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Does Canada’s shrinking medical cannabis market offer lessons for other nations?

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Canada’s regulated medical cannabis market has dwindled significantly from its peak, declining well before recreational marijuana legalization in October 2018 and continuing that downward trend as adult-use sales displaced purchases through regulated medical channels.

Experts say factors behind the medical market’s decline include:

  • The convenience of shopping at adult-use stores.
  • Challenges for doctors in authorizing medical cannabis.
  • A lack of tax advantages for medical cannabis clients and producers.
  • THC potency limits that apply to both recreational and medical cannabis products.

Those issues might offer lessons for other nations and jurisdictions that legalize medical marijuana first, followed by adult-use legalization.

In Canada, spending on medical cannabis products peaked about a year before recreational cannabis sales began, reaching 161 million Canadian dollars ($120 million) in the fourth quarter of 2017, according to Statistics Canada data.

The most recent data shows medical marijuana sales totaled CA$109 million in the second quarter of 2022, after hitting a low of CA$104 million in the first quarter.

“Right now, what’s happening is the patients, they just give up and they just go buy something” from an adult-use store, said Brett Zettl president and CEO of Saskatoon, Saskatchewan-based medical cannabis company Zyus Life Sciences, which is preparing to go public via a reverse takeover.

“And so, they’re self-medicating without any medical oversight whatsoever.”

Canada was the first major global economy to legalize recreational cannabis at the federal level.

However, mature marijuana markets in the United States such as Colorado have exhibited a similar dynamic, with medical markets shrinking after recreational legalization.

Those trends raise the question of whether a similar medical market decline could occur in Germany, Europe’s biggest cannabis market, if that country follows through on its adult-use legalization plan.

Some Germans pay out-of-pocket for medical cannabis, and that subset of the market stands to be affected by adult-use legalization, said Deepak Anand, a board member of nonprofit advocacy group Medical Cannabis Canada and a consultant on marijuana regulations for several international governments.

However, Anand said roughly 40% of all German medical cannabis prescriptions are reimbursed by the public health system.

“I don’t think that the trajectory that we’ve seen in legal markets where, basically, post-(recreational) legalization we see medical sales have declined, will necessarily continue in Germany,” Anand said.

‘The hassle factor’

Canadians wishing to access medical marijuana products such as dried cannabis, edibles, oils or topicals through the government’s system require an authorization by a physician or nurse practitioner, allowing them to buy cannabis directly from licensed producers for mail delivery.

Home medical cannabis cultivation is also permitted, as is sourcing supply from a designated grower.

Only about 42,000 individuals produced medical cannabis for themselves or others as of the end of 2021, according to Health Canada.

In comparison, there were roughly 257,000 registrations to buy cannabis from a commercial producer (individuals can register with more than one producer).

Several factors might explain why the Canadian medical marijuana market has declined from its 2017 peak, according to Zettl, a longtime presence in Canada’s regulated MMJ industry.

Ahead of recreational legalization in October 2018, Zettl said, Canada’s medical cannabis patient population included both “true medical users” and some recreational users.

“They would try to get it legitimately and then still use it recreationally,” Zettl explained.

Now, he said, using the formal medical marijuana stream has become inconvenient compared to buying cannabis at an adult-use store.

Zettl also believes doctors might not want to spend time filling out medical cannabis authorization paperwork and that physicians who authorize cannabis for too many patients could face unwanted audits by medical-certification bodies.

“People just don’t want the hassle factor,” Zettl said. “The doctors don’t want the hassle factor.”

Other medical marijuana challenges

Cannabis consultant Anand cited some other factors contributing to the Canadian MMJ market’s decline.

“Pre-(recreational) legalization, there were a number of challenges with respect to form factors,” Anand said.

New forms of cannabis, including edibles, hit the market after adult-use legalization, but medical marijuana products are subject to the same regulations as recreational cannabis – including THC limits on products such as edibles.

Holding “medical and recreational cannabis to the same standards, with respect to putting on limits for high THC, for example, that is a mistake,” Anand said.

He believes Canada has been so focused on recreational legalization that “not only have patients been ignored, but also regulatory policy has been ignored to a large extent.”

“And what we saw, and what we’re seeing is, patients are going to the legacy or the illicit market to be able to access their products,” he continued.

The affordability of cannabis was another historical challenge for the medical market, Anand added.

“Obviously, we’ve seen that improve post-(recreational) legalization.”

Canada offers little in the way of preferential tax treatment for registered medical cannabis clients, although it does permit registered patients to claim medical marijuana expenses on their annual tax returns.

Patients pay retail taxes on medical marijuana purchases, as they would at a recreational store, and producers pay the same excise taxes as they do for adult-use cannabis.

That “just doesn’t make sense,” Anand said.

“We don’t charge tax on any other pharmaceutical products in Canada.”

Finding growth again

Anand called for policy changes to get Canada’s medical marijuana market growing again.

“Allowing pharmacies to be able to dispense medical cannabis is a no-brainer – that should be immediate,” he said.

“Eliminating tax should be another immediate step that we want to take, and eliminating potency limits.”

Canada’s federal Cannabis Act is currently under review, and the Canadian cannabis industry is hoping for reforms.

The government lists the “impact of legalization and regulation of cannabis on access to cannabis for medical purposes” as one of its “key themes” for the review.

Zyus’ Zettl said the government is using “this recreational-style act to oversee and regulate the medical side – and it’s basically coming at a massive disservice for the medical usage, both on the doctor side and the patient side.”

In terms of finding growth in Canada’s medical marijuana market, Zettl said Zyus is developing three cannabis drug-product candidates and hopes to eventually receive formal Drug Identification Numbers (DINs) from Health Canada.

He said such products could “become the holy grail,” because they could be included in insurance company prescription-drug formularies and doctors could prescribe them without worrying about scrutiny from their regulators.

Zettl acknowledged that achieving DINs for herbal cannabis products is a long-term goal.

“So medical cannabis in the meantime, though, has to find ways to appeal to the individuals who are really, truly using it medically and provide some kind of reason for them not to just give up and start just buying (from recreational stores).”

Source: https://mjbizdaily.com/shrinking-canadian-medical-cannabis-market-might-offer-lessons-for-us-germany/

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Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light

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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.

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Alleged Crores Pharma Scam Mastermind Arrested from Surat

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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.

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EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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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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