Dr. Reddy’s to acquire German firm Nimbus Health, to enter the medical cannabis market

0 34

Dr. Reddy’s, on Friday, announced that it has entered into a definitive agreement to acquire, Germany-based pharmaceutical wholesaler, Nimbus Health. The pharma major will acquire Nimbus Health for an upfront payment plus performance and milestone-based earn-outs over the next four years. 

“Medical cannabis is increasingly used to address and treat high unmet medical needs, especially in pain management and CNS. Further, with numerous studies being conducted to leverage and introduce medical cannabis, we believe this is a must-be field for future healthcare delivery. Nimbus Health has established itself as a fast-growing, highly reputable, pioneering platform with an excellent network of trade partners and know-how access, where the German sick-funds fully reimburse medical cannabis. As more European countries adopt the usage of medical cannabis, the ability to leverage and access newer geographies will be key. We are very excited that with Nimbus joining Dr. Reddy’s family, together with Linus and Alessandro, we embark on a new, exciting journey of medical cannabis, which supports Dr. Reddy’s mission of meeting unmet patient needs.” 

Patrick Aghanian, Head of European Generics, Dr. Reddy’s, commented

Nimbus Health, which was founded in 2018, is one of Germany’s first medicinal cannabis startups.  As a result of the acquisition, Dr. Reddy’s will be able to expand on Nimbus Health’s strengths and deliver medical cannabis-based pharmaceuticals as a potential therapeutic alternative for patients. The company’s brand name for the medical cannabis business will remain “Nimbus Health” and it will be a wholly-owned subsidiary of Dr. Reddy’s.

“We were really excited when Dr. Reddy’s approached us and recognized Nimbus’s highly efficient importing, registering, and launching platform for various medical cannabis brands in Germany. The close alignment between the values of Dr. Reddy’s and Nimbus gave us the confidence that we can stay focused on the existing business and grow future endeavors together. We are glad to work with Dr. Reddy’s to activate synergies supporting growth in all sectors.” 

Linus Maximilian Weber, Founder and Managing Director of Nimbus Health

With the legalisation of medical cannabis by the German Parliament (Bundestag) in 2017, demand for medical cannabis has risen in recent years. Germany’s medical cannabis market is now worth 122 million euros, with a growth rate of 25% in 2021 compared to 2020 and a CAGR of 55% since 2017, making it one of Europe’s largest marketplaces. Medical cannabis helps around 150,000 German individuals with unmet health needs.

Dr. Alessandro Rossoni, Co-Founder and Managing Director of Nimbus Health, says: “The relationship between Dr. Reddy’s and Nimbus Health has developed very positively over the past year. It felt like a natural match to make the next steps together. We are excited that Dr. Reddy’s acknowledged the potential of Nimbus in the medical cannabis market. Dr. Reddy’s commitment sets a significant milestone for further developing medical cannabinoid-based medicines and unlocking new possibilities to benefit patients. We are very confident that being part of Dr. Reddy’s will help us strongly take our operations to the next level and further increase our impact in this quickly developing market. 

See the tweet:

Leave A Reply

Your email address will not be published.