Medical cannabis has been legal in Denmark under a pilot program since 2018 during a trial period that was set to expire in December 2025. However, on November 19th, the Danish Health Minister invited political parties to discuss the permanent legalization of medical cannabis in Denmark, where STENOCARE has three medical cannabis oil products approved for sale. The intention of the government is to proceed with the legalization.
The government in Denmark is proposing to make the pilot program permanent and has invited political parties to discuss the matter. According to a press release from the Minister for Interior and Health, this is based on a new evaluation which shows that the number of redeemed prescriptions has increased significantly and is now at its highest level since 2018. According to The Minister of Interior and Health, Sophie Løhde, many patients has benefitted from the treatment of medical cannabis, for instance cancer patients who may suffer from severe nausea after chemotherapy treatment, or people with multiple sclerosis who may experience severe pain.
The potential permanent legalization will enable continued treatment with medical cannabis for patients and provide clarity regarding the future of the industry in the country.
Analyst Group’s view of the impact on STENOCARE
Analyst Group views this as positive news for STENOCARE, a leading supplier of medical cannabis products to the Danish Pilot Programme since 2018. With potential permanent legalization, a clear future will be established for STENOCARE in the country, further justifying investments in new products. For instance, the company’s innovative new product, Astrum oil, which according to Analyst Group has the potential to revolutionize the industry, has been approved in Australia and Germany, and we now see Denmark as the next potential market for the product.
The Danish market has been STENOCARE’s home market and its most important in terms of sales historically, as the company is expected to have a strong brand among doctors in the country. Hence, we see good potential for STENOCARE to grow in the market, even though a special situation with a competing magistral product, which is supported by an 85% patient subsidy from the Danish Medicines Agency, is expected to hamper sales growth in the short term.
In summary, legalization eliminates a source of uncertainty for STENOCARE, paving the way for continued investments in the country, which is one of the company’s most important markets.
