regulatory framework to foster its growth.
Highlighting that millions of Britons routinely purchase cannabis products as medicine and food supplements, it stipulates that the UK has the opportunity to harness its global strengths in life sciences to become a world leader in medicinal and nutraceutical cannabinoid innovation by adopting the report’s proposals and recommendations.
Authored by regulatory thinker Professor Christopher Hodges, the report will be launched with a speech by George Freeman MP, Minister for Science, Research & Innovation – the first ever ministerial address to the legal cannabis sector.
Included in the recommendations are calls for updates to hemp farming rules, modernisation of the Proceeds of Crime Act and the creation of a national patient registry for all cannabis based medicines prescribed in the UK.
Stewarding a new industry
The report draws on inputs from leading industry players, academics, patients, consumers and investors, and its authors state that regulations are critical issues in order to help set the UK apart as it decides the economic and political path it wants to adopt post-Brexit.
Hodges argues that the regulatory framework he sets out would achieve three important objectives:
● Global competitive advantage for the UK post-Brexit, helping the country to leverage its historic and economic strengths in a rapidly growing and unprecedented global industry
● Regulatory best practice giving early mover advantage, helping to pioneer new approaches to regulating a novel industry that other jurisdictions on a similar path can choose to emulate
● Scientific advances and innovations, with pioneering new treatments, manufacturing methods, and end user product innovations, helping the UK to reinforce its reputation as the home of world-leading inventions and discoveries that improve our environment, our health, and quality of life.
The report views the cannabinoid sector through the lens of Outcome-Based Cooperative Regulation, arguing that for regulations to be effective, they need to be based in trust and collaboration. It also urges the Government to establish a ‘stewarding’ authority to govern and guide the sector and implement the required reforms.
Professor Christopher Hodges, Emeritus Professor of Justice Systems at the Centre for Socio Legal Studies at the University of Oxford, commented: “The analysis in this report and the principles we have outlined lead us to recommend a series of policy changes to help bring about the positive and shared goals that we articulate.
“The recommendations are directed both at regulators and industry, with the understanding that both parties have an obligation to co-operate to steward this new industry and support it to develop in an innovative but also safe and responsible way.”
Key objectives of the report include:
- To build a strategic engagement with government and associated agencies – move from containment to nurturing
- To establish a footprint / landing zone for the sector within government i.e. Department for Business, Energy and Industrial Strategy (BEIS)
- To establish a new coherent regulatory framework for CBMPs and consumer cannabinoids in the UK
- To optimise the potential public funding opportunities for the sector
- To align ourselves with current government thinking with regard to future regulation
The UK has a global cannabinoid leader
With cannabinoids making up a rapidly accelerating global industry, the report highlights that the UK holds an advantage in that it can learn from the successes and failures of other comparable regimes.
It also states that Brexit has given the UK the “freedom to choose to align or differentiate itself from the markets with which it is competing” such as hemp cultivation and CBD regulation.
Addressing the country’s potential to be a sector leader, the report encourages the creation of a UK ‘Centre of Excellence’ to advance the evidence base for cannabinoids and their applications, which it says could be established with the support of major universities.
Whilst the UK has set out its Life Sciences Vision, aiming to make the country a global leader in the sector post-Brexit, the report highlights how the cannabinoid sector can help accelerate this ambition.
Ir recommends that an incubator and cannabinoid innovation fund for UK pilot studies is created in areas aligned with the government’s R&D strategy to support key areas like life sciences and new agri-tech opportunities.
“By adopting the proposals and recommendations laid out here, the UK can inaugurate a timely opportunity to harness its global strengths in life sciences to become a world leader in medicinal and nutraceutical cannabinoid innovation,” state Steve Moore and Paul Birch, co-founders of the CMC and ACI.
Attracting investment into the UK
With the government having neglected to provide the right regulatory and grant support, the report highlights that those working in the sector feel restricted and shut out of policy engagement. It notes this has led to a situation whereby the UK’s sector is struggling to “find its feet” in the international market.
The recommendations in the report intent to provide a vision that “moves beyond a policy of control and containment to one of support and stewardship”. As well as helping to advance scientific discovery and innovation, and improve well-being, this will also help to create jobs and investment in local economies.
One recommendation that address this issue is modernising the Proceeds of Crime Act, which currently prohibits dealing with any benefit arising from criminal conduct, even when that activity occurs abroad if that same activity would be illegal if it occured in the UK.
This is a step that has already been taken on the island of Jersey, where people are permitted to do business in the cannabis sector as long as it is legal where it is taking place.
The report suggests that the UK’s Proceeds of Crime Act should be updated to create an explicit exemption for private enterprise by entities operating in legal jurisdictions – modelled on the changes already incorporated into law in Jersey.
The report states: “The seeds are there for rapid growth but it cannot happen without a clear strategy built upon co-ordinated government stewardship and the ambition to not just tolerate, but actively nurture the sector to expand and mature, so it attracts more investment, jobs and innovations, and secures political support and public recognition.”
It goes on to say: “Until such time as the POCA regime is clarified to exempt the owners and operators and those who gain (including shareholders) from the activities of legal companies in the UK, major institutional investors will be deterred from committing to the sector.”
Blair Gibbs, Senior Associate, Centre for Medicinal Cannabis/Association for the Cannabinoid Industry, commented: “Our conclusion from this research is not that the UK’s legal cannabis sector is over-regulated, or merely suffering from outdated rules, or simply needs red tape and unwarranted regulations to be stripped back.
“The regulations encompassing the cannabis sector are wide-ranging and complicated, but right now are also uncalibrated to the risks associated with each product.”
The report has also recommended that GP are enabled to prescribe medical cannabis. To find out more about this recommendation please visit our sister site: www.cannabishealthnews.co.uk.
Cross-party group established for recreational cannabis in Europe
#LegaliseitEP is focusing on human rights-based cannabis policy – “it is a matter of freedom”.
The group, made up of MEPs from five different parties, has formed to facilitate discussions around amending policy for the personal use of cannabis in Europe.
As countries such as Malta, Germany and Luxembourg have announced progressive amendments to cannabis policy, the informal interest group is supporting human rights-based policies for the personal use of cannabis.
The group is made up of the MEPs Luke Flanagan of Ireland, The Left; Mikuláš Peksa of the Czech Republic, Greens; Monica Semedo of Luxembourg, Renew; Cyrus Engerer of Malta, S&D; and, Dorian Rookmaker of The Netherlands, ECR.
In an open letter to 705 members of the European Parliament, the group states that Member States should have the autonomy to create cannabis policy that reflects the needs and specificities of their society.
As well as encouraging the MEPs to join the group, the open letter also calls for more information sharing between Member States regarding recreational cannabis and for fact-based discussion on cannabis, which the group says has been subject to misinformation for a long time.
The letter states: “Due to outdated and unpredictable patchwork of legislation, citizens across the EU are often finding themselves being forced to turn to the black market or even worse, imprisoned for being in possession of small amounts of cannabis for personal use. This does not reflect the level of freedom we have come to expect from living in Europe.
“We cannot deny that with new legislation coming forward within EU Member States, we are likely to find ourselves facing repercussions at an EU level. As MEPs, we want to build on this momentum and create a cross-party interest group within the European Parliament, where we will share best practices, talk to experts, organise hearings and conferences, as well as debate the situation of personal use of cannabis within the Union.”
Monica Semendo, of Luxembourg’s Renew, stated: “I am in favour of the legalisation of cannabis and cannabis products because it is a matter of freedom.
“It’s a matter of one’s own choice. And if someone decides to consume cannabis, they should have access to a safe product.
“We have to focus on transparent information, education programmes and risk reduction, especially for young adults.”
Cyrus Engerer of Malta’s S&D, stated: “People should have the right to take autonomous informed decisions about their lives, including whether or not they use cannabis.
“Let’s talk basics. No one should go to jail over a joint. And now for some real talk – many people still are.
“Where I come from – Malta – we are the first European country to fully legalise cannabis use Germany, and Luxembourg will soon follow it. It’s time that we talk about cannabis and our personal freedoms and rights.”
Hear what the founding members of #LegaliseitEP have to say about why they’ve decided to launch a cross party @Europarl_EN interest group on #Cannabis & #CannabisLegalisation @lukeming @RookmakerDorien @MonicaSemedoLux @vonpecka @engerer pic.twitter.com/b20NDFOAmg
— Legalise It EP (@LegaliseIt_EP) July 14, 2022
Greenrise welcomes cannabis policy developments in Germany
The company is preparing for the potential legalisation of adult-use cannabis in Germany.
Greenrise Global Brands has welcomed recent developments in Germany as it awaits guidelines from the German Government in the coming months.
Germany’s “traffic light” coalition made plans to legalise recreational cannabis official in November 2021 with the publication of its agreement.
The coalition, which includes the Social Democratic Party of Germany (SPD), the Free Democratic Party (FDP) and The Greens, agreed to legalise the controlled distribution of cannabis to adults for “pleasure purposes”. With a focus on health-oriented cannabis policy, the development aims to move consumers away from the black market, control quality of products and ensure the protection of minors.
This year, five hearings are planned throughout to discuss the legislative process on the controlled supply of cannabis to adults for recreational purposes, with the first meeting being held in June, at the Federal Ministry of Health.
The Federal Government is anticipated to submit a draft law to Parliament (Bundestag) by the end of 2022.
Greenrise Global, which has a wholly-owned medical cannabis subsidiary, AMP Alternative Medical Products GmbH that imports EU-GMP medical cannabis from within the European Union and elsewhere and has well-established relationships with pharmacies and clinics across Germany, has welcomed the development.
Supporter of the health benefits of cannabis and a keystone shareholder and director of Greenrise, as well as co-founder of CannaCare Health, Frank Otto, commented: “The consultation process shows that Germany is no longer talking about whether to legalise adult-use, but how.
“We also believe that there will be a domino effect as European countries are watching very closely as Europe’s largest economy joins Canada and California in legalising cannabis for adult use.”
AMP Alternative Medical Products has reported that preliminary unaudited sales for first half year 2022 increased 14 per cent to €268,479 compared to sales of €236,399 during the first half year of 2021.
Greenrise acquired 51 per cent of CannaCare, which sells CBD wellness products through traditional retail channels in Germany and German-speaking markets in Europe, at the beginning of Q2. The company has reported that preliminary Q2 unaudited sales for CannaCare increased 187 per cent to €474,000 compared to Q1 2022 sales of €165,000.
Managing director of AMP and director of Greenrise, Dr Stefan Feuerstein, said: “The exceptional sales growth from CannaCare during the second quarter confirms our strategy of investing in CBD in addition to medical cannabis as we prepare for the potential legalisation of adult-use in Germany.
“We look forward to the government providing guidelines in the coming months, which will provide certainty on how and when to position our businesses.
“We expect pharmacies to play a significant role and are preparing our pharmacy customers for the possibility of selling adult-use products as well as soon as legislation is in effect. We also realigned our medical cannabis business by streamlining our medical sales team, offering more pharmaceutical cannabis products to doctors to prescribe and are preparing to import high-THC flowers from several European cultivators.”
CFO of CannaCare, Dr Tilman Spangenberg, commented: “Greenrise’s investment allowed CannaCare to launch its CBD products in three leading German drugstore chains, which dramatically increased sales in a very short period of time.
“We expect the full impact of this sales channel to unfold in the third as well as fourth quarter. Our priorities for the remainder of this year are to grow CannaCare’s sales and operating cash flow positive by introducing new sales channels and adding additional drugstore chains.”
Switzerland’s amendment on medical cannabis comes into force
The Swiss government announced in June that rules for medical cannabis will be simplified.
Today, 1 August 2022, Switzerland’s amendments to its Narcotics Act come into force, which will allow patients in the country easier access to medical cannabis.
Switzerland has now joined a number of countries across Europe that are enabling patient access to cannabis by removing its ban on the medicine.
Previously, Switzerland’s Federal Office of Public Health (FOPH) required exceptional approval for use of medical cannabis. This reduced patient access to cannabis as administrative processing was unable to keep up with the demand from potential patients.
The use of medical cannabis will now be subject to regular control measures. The defined limit of at least 1.0% total THC content remains unchanged.
Under the new amendments, medical prescriptions will no longer require an exceptional permit from the FOPH. Cannabis will be reallocated from Switzerland’s Narcotics List Ordinance list from List d, which is prohibited narcotics, to List a, which is all substances subject to control measures), along with preparations such as extracts, resins, oils and tinctures.
Dronabinol and THC will now also be included List a “provided there is an intended medical purpose”.
The new amendment enables doctors to make the decision on whether a patient requires a medical cannabis prescription, speeding up the process of accessing the medicine for patients.
The medicine will now enter Switzerland’s pharmaceutical system and controlled by the health authority SwissMedic, which will be taking over the role of the country’s Cannabis Agency for the cultivation of medical cannabis.
Under the amendments, there will be a two-stage authorisation procedure, which will require an establishment licence and an individual licence for the cultivation of medical cannabis.
SwissMedic has stated that the handling of cannabis for non-medical purposes continues to be generally prohibited and will continue to require an exemption from the FOPH.
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