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Denmark Pilot Program & If the Government Interferes

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Denmark isn’t the most liberal country when it comes to weed, but that doesn’t mean it’s not moving progressively. Recent data from the country shows a rising medical cannabis industry, with huge growth within the last five years. How much of this is related to the Denmark medical cannabis pilot program, instituted in 2018? And why does it look like the government might be interfering with the program’s progress?

Cannabis laws in Denmark

In Denmark, the sale and production of recreational cannabis is illegal. Cannabis laws are governed by the Consolidated Act on Controlled Substances, which was instituted in 2016. It’s illegal to do any of the following: importing/exporting, sale/receipt/purchase, production/processing, cultivation, and possession. Use is the only part not mentioned, but it’s hard to use something you can’t obtain.

Breaking the law can result in fines, and prison time up to two years for smaller crimes. Most law enforcement only give a fine for small amounts. However, when a certain quantity of an illegal drug is transferred (for cannabis its 10kg), or there’s expected intent to transfer, it gets enforced under section 191 of the country’s criminal code as a trafficking crime. This can result in prison sentences of 10 years, but can go as high as 16 years.

Denmark did make a medical allowance back in 2011. It allows for pharma medications like Sativex, Marinol and Nabilone, the three of which were approved in 2011, and require a prescription. The allowance does not account for the actual plant, though. And in order to get your hands on flower, you can only do that in Denmark via its medical cannabis pilot program, which started in 2018. The pilot program was initially scheduled for four years, but Denmark since lengthened it to go to 2025.


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The reason Denmark made the program is to assess the usefulness of medical cannabis in natural form. The program enables doctors to prescribe cannabis flower to patients, rather than finished products. Since the beginning of the program, the number of prescriptions tripled in the country. How much the increase is tied to the popularized idea of medical cannabis, and how much to the pilot program itself, is hard to say. The program led to the need for locally grown weed, as its existence began with imported product only.

In terms of CBD, in 2018 there was an amendment made to the country’s Executive Order on Euphoriant Substances, which removed products with less than .2% THC, from classification as euphoriants. This helped the CBD market take off. It’s not completely free to use, however, and undergoes regulation from two agencies: the Danish Medicines Agency, and the Danish Veterinary and Food Administration (DVFA).

5 years in – how’s the pilot program working now?

Medical cannabis sales in Denmark, as per MJBizdaily, steadily increased after the pilot program began, though they leveled out in 2022. The Danish Health and Medicines Authority recently released data which shows growth of sales to 64.3 million krone in 2021 ($6.1 million), from a previous 30.8 million krone in 2016 (~$4.4 million by today’s standards). In 2022 it stabilized at 62.5 million krone (~$6 million). That’s over a 100% gain over the last five years.

The data covers all four ways of medical cannabis purchase, not just the pilot program, which accounts for one. The other three are magistral preparations (preparations made in pharmacies) which contain pure THC or CBD; approved pharma products that can be marketed, which include drugs like Sativex; and unapproved pharma products that cannot be marketed. In 2022, the pilot program – the only way to get flower, accounted for only 14% of these sales, which was 8.7 million krone.

Two of the other three categories saw greater sales. Comparatively, magistral preparations brought in 25.5 million krone in 2022, which accounted for 40% of the medical sales. This was the biggest chunk, though approved pharmaceutical products were close behind with 24.2 million krone in sales. The pilot program did beat out unapproved pharma products, which brought in 4.1 million krone for 2022.

The data does show a slight lean away from pharmaceutical products, as magistral preparations and the pilot program brought in slightly more than the pharma products. Together the non-pharma products brought in 34.2 million krone, compared to pharma products which brought in a total of 28.3 million krone for the year. This is rather close, though.

Denmark pilot program for flower and oil
Denmark pilot program for flower and oil

The pilot program did better originally, with a peak in the second quarter of 2019. At that time, it got up to about 40% of the medical sales. However, after this it leveled off, and never showed the same ability again. By the end of 2022, it was at 16% of all medical sales, and has stayed at about that point, since that time. So though sales increased hugely with the start of the pilot program, most money that comes in, isn’t from the pilot program. Which makes for interesting, and inexplicable data.

What keeps the Denmark medical cannabis pilot program from doing better?

It doesn’t make sense, or at least goes against what we see in America, and other legalized places. Generally speaking, sale of flowers, or other non-pharma products, far eclipse pharma sales (which in 2021 meant $943.5 million globally compared to 22.5 billion for the total cannabis market). It should be remembered medical industries have been around years longer, and yet only pale in comparison. As not one legal recreational market is open yet in Europe, its not possible to say if Denmark’s preference through sales, is related to a cultural desire to go towards pharmaceutical, or simply a lack of options.

It seems the government itself might be what stands in the way of progress when it comes to non-pharma products. This was explained by Morten Snede, the CEO of Helsinge’s medical cannabis company Medican. He told MJBizDaily via email, “The Danish Medicines Agency has been very, very, very slow in the product approval of new products so the availability of alternative products to Bedrocan has been close to zero.”

MJBizDaily had already reported in 2020, that at that time (two years in), only eight of 63 applications were approved. The government simply isn’t letting in products to the program. Even as of 2023, this has not changed. Currently there are all of eight products available, from just a handful of companies; meaning the grand majority were denied or never answered. The pilot study site denies this, making it sound as if companies simply aren’t applying, but this seems questionable at best, and would indicate that between 2020 and 2023, no new product producers wanted in. Unlikely.

Snede brought up another interesting point that might help push consumers more toward pharma products. The different product types come with different reimbursement amounts for users. Those using the pilot program can only get up to 50% of the cost back (though terminally ill get 100%). Reimbursement for the other tracks can be higher for regular patients, meaning for many users, it makes more sense to go with the more cost-effective method.

How would the pilot program compare if more products were allowed in, and the same reimbursement amount given? Can’t say for sure. Right now it looks like the Danish government is trying hard to make sure users go for pharma products over those made by other companies. It seems the pilot program might have been used to popularize the idea of a program for regular weed, but that the regulation within works to push people toward pharmaceutical options. Perhaps I’m incorrect, but that quick rise and fall is usually attached to a gimmick; and in this case it looks to be bait on a hook.

Christiana, Denmark, from above
Christiana, Denmark, from above

Christiana

While Denmark as a country slowly wades into the world of cannabis; its concurrently home to one of the most cannabis friendly places in the world – Christiana. Christiana isn’t a city, but an enclave within Copenhagen, in a borough called Christhianshavn. It’s home to about 1000 residents, and has its own flag, currency, and even a sign to remind those entering that “You Are Now Leaving the European Union.”

Christiana came into existence in 1971, when a military base was taken over by a bunch of artists and hippies. They claimed they didn’t operate by Danish law, and for the most part, have remained a free town since that time; though not without some legal back-and-forth. It got so charged that in 1989, a legal change was made. At that time the Danish parliament passed a law allowing Christiana to go on operating. This was repealed in 2013, but replaced by land deals to allow Christiana residents to buy their properties.

Though it is technically under Danish law since 2013, nothing changed, and Christiana goes on with what it was known for from the beginning, a place for open drug sales. Though this open drug market exists, it bends to the softer end, and is generally against hard drugs like heroin. The main road is Pusher Street, where, to this day, stalls are set up for the sale of substances not legal in the rest of the country.

Conclusion

The medical cannabis industry of Denmark shows that people sure want their drugs medically. But it also shows that when the government gets in the way, sales go in the direction they’re pushed. If the country really wants to know what people prefer, it would put products on a level field. Right now, all information on the pilot program in Denmark and what it can provide, might be corrupted by the government pushing for pharma sales over other sales.

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Astronauts to Test Cannabis Growth in Outer Space

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NASA‘s recent collaboration with the International Space Research Consortium to launch a mission testing the cultivation of cannabis in the microgravity of space has stirred a whirlwind of interest and controversy across the globe. This initiative aims to unravel the mysteries of how low-gravity environments affect plant growth, with cannabis serving as the pioneering subject. According to Dr. Alfred Terra, the esteemed lead scientist spearheading the project, the conditions in space present an “unparalleled opportunity” to push the boundaries of our understanding of botany and its applications in medicine and agriculture beyond Earth’s confines.

This ambitious endeavor aims to shed light on the potential for utilizing space-based agriculture to support long-duration space missions and future colonization efforts on other planets. The choice of cannabis as a research subject is particularly intriguing due to its complex biochemical makeup and its increasing use in medicinal therapies on Earth. Insights gained from how cannabis adapts to space’s harsh environment could lead to breakthroughs in growing food and medicinal plants in extraterrestrial colonies.

Despite the scientific excitement surrounding the mission, the announcement has been met with its share of skepticism and criticism. Some members of the scientific community and the general public question the allocation of resources toward cannabis research in space, arguing that more pressing scientific and exploratory questions merit attention aboard the International Space Station (ISS). These critics call for a focus on projects that directly contribute to our understanding of space travel’s impacts on human physiology or further our knowledge of the cosmos.

However, the space agencies involved have been quick to highlight the broader implications of this research. They argue that studying cannabis growth in microgravity could offer invaluable insights into plant biology, stress responses, and the possibility of cultivating a variety of crops in space, which are crucial for the long-term sustainability of space exploration and eventual human settlement on other planetary bodies.

Amidst the debates over the mission’s merits and the speculation spurred by its announcement date—April 1st—lies a deeper curiosity about the future of space exploration and the role of innovative agricultural research in that journey. The timing has led some to question the announcement’s authenticity, pondering whether it could be an elaborate April Fool’s Day jest aimed at sparking discussion or simply a coincidence that has amplified the public’s fascination with the project.

Whether viewed as a bold step into the future of space agriculture or a controversial choice of research focus, the mission symbolizes a growing intersection between space exploration and the quest to understand and utilize biological processes in unprecedented environments. As the launch date approaches and preparations continue, the world watches, eager to see what insights this venture might unfold about cannabis, plant science, and the potential for life beyond Earth.

*** This article is an April Fool’s Day joke ***



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A Hiring Wave on the Horizon

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The U.S. cannabis industry is on the brink of a significant hiring wave in 2024, spurred by a 12% increase in legal sales in 2023, reaching $29 billion. This growth, alongside potential federal reclassification of cannabis, is expected to create up to 100,000 new jobs, particularly in the retail sector, where 93% of companies plan to expand their workforce. The Vangst 2024 Cannabis Salary Guide highlights an industry ready to bounce back from previous economic stagnation, with a strong emphasis on experience, adaptability, and cultural fit in prospective employees.

The cannabis sector is poised for a massive expansion in employment opportunities in 2024, following a year of economic challenges and layoffs. This optimistic forecast comes from Vangst’s latest industry salary guide, which anticipates a hiring boom driven by increased legal cannabis sales and the potential for federal rescheduling. The anticipated move to reclassify cannabis to Schedule III could significantly reduce tax burdens, increase company valuations, and attract more investors, according to Viridian Capital Advisors.

Retail cannabis companies are at the forefront of this hiring surge, with nearly all surveyed indicating plans to bolster their teams in response to growing demand and market expansion. The focus is not just on filling positions but on finding candidates who can navigate the evolving legal and market landscape, prioritize cultural fit, and possess strong communication skills over traditional qualifications.

Salaries in the cannabis industry have also seen an uptick, with top-end wages growing by 4.7%, outpacing the national non-cannabis average. However, the sector still trails behind others in offering comprehensive benefits packages, a gap that affects employee satisfaction and retention. The demand for health insurance and better work-life balance is clear among job seekers in the cannabis space.

Diversity and inclusion are gaining traction within cannabis company hiring practices, with a significant portion of companies implementing strategies to create a more inclusive workforce. The industry’s employment of veterans and individuals with disabilities highlights its diverse nature, but there remains room for improvement.

Why It Matters: This hiring wave marks a pivotal moment for the cannabis industry, signaling a shift towards recovery and growth after a period of stagnation. It underscores the industry’s resilience and its potential to contribute significantly to the economy through job creation and increased sales.

Potential Implications: The anticipated hiring boom in the cannabis industry could lead to wider acceptance and normalization of cannabis use, further influencing policy changes and societal attitudes. Additionally, the focus on diversity and inclusion could set a precedent for other sectors, promoting a more inclusive workforce across industries.

Source: Green Market Report



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86% of Californians Support Legal Cannabis Markets

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A recent survey conducted by the California Department of Cannabis Control (DCC) and FM3 Research reveals that a significant majority of Californians, 86%, believe it’s important to purchase cannabis from legal markets. The survey also indicates growing support for Proposition 64 and highlights the need for consumer education on legal cannabis procurement.

California, a pioneer in legalizing medical cannabis in 1996 and later adult-use cannabis in 2016, has developed into the world’s largest cannabis market. The DCC’s Real California Cannabis Campaign, aimed at guiding consumers to licensed dispensaries, commissioned FM3 Research to survey over 1,000 California adults to gauge their attitudes towards the state’s cannabis market. Key findings include:

  • 62% view Proposition 64 positively, suggesting increased support for cannabis reform.
  • 86% of respondents stress the importance of buying cannabis from legal sources.
  • 72% feel consumers should ensure they’re purchasing from licensed retailers.
  • Despite the legal market’s size, illegal sales remain prevalent, with two-thirds of cannabis sales in 2022 coming from the illicit market.
  • The California Unified Cannabis Enforcement Taskforce (UCETF) reported significant seizures in 2023, including over $312 million in illegal cannabis and 119 firearms, showcasing efforts to combat illegal operations.
  • The survey uncovered education gaps, with 85% of respondents in areas where retail cannabis is banned either misinformed or unaware of local cannabis laws.
  • Opinions on identifying licensed retailers were divided, with 44% finding it easy and 42% finding it challenging.

Why It Matters: This survey underscores the growing acceptance of legal cannabis markets among Californians and the critical role of consumer education in supporting legal operations. It highlights the ongoing battle against illicit sales and the importance of regulatory efforts to ensure a safe, legal cannabis market.

Potential Implications: The findings could influence future cannabis policies in California, emphasizing the need for public education campaigns and stricter enforcement against illegal operations. It also suggests a potential shift in consumer behavior towards supporting legal cannabis sources, which could further legitimize and stabilize the legal market.

Source: High Times



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