The five (5) critical strategic decisions for a Medical Cannabis Investment in Greece

UK started importing Medical Cannabis oils from Australia to meet patients growing demand
UK started importing Medical Cannabis oils from Australia to meet patients growing demand
September 8, 2020
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The five (5) critical strategic decisions for a Medical Cannabis Investment in Greece

The five critical strategic decisions for a Medical Cannabis Investment in Greece

The quick growth of the Medical cannabis market in Europe the last two years, constantly generates the entrance of new companies. Therefore, the steadily increasing competition in this market has made particularly crucial the initial investor’s decisions for setting up a successful Medical Cannabis facility.

Prior the investment’s implementation, it is critical for the potential investor to be aware of five 5 most critical decisions he will have to make, and the problems that might occur from any wrong choices.

THE FIVE MOST CRITICAL DECISIONS IN A MEDICAL CANNABIS INVESTMENT

#1 IDENTIFYING THE APPROPRIATE LAND

The cornerstone of the medical cannabis investment is the selection of the appropriate area for the construction of the facility.

The critical factors for identifying the appropriate land are, indicatively:

  • The legal requirements, resulting rejection of the Installation License
  • The operating requirements of such a unit, resulting in increased operating costs (Costs in the supply chain, energy consumption, staff, water treatment, etc.)
  • The future expand-ability requirements of the investment, i.e there is no possibility of scalability of the cultivation and / or the processing unit

#2 INITIAL FACILITY DESIGN

The design of the facility is a critical strategic decision for a Medical Cannabis investment, both for the final licensing of the facility and its future scalability.

The risks posed by an inadequate design of the cannabis cultivation and processing plant apart from the failure to comply with the European Rules of Good Manufacturing (EU-GMP) and consequently the risks for issuing the final license to sell products are the following:

  • Inefficient workflow causing an increase in production costs, an increase in transfer time from station to station, errors, and waste
  • Difficulties in future expansion failing to meet the growing productivity demands and market demand
  • Increased energy costs, especially in the cultivation unit
  • Risks of contamination of the crop by pests, mold resulting in crop losses associated with very high costs but also shorter lifespan of the plant
  • Focusing only in the short-term profits and rapid market entry, risking that the facility may not be able to meet future market demands, resulting thatcompetition will absorb the company’s share.

#3 PRODUCT PORTFOLIO

Another very important decision is the mixture of Medical Cannabis products that will be produced. It is essential to enter the market the soonest possible and maintain the ability to adapt medical cannabis products quickly to the constantly changing market trends and legal framework.

Thus, when choosing the mixture of the final pharmaceutical products, it is crucial to know the future market trends both for selecting appropriate equipment and designing the most suitable facility.

#4 THE FUNDING PROCESS

Creating a detailed investment plan, accurately estimating the budget and not underestimating the amount of the initial investment, is of utmost importance. The success of the investment and the future growth, relies on gathering sufficient funds from the beginning.

The mechanical equipment in a Medical Cannabis Investment is of great value and is something that is often underestimated in order to reduce budget of the initial investment, resulting in significant shortcomings and questionable decisions.

To avoid future high costs and risks, we recommend investors to raise the maximum possible funding and use government funding instruments, such as the Development Law which provides aid up to 55%.

#5 SELECTING PARTNERS AND CONSULTANTS

The selection of partners who understand the peculiarity of investing in Medical Cannabis is vital as they should be able to combine knowledge of both the pharmaceutical industry and agricultural sector.

The success of this project depends on creating strategic partnerships and having knowledge of the medical cannabis market, the legal framework of Greece.

It is also important that the consultant who undertakes the coordination and supervision of the investment, will be able to represent (when necessary) the investor. The main risks posed by choosing poorly partners are indicatively:

  • Facility Design unsuitable for Medicinal Cannabis
  • Equipment that does not meet the specifications of the final products
  • Difficulties in time and project management
  • Difficulties in reaching the market for promoting and selling the final products

VK PREMIUM has undertaken several Medical Cannabis investment projects, therefore has the experience and know-how. The team of specialized consultants and VK PREMIUM’s international network of partners can guide the investor in making the appropriate critical strategic decisions.

We offer an enhanced palette of consulting services to facilitate medical cannabis investments in Greece, including strategy & planning, products portfolio as of current & future market trends, licensing, grants utilizing Investment Incentive Law, design & construction of the facility in accordance with EU GMP & GACP standards and distribution strategies to secure sales success in foreign markets.

Contact Us

We are always available to discuss your medical cannabis project. 

Call us at : +30 2106835560, send email to : info[@]vkmedicalcannabis.com or fill the bellow form:

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