Canada-headquartered global medical cannabis company Tilray Brands is expanding cultivation across Canada and Europe, the company said Thursday.
Tilray says it’s increased annual production capacity to about 275 metric tons, up from 210, to serve growing international and medical cannabis markets.
The expanded output comes from both its Canadian facility, located in Quebec, and its EU-GMP-certified facility in Portugal.
The increased cannabis production is intended for burgeoning international cannabis markets in Europe, Australia and other regulated markets.
What’s driving Tilray’s European cannabis expansion?
The move comes as North American cannabis companies increasingly invest in European markets, where medical programs in Germany, the United Kingdom and elsewhere continue to expand.
Tilray is now shipping Quebec-grown bulk cannabis directly to its sites in Portugal and Australia, the company said.
In a nod towards Europe’s expanding cannabis market – and that region’s stricter product quality control standards – Tilray said the Quebec facility is on track to earn EU-GMP certification within the next 12 months.
“Tilray is defining what global leadership in cannabis looks like,” Tilray CEO Irwin Simon said in a statement.
“As demand accelerates, Tilray is leading with scale, discipline and a differentiated international platform built for long-term growth.”
What other cannabis companies are making a play in Europe?
Executives across the cannabis sector have pointed to tightening regulatory standards and rising patient demand in Europe as reasons to build out Europe-compliant supply chains and distribution abroad.
Aurora Cannabis offered a fresh example of that trend this week when it paid 2.1 million pounds ($ 2.8 million) in cash to acquire two UK businesses:
- Internod Pharma, a licensed importer and wholesaler
- HAP Pharma, a licensed pharmacy,
“We believe this transaction will allow us to fully leverage our operational, commercial and regulatory expertise to expand our market share,” Aurora Executive Chairman and CEO Miguel Martin said in a statement.
Martin said the deal would support a “consistent and reliable supply of high-quality medical cannabis products to UK patients.”
Aurora is looking for future investment opportunities to increase its distribution capacity in the UK, Martin said.
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For Tilray, the Portugal site anchors its European supply chain, feeding Germany, the UK and other markets.
In Germany, the company said its Aphria RX facility is “fully utilized,” and its new ARX brand has launched with strong early patient response.
Tilray Medical supplies patients, physicians, hospitals, pharmacies, researchers and governments in 20 countries, according to the company.
