Cresco Pharma (ASX: CPH) signs deal that will launch the company into Switzerland's medical cannabis market

Cresco Pharma (ASX: CPH)(OTC: COPHF)(FRA:1X8) has signed a non-binding Letter of Intent (LOI) with Swiss company Innuana AG as part of an expansion into Switzerland's medical cannabis market. 

Innuana is a well-known, GMP grade licensed cannabis grower in Switzerland. Just last month, Innuana was asked by the local government to produce medical cannabis for people in the City of Zürich from 2022 onwards. Innuana is owned by parent company Uana Holding AG. 

As per the terms of the LOI between Cresco Pharma and Innuana, Innuana will grow medical cannabis according to Cresco Pharma's specifications. Cresco Pharma will then market and provide that medical cannabis to patients in Switzerland. The deal between the two companies will last an initial term of one year, and if things go well, it will automatically renew.

Cresco Pharma's expansion into Switzerland was partially made possible by recent changes to the Swiss Narcotics Act. Among other things, the Act makes it possible for people in Switzerland to access medical cannabis without "exceptional authorisation" from the country's Federal Office of Public health (FOPH). 

According to Cresco Pharma's Director of International Operations, Jorge Wernli, these changes have "unlocked a significant opportunity" for the company — as the changes will allow many people who couldn't previously access medical cannabis to use it legally. 

Recent regulatory shifts in Switzerland have unlocked a significant opportunity for Cresco Pharma, and this collaboration with Innuana marks the first step in our expansion into the Swiss prescription market.

Cresco Pharma believes that 110,000 Swiss patients could potentially use medical cannabis products in 2022. The industry is also growing quickly, as Switzerland's medical cannabis market is expected to grow to CHF1.3 billion  ($AU1.9 billion) by 2028. Though Cresco Pharma will focus on Switzerland for now, the company says expanding into other countries with similar opportunities to Switzerland is a "medium-term objective." 

The recent changes to Switzerland's medical cannabis regulations aren't the only significant developments for the industry, as Switzerland passed a bill to legalise cannabis in October.