Please ensure Javascript is enabled for purposes of website accessibility

Curaleaf Rolls Out Medical Pot Products in Germany

By Eric Volkman - May 11, 2021 at 7:11PM

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 ambitious U.S. company wants to place a wedge in the big European country.

A day after reporting its latest set of quarterly results, Curaleaf Holdings (CURLF 3.02%) announced a promising new product line in a market far from its own. On Tuesday, the U.S. cannabis company said a subsidiary has launched a new line of medical marijuana products in Germany.

That subsidiary, Adven, is rolling out a high-Tetrahydrocannabinol (THC; the substance that produces pot's famous euphoria) oil product to introduce the country to its offerings. This will be followed by other products of varying strengths in both oil and flower formats. Curaleaf/Adven is also to introduce cannabidiol (CBD) formulations for qualifying German patients.

Cannabis on a desk in a doctor's office.

Image source: Getty Images.

"We are very pleased to bring our first medical cannabis products to market in Germany and, with the rapid extension of our product range in 2021, establishing ourselves as a leader in Europe's largest medical cannabis market," the company quoted Curaleaf International CEO Antonio Costanzo as saying.

Compared to the U.S., where both recreational and medical marijuana are legalized in a handful of states, Europe is relatively more strict. No country in the European Union has yet liberated recreational sale and use, and many of its nations bar the drug outright.

So while Germany is indeed a relatively large market and medical marijuana is more profitable, by and large, than its recreational counterpart, we shouldn't expect a big jolt to Curaleaf's revenue -- at least, not yet. The company cited an estimate indicating that Germany's medical segment could grow to $2.1 billion by 2025. If it can capture even a modest chunk of that market, it could see some decent lift on the top and bottom lines.

With several encouraging numbers from the first quarter and now this promising news, investors are bullish on Curaleaf. On Tuesday, the stock rose by 3.1%, on a generally awful day for the overall market.

 

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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

Curaleaf Holdings, Inc. Stock Quote
Curaleaf Holdings, Inc.
CURLF
$5.93 (3.02%) $0.17

*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
394%
 
S&P 500 Returns
127%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/19/2022.

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.