Canadian marijuana giant Canopy Development has acquired Germany-primarily based C3 Cannabinoid Compound Enterprise from Bionorica in an all-money deal for 226 million euros ($253 million).

The deal is 1 of the biggest cannabis acquisitions in the European marketplace to date.

C3 generated income of $30 million in 2018 from 5 merchandise, according to a news release.

The subsidiary of Bionorica manufactures each all-natural and synthetic THC and CBD, and sells cannabinoids in Germany, Austria, Switzerland and Denmark.

The company said it has supplied roughly 19,500 sufferers in Germany with dronabinol in 2018.

Jefferies International analyst Owen Bennett stated Canopy was pressed into action immediately after it failed to win a cannabis cultivation bid from German authorities final month.

“Somewhat surprisingly, offered their historic sales functionality in Germany, Canopy was not awarded a lot, and it appears this move goes some way to addressing the snub in our view,” Bennett wrote in a note to investors.

“Through this acquisition, Canopy will obtain numerous of the advantages of that the German tender would have: authorized operations inside Germany, distribution and relationships with German pharmacies/sufferers, and a route to sales development.”

Bionorica’s cannabinoid production facilities – along with about 100 workers – will be taken more than by Canopy.

A extended-term investigation cooperation agreement amongst the two businesses restricted to investigation with dronabinol and CBD was also announced.

Bionorica began a clinical trial final November to investigation the impact of dronabinol to treat various sclerosis, and that will stay a important element of the investigation cooperation with Canopy.

Dronabinol is sold as a magistral preparation, exactly where the medicinal item is transformed into a final item, such as an mixed with an oil, by the pharmacist according to the prescription.

The item failed an try to develop into a registered pharmaceutical drug, which means statutory reimbursement for it in nations such as Germany is not automatic.

Alfredo Pascual can be reached at [email protected].