Tilray expects GMP approval, cannabis sales from Portugal this summer season

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Tilray’s facility in Portugal is expected to obtain Fantastic Manufacturing Practice (GMP) certification in the coming months, which the Canada-primarily based cannabis enterprise says will open the door for the very first shipments from its European facility as early as this summer season.

Monetizing European demand for health-related cannabis is core to the tactics of lots of publicly traded cannabis firms, and Tilray – along with Canadian rivals Aurora Cannabis and Canopy Growth – is in a race to tap that industry.

A crucial for all 3 firms to make worldwide inroads is reaching EU-GMP certification, the accepted seal for international high quality compliance.

But as opposed to its rivals, which are preparing to commence sales from their facilities in Denmark this year, Tilray is banking on reduced-price Portugal. (Aurora plans to open a facility in Portugal by way of a joint venture, but no sales timeline has been disclosed.)

Tilray – sporting a industry capitalization in excess of $six billion – reported international sales of only $two.9 million in 2018.

Investors count on these figures to improve considerably to justify the company’s valuation.

Demand for health-related cannabis in Germany, for instance, has soared. Well being insurers in the nation covered 73.7 million euros ($83.7 million) worth of health-related cannabis merchandise final year.

Tilray’s “European campus” in Cantanhede, Portugal, is crucial to its development strategy.

“We have begun production at Tilray Portugal with a view toward facilitating exports of our cannabis merchandise to nations in the European Union from Portugal rather than from Canada,” the enterprise noted in a regulatory filing with the U.S. Securities and Exchange Commission this week.

Tilray mentioned it was awarded a license to cultivate, import and export bulk health-related cannabis in July 2017 by the Portuguese National Authority of Medicines and Well being Goods.

“The 60-acre campus involves a 65,000-square-foot outside cultivation plot, which was harvested in the fall of 2018, a 108,000-square-foot greenhouse with a very first harvest completed in February 2019, and a 66,000-square-foot manufacturing facility with an anticipated completion date in the early aspect of the second quarter of 2019,” the filing stated.

“Tilray Portugal will serve as our main provide supply for sufferers in the European Union that have access to cannabis-derived merchandise. Locating cultivation and manufacturing operations in the European Union benefits in less difficult and extra price-productive production and distribution.”

In a conference get in touch with with investors in mid-March, Tilray CEO Brendan Kennedy mentioned item from the Portugal facility will be utilized to meet demand in nations about the planet.

“We will not sell item from Portugal till later on this summer season, so you will see inventory accumulate from there in anticipation of our GMP inspection so we can export to other nations about the planet,” Kennedy mentioned.

“As we’re in a position to sell that item, which is extra in the second half this year, that’ll expand the margins,” Chief Economic Officer Mark Castaneda mentioned.

Tilray trades on the Nasdaq below the ticker symbol TLRY.

Matt Lamers can be reached at [email protected]

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