Business
Denmark medical cannabis sales mostly on the rise, but pilot program sputters
Denmark’s medical cannabis sales took a breather in 2022 after experiencing consistent growth for half a decade, according to new data from the Danish Health and Medicines Authority.
Overall sales of all medical cannabis products in Denmark grew from about 30.8 million Danish kroner ($7.5 million) five years ago to 64.3 million kroner in 2021, then leveled off at 62.5 million kroner last year – representing a gain of 102% over the whole time period.
The sales data covers the four potential pathways to obtain medical cannabis products in Denmark.
The data shows that sales via the pilot program, which allows the sale of cannabis flower and oil with no proven efficacy, were 8.7 million kroner in 2022, accounting for 14% of medical cannabis sales in 2022.
Consistent with previous MJBizDaily reporting, sales outside the pilot program continued to account for the vast majority of medical cannabis products shipped in Denmark last year.
The category of magistral preparations – which are prepared in a pharmacy and include isolated THC and/or CBD – accounted for 25.5 million kroner last year, or approximately 40% of all sales.
Sales in 2022 of the categories of finished pharmaceutical products with and without marketing authorization were 24.2 million kroner and 4.1 million kroner, respectively.
The data is a reminder for international companies that Europe’s medical cannabis industry tends to be more pharmaceutical and efficacy-orientated, whereas, in North America, the medical cannabis industry, including government regulations, tends to prioritize access and economic opportunity.
“And this is entirely natural, given the stage we (Europe) are at as an industry and in development. The standard here is EU-GMP (production),” Jeppe Krog Rasmussen, CEO of DanCann Pharma, a therapeutic cannabinoids company in Ansager, told MJBizDaily via email.
Pilot sputters
Sales of medical cannabis through Denmark’s pilot program peaked in the second quarter of 2019 – about a year after it started – at 5.7 million kroner and never fully recovered.
In the fourth quarter of 2022, only about 16% of total revenue generated by medical cannabis sales came from the pilot program, government data shows.
That’s down from mid-2019, when transactions in the pilot represented roughly 40% of the country’s total sales.
Morten Snede, CEO of Medican, a medical cannabis company headquartered in Helsinge, suggested one of the reasons for the low uptake of the pilot was that Danish authorities are slow to approve new cannabis products.
“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,” he told MJBizDaily via email, referring to the Dutch medical cannabis company.
MJBizDaily previously reported that, as of 2020, only eight of the 63 applications to admit products to Denmark’s medical cannabis trial scheme had won approval from regulators.
Currently, only eight medical cannabis products have approval for sale within the pilot program by six producers, including Canada’s Aurora Cannabis, the Netherlands’ Bedrocan and Australia’s Little Green Pharma.
Snede also notes that the different reimbursement rules in Denmark for the four tracks factor into patient uptake, adding that the pilot program is limited to a maximum reimbursement of 50% of the cost, or up to 20,000 kroner ($2,880) per year.
“The result is most patients cannot afford to continue the treatment during the year,” he said.
“With the other tracks, reimbursement can be much higher.”
Some industry players are optimistic the pilot, which was extended to 2026, still has better days ahead.
Peter Emil Sigetty, CEO of Valcon Medical A/S – a medical cannabis producer located in the greater Copenhagen area – said he expects to see growth in the pilot program throughout this year and “especially” in 2024.
“There has only been a very limited number of products available under the pilot program in the past five years,” said Sigetty.
“It takes time to register a product in Denmark, and the quality requirements are high.”
Challenges
Fleta Solomon, CEO of Little Green Pharma, said the local market faces several challenges, including:
- Medical cannabis prices are too high.
- There aren’t enough products to choose from.
- Not enough doctors have studied medical cannabis.
- A lack of guidelines from the doctors’ association, but the Danish Society for Clinical Cannabis Medicine is working on new guidance.
Little Green Pharma acquired a fully-operational greenhouse in Denmark from Canada’s Canopy Growth in 2021.
The company’s Billinol “LGP” was the first locally produced cannabis product approved for sale in Denmark.
“Traditionally in Denmark, medical care is essentially free; however medicinal cannabis is only partially reimbursed,” Solomon said.
“Denmark is certainly at the beginning of its journey, and while there are a few key advocates, there is a long way to go.”
“Interestingly, Denmark recently overtook Holland as the largest exporter of cannabis to Germany (after Canada). Bedrocan recently announced it is building a facility in Denmark. And Aurora’s only profitable part of the business is out of Denmark,” she said.
“All of which suggests Denmark is likely to be the leader in Europe.”
Potential solutions
Rasmussen, the CEO of DanCann pharma – which is a leader in the Danish industry via its subsidiary CannGros ApS – said the pilot program won’t take off unless key changes are made.
Some solutions include:
- Better processes that ensure more products are brought to market.
- Improved subsidy conditions for patients, ensuring there is no difference in the healthcare system between different treatments.
“There is no doubt that approved and marketed products, as well as magistral products, continue to gain ground,” Rasmussen said.
“This is due to the enormous lack of breadth and depth in the product portfolio under the pilot program with medical cannabis, as well as the responsibility borne by physicians in this regard.”
Rasmussen said doctors are far more likely to prescribe approved products, which also come with a financial subsidy that makes it more manageable for patients, “given the still very thin subsidy line for the pilot program with medical cannabis.”
Using Denmark as export hub
Some companies say Denmark’s business-friendly regulations and agritech expertise make the country a suitable hub for medical cannabis exports.
The proximity to Germany offers advantages. But the import market in Germany and elsewhere remains small, while the number of prospective medical cannabis exporters grows by the day.
To help facilitate domestic production, in 2021 the Danish government made permanent the ability for businesses to grow cannabis for medical use.
Sigetty, the CEO of Valcon Medical A/S, said the company’s focus is on both the export and domestic market. Among other things, the company exports white label products it manufacturers.
“The medical cannabis industry in Denmark continues to be among the frontrunners in Europe,” he said, making it suitable as an export hub.
“The industry consists of a strong ecosystem, with various companies across the value chain. There’s also an industry association representing a large proportion of the registered companies. These conditions support a stable platform for an international operation.”
Government support
Denmark is keen to promote itself as a destination for international businesses to set up shop, including cannabis businesses.
To that end, the government organization Invest in Denmark facilitates investment through general and specific efforts, according to Derek Light, special advisor for the Ministry of Foreign Affairs.
Medical cannabis is one of approximately 25 subsectors the agency prioritizes.
Its services include:
- Matchmaking and introductions to local stakeholders.
- Information provider on general framework conditions and specific industry insights.
- Guided fact-finding missions.
- Assistance with site selection – though not in all cases.
- Hosting events to connect investors and partners.
- Hosting events to highlight aspects of the industry.
Invest in Denmark does not offer grants, subsidies, or specific advisory, nor does it engage in advocacy to address regulatory requirements.
It does, however, provide periodic input to Danish government regulators on the state of the industry, along with other public agencies.
A counterpart organization within the Ministry of Foreign Affairs, the Trade Council, supports export promotion and market entry strategies in markets across Europe and further afield.
Any company based in Denmark, including companies in the medical cannabis industry, can engage with export advisors based in local Danish embassies in other countries to develop tailormade services to support exports and market entry. This includes:
- Partnership identification.
- Sector monitoring.
- Regulatory advisory and dialogue with authorities.
- Marketing and market development activities.
Source: https://mjbizdaily.com/denmark-medical-cannabis-sales-mostly-on-the-rise-but-pilot-program-sputters/
Business
Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light
Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).
The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.
India’s Indigenous LEO Satellite Vision
Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.
The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.
According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.
The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.
Regulatory Process Moves Forward
Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.
The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.
Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.
Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.
Broadband, Mobile Connectivity, and Strategic Applications
Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.
The company also intends to establish 20 to 22 ground stations across India to support network operations.
Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.
Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.
Major Step for India’s Space and Telecom Sectors
Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.
The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.
Business
Alleged Crores Pharma Scam Mastermind Arrested from Surat
After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.
Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.
Fake Business Deals and Dishonoured Cheques Used in Fraud
Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.
In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”
Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.
Multiple Identities and Repeated Fraud Pattern
Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.
Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.
Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.
Multi-State Surveillance Leads to Arrest in Surat
A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.
Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.
Growing Threat of Corporate Identity Fraud
The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.
Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.
Experts Urge Stronger Due Diligence in High-Value Transactions
Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.
Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.
Investigation Under Digital Markets Act Gains Momentum
The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.
Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.
Industry Groups Demand Swift Action
Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.
Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.
In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.
Google Denies Allegations
Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.
However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.
Potential Billion-Euro Penalties
If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.
Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.
Wider Implications for Big Tech
The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.
A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.
As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.
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