Somaí moves forward in Germany and submits 20 ACM requests in Portugal in the first quarter of 2024

Somaí Pharmaceuticals announced this week a series of partnerships and financial agreements that consolidate its position in the German medical cannabis market. The company, based in Portugal and EU-GMP certified, has entered into strategic partnerships and agreements with several German companies, including Canify AG, Canymed GmbH and Grünhorn. In statements to Cannareporter, Michael Sassano, CEO of Somaí, states that Germany and Australia represent 80% of its market, but guarantees that Portuguese patients are not forgotten. Somaí will submit 20 ACM’s in Portugal, starting in January 2024.

One of the operations consists of a strategic partnership with Canify AG, a German pharmaceutical company, which will result in the launch of an exclusive line of cannabinoid-based products in Germany, expected to generate 5 million euros in revenue over the next three years, with prospects of capture 10% of the German market.

Somaí currently employs around 48 people at its Carregado unit, in Portugal. In the photo, some members of the team with the CEO, Michael Sassano, in the center

The second strategic operation is a two-year partnership with Canymed GmbH, a wholesaler of medicinal cannabis to pharmacies, doctors' offices and hospitals across Germany. The collaboration aims to take advantage of Canymed's extensive distribution network, allowing Somaí to ship its cannabinoid-based pharmaceutical products to meet the growing demand for innovative healthcare solutions in the German market.

A third Strategic partnership was made with Grünhorn, a company operating in the health sector in the field of cannabis. Somaí and Grünhorn have joined forces to create an exclusive line of cannabinoid-based pharmaceutical products in Germany, including various THC/CBD ratios. The agreement aims to offer German patients a unique range of medical cannabis options tailored to their individual needs.

Somaí sells mainly to Germany, Australia, Poland and the United Kingdom, but Brazil is also in its sights

According to Michael Sassano, CEO of Somaí, speaking exclusively to Cannareporter, “the German retail market is mainly made up of paid insurance, with around 15% currently private. Our strategy with partnerships is to offer some product lines especially for the insurance market and further open up the private payer with other product lines. Our basic oral drops are already more advanced than current products and have a much more pleasant flavor profile due to our proprietary process, which was developed over a decade.”

Germany and Australia represent around 80% of Somaí's total sales (in a proportion of 40%/40%). “If new legislation is approved in Germany, our numbers will accelerate in the country. Both countries are on a positive trend and Australia accepts all of our finished dosage forms, while Germany is still magistral,” explains Sassano. Poland and the United Kingdom cover the remaining Somaí market, with the other 20% (in a proportion of 10/10), but Brazil is in Somaí's sights for 2024, and “there are no agreements signed yet”, says Michael Sassano.

Additionally, Somaí signed a global agreement with Airpro, a US vaporization company, to supply Germany and Australia with its vaporizers in a co-branded product.

Somaí says it has more than 30 products on the way

Michael Sassano further stated that Portuguese patients are not forgotten: “We hired ELS to work with our internal regulatory affairs department, to make 20 ACM (Marketing Authorization) registrations. Our first ACM will be fully shipped in January, and as the first process takes longer, most of the other 19 will be done during the first quarter, with a few more in the second quarter, like our oral spray. In the third quarter we will move forward with our gel capsules.”

Michael Sassano, CEO of Somaí Pharmaceuticals. Photo: Laura Ramos | Cannareporter

Currently, Somaí has ​​58 SKUs [acronym for Stock keeping unit, an internal traceability reference] of manufactured products and plans to manufacture 30 more by the end of the first quarter. “These products are already in our current catalogue. We will present new initiatives by the end of the first quarter with even more advanced and desired products”, says Sassano.

Regarding the sales price of these products, Michael Sassano states that Somaí's initial range varies between 85 and 125 euros per bottle and advanced formulations between 125 and 150 euros per product. “Our focus is to make the greatest offer to doctors to treat their patients and be ready not only for mature markets like Germany or Australia, but also for new markets. We don't know how regulators will adopt [cannabis], but we do know that when adopting cannabis structures, patients want advanced choices and formulations, such as faster-acting and more bioavailable products, terpene-enhanced products, live resin and live rosins, vaporizers, transdermals, etc. Advances in extracts with better performing products will pave the way for greater adoption, similar to more mature markets like the US, where we see around 65% of extracted products being sold,” concludes Sassano.