Please ensure Javascript is enabled for purposes of website accessibility

Tilray Wins Authorization to Sell Medical Marijuana in Portugal

By Eric Volkman - Feb 1, 2021 at 5:16PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The regulatory approval bolsters the cannabis company's ambitions to be a top player in the category.

Tilray (TLRY) has opened a new market for its medical marijuana. The company announced Monday that Portugal's national healthcare regulator, Infarmed, has granted it authorization to sell its products in that country.

"This is the first time a full quality dossier was required and delivered to obtain market authorization in Europe for a medical cannabis product," Tilray wrote in the press release trumpeting the news.

Such authorization is fairly restrictive, however. It permits Tilray's medical marijuana to be prescribed only for a limited number of uses, such as to treat spasticity related to multiple sclerosis or spinal cord damage, and nausea and vomiting resulting from medical treatments such as chemotherapy.  

Tilray has had a notable presence in Portugal for several years. It operates a 2.7-million-square-foot growth and cultivation facility in the country, from which it not only plans to supply the local market but also other European Union nations.

A streetcar in Lisbon, Portugal.

Image source: Getty Images.

The new authorization supports the company's ambition to expand in the medical marijuana segment, where products tend to be more profitable than those in the recreational sphere. This push seems to be working. Its international medical cannabis sales grew by 42% year over year in 2020's third quarter.

Tilray hinted that it still has plenty of room for growth on the Continent. "Patient demands are increasing in Portugal and throughout Europe, and our objectives are to provide them with the safest and best quality medical cannabis products," said Sascha Mielcarek, its managing director in Europe.

Investors liked the Portugal news. Tilray shares closed Monday 5.5% higher, well eclipsing the 1.6% gain of the S&P 500 index for the day.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tilray Stock Quote

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.