The firm has been making significant inroads into Europe this year and it will now see its products distributed to 15,000 pharmacies in Germany. MedVec has an experienced, 30-strong sales team and it also serves the Austrian and Swiss markets, giving Elixinol a much greater presence on the continent.
It has been appointed as Elixinol’s exclusive distributor in those markets for an initial guaranteed period, with the provision for a three-year extension if successful. The exclusivity of the deal is based on MedVec meeting sales targets.
It is confident it can achieve those goals, but if it fails then Elixinol will appoint a second distributor on a co-exclusive basis. The agreement covers Elixinol’s branded products and white label offerings.
“The distribution agreement with MedVec allows Elixinol to significantly expand its presence in Germany, the largest pharmacy market in Europe, as well as Austria and Switzerland,” said Elixinol chief executive Paul Benhaim.
Elixinol began producing hemp products in Australia back in 1999 and it now has two main divisions: Elixinol Australia and Denver-based Elixinol USA. It also has a wholly-owned Dutch subsidiary called Elixinol BV and the deal with MedVec has gone through that business.
It is keen to boost its presence in Europe, which is tipped to become the world’s largest cannabis market, and in February it announced a major expansion of its operations on the continent.
Elixinol opened offices in the Netherlands, Spain, and the UK. A mid-2018 capital raise to support global expansion has funded both the European expansion and further investment in Japan. It employed 12 new full-time staff in Europe to boosts its sales and marketing capacity there, and the decision is starting to bear fruit.
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