International Sales and Marketing

From Te Tairāwhiti to the World

The global medicinal cannabis market is projected to grow at a compound annual growth rate (CAGR ) of 24% between 2023 and 2028 to reach US$37b.

What’s driving market growth? 

  • The growing number of countries legalising cannabis for medicinal use.

  • The rising number of R&D projects, clinical trials, and increased commercialisation of the product. 

  • The rising population of older patients more vulnerable to chronic illnesses and likely to suffer from related pain.

  • Growing consumer awareness.

It is a dynamic and ever-evolving market. Many countries continue to consider progression towards legalisation or decriminalisation of cannabis. Two large markets in particular: Germany has a proposal to fully legalise cannabis before the EU parliament, and the US is considering federal legalisation.  

Despite this, international markets particularly across Europe and Australasia, are growing rapidly and offer significant opportunities for those New Zealand companies that can provide consistent, differentiated, GMP-quality product and develop a strong in-market sales and marketing presence.

Photo: Potsdamer Platz at dusk, Berlin, Germany.

Rua’s Focus on Germany

In Germany, Rua works with distributor Nimbus Health and is focused on the launch of our first product.

Established in 2017, Germany is by far the largest and most developed medicinal cannabis market in Europe.

Here, clinicians can prescribe medicinal cannabis for a variety of conditions, and around 60-70% of those prescriptions are paid for (reimbursed) by Statutory Health Insurers. Reimbursed sales are complimented by a substantive private paying market. In Germany, 72% of medicinal dried cannabis flower prescriptions are issued for the treatment of pain. 77% of those prescriptions are for high THC flower3.

To succeed in Germany, companies require differentiated products and a strong domestic sales and marketing presence. The market shows a lot of promise. Analysts expect the German market to be worth around NZ$700m and to have grown to 147,000 patients by the close of 20233, and to be worth NZ$1.4b by 2025.

Photo: Pedestrian area in Heidelberg, Germany.

Establishing a Market Presence in Europe

In addition to Germany, where Rua will soon launch product, there are a number of higher-value countries within which a viable domestic medicinal cannabis market has been established and where export-focused companies, like Rua, might expect to expand.

Rua has a five-year master supply agreement with European medicinal cannabis distributor, Motagon, establishing Rua as Motagon’s preferred Australia and New Zealand supplier of medicinal cannabis products and ensuring Rua’s access to high-value markets across Eastern and Central Europe.

Motagon is a subsidiary of Heaton, a Czech pharmaceutical company with 20 years of experience in the pharmaceutical industry. Motagon is focused on introducing a broad range of cannabis-based medicines to the European Union. The company is active in 20 countries across Central and Eastern Europe in countries including Poland, the Czech Republic, Malta, and Croatia. Their support includes access to their extensive distribution channels and boots-on-the-ground marketing support.

Photo: Prague Castle and Mala Strana or Little Quarter during twilight blue hour, Prague, Czech Republic.

Working in our own Back Yard

Despite both industries being considered relatively new, medicinal cannabis is progressing in Australia and Aotearoa New Zealand.

Though the conversation around decriminalisation and legalisation continues in both countries, there is minimal prospect of recreational legalisation any time soon. A tightly regulated medical system ensures both markets have ample room to grow should regulations continue to support patient access and sustainable industry growth.

In New Zealand, Rua has one product available for patients and is working with manufacturing partners to build out our product portfolio.

Our partnership with Australian cultivator, Cann Group, places Rua in an ideal position to explore the Australian market.

Meet our Commercial Team

Paul Naske

  • BSc, PG Dip Business

    Paul has held a range of leadership positions in business strategy and development, including roles as General Manager of Corson Grain and as a Business Unit Manager at Fletcher Building. Paul has been overseeing Rua’s topline business operations since the beginning of 2019 and has been critical in the design and efficient execution of Rua’s global strategy. His knowledge of the commercial environment ensures Rua’s alignment with the business needs of our global clients. Paul joined Rua in February 2019.

Dr Susan Martindale

  • PhD

    Susan’s regulatory career began in the 1980s as New Zealand’s only GMP auditor. She has held various regulatory, advisory and management positions within the Ministry of Health, including chairing the Ministerial advisory committee responsible for medicines classification. Susan was involved in the negotiations which led to the signing of the Mutual Recognition Agreement with the EU and the work programme to harmonise with Australia.

For more information about doing business with Rua, contact CEO Paul Naske.