The Althea Group Holdings Ltd (ASX: AGH) share price is climbing higher today. This comes after the company released an update regarding its products being approved for sale and distribution in Germany. During market open, shares in the medicinal cannabis company hit an intra-day high of 50.5 cents. However, the Althea share price has fallen back a tad at 48 cents, up 2.13%.
What’s moving the Althea share price
The Althea share price is marching higher after the company reported that it has been granted all necessary licences for sale and distribution of its products in Germany.
The Federal Institute for Drugs and Medical Devices (Bundesinstitut für Arzneimittel und Medizinprodukte) approved the permits.
Althea said this was a significant milestone, noting it would become the first commercial supplier of Australian-made medicinal cannabis extract products. With the licences now granted, the company will work with its distribution partner, Nimbus Health GmbH to advance the application for import and export permits.
Althea anticipates its first shipment of 2,000 units to Nimbus to take place in December. Payment for the products along with 50% of net profit of sales is expected to be received in due course.
Nimbus will adopt the same sales strategy that has been used on Althea’s products in Australia and the United Kingdom. Supporting the launch in Germany, in-field sales teams will be created alongside its famed Althea concierge platform.
What did management say?
Althea CEO Joshua Fegan welcomed the news, saying:
We are very pleased that all relevant licenses have been granted. This will now allow Althea to focus on the sale and distribution of our products in the German market through Nimbus. We expect to see rapid uptake given Althea’s reputation and Nimbus’ established market presence in Germany.
Nimbus founder and CEO Linus Maximilian Weber, added:
We are very pleased that Nimbus is the first distributor bringing Australian-made extracts to patients in Germany and will further increase the value of cannabis-based medicines in country.
Althea noted that the German market represented a significant opportunity for the company to invest in. The country has a population of 83 million and an estimated medicinal cannabis market of €1.5 billion (A$2.44 billion) by 2025.
Althea believes that its partnership with Nimbus puts it in a good position to become Germany’s leading medicinal cannabis brand.
Althea share price summary
The Althea share price has been staging a late-stage recovery for 2020. Shares in the company reached a 52-week high in September of 67 cents, before settling back in the 40-cent range.