A country where nothing ever works and nothing ever changes.

If you've ever lived or worked in Italy for a sufficient amount of time and had to deal with its bureaucracy and legal system this opinion likely resonates with you. It is therefore understandable why many refuse to get their hopes up over the potential of new industries and markets actually gaining momentum in the country. It also explains why many investors are often skeptical of, and quick to judge, anything too avant-garde at the risk of completely disregarding and becoming themselves ignorant to any changes in whatever industry of interest. Furthermore, the incomprehensible slowness with which Italy's legislative machine moves forward doesn't exactly help build excitement.

Now, would you believe me if I told you that medical Cannabis in Italy was legalised in 2006?

Almost two decades later why isn't it a much bigger industry? Through Sativex entering the market (2013), the passing of a decree shedding light on medical Cannabis' uses in different pathologies (2015), and the birth of a collaboration between the ministries of health and defence to grow the necessary raw materials (2016) it took almost another decade before the ball really started rolling (Ministero della Salute, 2022). Nowadays, drugs containing active pharmaceutical ingredients (APIs) extracted from Cannabis may only be obtained upon medical prescription and are reimbursed only if said prescription originates from doctors operating in the public healthcare system. Pharmacies are the main distributors (and manufacturers really) of these APIs: Cannabis medications are only available as Galenic preparations. These are obviously more expensive and time-consuming than truly necessary.

Medical Cannabis globally is growing in popularity as a result of its usefulness in treating symptoms in several conditions (cancer, sleep disorders, chronic pain, opioid use disorders, headaches, asthma, bowel disease, anxiety, depression, and PTSD) alongside it being portrayed as 'natural' i.e. in fashion (Journal of Medical Internet Research, 2023). Italy's demand for medical Cannabis has long surpassed its sole legal producer's (a military facility in Florence) supply capabilities and must therefore rely on importing it from other countries (The Times, 2024). The disparity between supply and demand alone suggests growth potential of this industry (Forbes, 2022).

The Italian medical Cannabis market is expected to reach $312.50m this year and is anticipated to demonstrate a CAGR of 1.58% between now and 2029, leading to a market volume of $337.90m (Statista, 2024). More broadly the European medical Cannabis market is poised for robust growth. The latest market insights project the market will reach $9b by 2028 from the $3b registered in 2022. The expansion is characterised by a CAGR of 19.0% over the forecasted period. Acceptance/legalisation and market growth tend to function synergistically helping each other grow. As countries such as Germany, France and the UK further recognise and embrace Cannabis' pharmaceutical applications the more regulatory adjustments are likely to occur ultimately improving patient access (Research and Markets, 2024).

The medicinal Cannabis market in Italy has clear potential for growth and evolution (and therefore investment) due to the high demand and low/inefficient supply. Materia Medica Processing is working on providing better and more cost-effective solutions ultimately positively impacting patient access to this class of APIs.