Written by Michael Koliha from ARROWS Advisory Group.
Czech government approved amendment to the law on addictive substances. This amendment will fundamentally change the method of authorizing cultivation of medical marihuana in Czechia.
At the moment the law technically allows subjects to grow medical marihuana provided that these subjects fulfill several legal requirements, however, State Institute for drug control also has to announce a tender and selects a producer of the medical marihuana in the amount as specified in the tender. For this reason, there is so far only one producer of medical marihuana in Czechia and other penetration of the market has been nearly impossible despite increasing demand that has been satisfied by import.
The proposed amendment will allow both natural persons as well as companies to produce medical marihuana provided that they fulfill legal requirements.
Even with the amendment being approved by the parliament the production of the medical marihuana would still be a highly regulated business, as the producers have to obtain the certificate of good manufacturing practice and license for the medical marihuana production, both issued by the State Institute for drug control, as well as the permission to handle addictive substances, issued by the Ministry of health.
Before obtaining the license, the producer has to provide among others fully equipped growing room ready for the production as well as the security of the growing room. The State Institute for drug control has up to 120 days to decide on the granting on the license.
Despite the strict regulations the producers would be able to sell the medical marihuana to distributors or even to export abroad which is not allowed at the moment. The amendment is expected to come into force in July 2021.
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