Aurora Cannabis Inc. (NYSE: ACB) got a shot in the arm this week after the German authorities granted it approval to cultivate and distribute medical cannabis in that country. An official statement from the company said it emerged as a winner, along with two other companies, in a selection process conducted by German regulatory agency Federal Institute for Drugs and Medical Devices.
A contract in this regard is expected to be finalized mid-April, based on the outcome of a hearing to be held next week on an appeal procedure. The basis of the selection was concepts submitted by the 79 participating companies on domestic production, delivery, and pricing of cannabis.
Underscoring Aurora’s market-leading position in commercial cannabis production, the concept submitted by the company was adjudged the best – for facility design, quality, security, and logistics. As per the contract, the company will sell the cannabis produced by it to the German government. Then, it will be distributed to pharmacies through wholesalers.
The basis of the selection was concepts submitted by the 79 participating companies on domestic production delivery, and pricing of cannabis
“Having the highest rated concept is a strong validation of the Aurora Standard cultivation philosophy, as well as of our track record in the delivery of safe and high-quality medical cannabis products to the German system. Winning the tender reflects a natural evolution for Aurora, establishing a more prominent local footprint in this important international market with over 82 million people,” said Neil Belot, chief global business development officer.
Aurora plans to set up its indoor cultivation facility at the industrial park in Leuna near Leipzig. It will be designed with additional capacity so as to facilitate future expansion.
With its aggressive growth initiatives in recent months, currently, Aurora has a presence in about 25 countries. In February, the company expanded production to Portugal by acquiring a majority stake in local firm Gaia Pharm Lda. The move came on the heels of European regulators enacting legislation legalizing the distribution of prescribed medical cannabis and their export to other European Union nations.
Aurora’s stock climbed nearly 3% in premarket trading Friday, after closing the previous session higher. The stock has gained more than 70% since the beginning of the year.
We’re on Apple News! Follow us to receive the latest stock market, earnings and financial news at your fingertips
Most Popular
Starbucks (SBUX): A look at the challenges that continue to beleaguer the coffee giant
Shares of Starbucks Corporation (NASDAQ: SBUX) rose 2% on Thursday. The stock has dropped 9% over the past month. The company has faced its fair share of challenges during fiscal
Broadcom (AVGO) thrives on growing AI business. Is the stock a buy?
Broadcom, Inc. (NASDAQ: AVGO), a leading provider of semiconductor solutions for wired and wireless communications, recently impressed the market with upbeat financial outlook highlighting strong prospects for its AI business
After a weak first half, will NIKE (NKE) hit the recovery path this year?
After a prolonged slowdown, NIKE, Inc. (NYSE: NKE) is working on a turnaround plan to regain the brand’s strength. In recent years, the sneaker giant’s overall performance has not been
