In a bid to strengthen its position in the global medical cannabis industry, Indian pharmaceutical major Dr Reddy’s Laboratories has said that it will acquire German firm Nimbus Health.
The two companies did not disclose financial details of the deal, but Dr Reddy’s said it will acquire Nimbus Health for an upfront payment, plus performance and milestone-based earn-outs over the next four years.
In Germany, Dr Reddy’s claimed that the demand for medical cannabis has increased over the past few years following its legalisation in 2017.
Further, some regulators have also given a cold shoulder to such treatment protocols because many players rely on experimental approaches for administration of cannabis products.
In January this year, the government had informed the Delhi High Court that cannabis is not completely prohibited in the country as its medical and scientific use is allowed after obtaining necessary permissions from state governments.