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Will the cannabis industry be forced to write off NIS 2 billion? - Walla! Of money

2021-10-13T05:57:37.155Z

The consulting firm BDO estimates that this is the amount that will be deducted from the industry following the reform that will go up for preliminary reading today. Wondering about the position of the Minister of Health who will support the reform but intends to torpedo later



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Will the cannabis industry be forced to write off NIS 2 billion?

BDO estimates that this is the amount that the industry will lose due to the cannabis reform initiated by MK Sharan Hashakel and will go up for a preliminary reading today. ".

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  • Sharan the mind

  • Cannabis

  • Medical Cannabis

  • Ministry of Health

Roast Greenberg

Wednesday, 13 October 2021, 08:23 Updated: 08:50

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The cannabis market as a pharmacy ahead of the rise of the bill for medical cannabis reform in a preliminary reading today (Wednesday) in the Knesset, which lowers the chain of factories and pharmacies in the industry's value chain, with the intention of lowering the prices of medical cannabis products for patients.



An analysis by the

consulting and accounting firm BDO

shows that the estimated future loss to the 9 medical cannabis plants approved by the Ministry of Health (excluding investments made in plants that are still in the process of being established and not approved for commencement of operations) is estimated at NIS 1.9 billion, of which NIS 1.65 billion. NIS 1 billion loss in future return, along with about NIS 250 million investment actually made for the construction of the factories.



In addition, the pharmacies will also make losses, after about 160 of them invested an aggregate amount estimated by BDO at about NIS 25 million, along with a loss of future return on their investment estimated at about NIS 300 million.



Doron Arami, director and head of the medical cannabis

division at

BDO's consulting and accounting firm,

explained to Walla!

Money, that "plants medical marijuana arose due to the demands of the Ministry of Health, the passage of goods medical marijuana in clean rooms, the world has become the pharmaceutical and food industries. This demand has led to extensive investment of Industrialists and Entrepreneurs, still absorb huge losses as a result of navigating around regulatory requirements.



Amputation of the entire process is not "Only frustration for all the entrepreneurs who have invested their energy and the investors who have invested the best of their money, but sheer irrationality in everything related to the direction in which the entire global cannabis industry is heading."

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CPA Doron Arami, Director and Head of Medical Cannabis BDO: Most of the losses, due to future returns (Photo: Liel Arami)

The quality will go down, the price will not

MK Sharan Hashakel's bill seeks to regulate the medical cannabis reform, among other things, by issuing a charge for the production of medical cannabis products in clean rooms that require moving to factories, and issuing them at a pharmacy.



Meir Ariel, CEO of Basalt Pharma

, which owns the largest cannabis plant in Israel and even began planning to build another plant in Caesarea, which is estimated to cost NIS 100 million, told Walla! Money, "Whoever thinks the price will go down following the bill, As it is, wrong and do not understand the direction of the industry and the field in general.



It is enough to see what is happening in the world to understand the directions. But the question is what will this bill lead to? And the answer is to lower the quality of medical cannabis products, and stop all the developments and knowledge of the field. It should be remembered that before the reform of the Ministry of Health there were about 4 medical cannabis products of oils, and today basalt alone has about 58. This comes as a result of research and development done in medical cannabis factories and as a result of the reform.



Therefore, this decision means placing a position on the Israeli cannabis industry, and especially on what was supposed to be its highlight - exports, which without factories would not be possible.



There are currently about 100,000 patients, the vast majority of whom do not complain about quality, nor about price.

But the price will be high even after the bill and will continue to rise, as is happening in the world.

But if all this bill is intended to provide a cheaper price, then the Knesset member is honored to turn to solutions in front of the state, such as the health basket, or any other subsidy.

But do not put your hand in the pocket of the public savings money invested in the industry or the money of the entrepreneurs and investors who put blood, sweat and tears based on the regulator's decisions.



We are already preparing with a lawsuit against the state, but I can not understand why it constantly has to come in this direction?

"Every two years, the previous decisions are replaced and it is impossible to manage and be conducted in this way."

David Pepo, Chairman of the Pharmacists' Union: "The Whim of a Young Politician" (Photo: Yachz)

The pharmacists do not believe

David Pepo, chairman of the Pharmacists' Union

, added to Walla! Money: "This is a whim of a young politician, who relies on a handful of medical cannabis patients who feed her with the thought that she will win the sympathy of this public, and meanwhile play in public health without any understanding of industry. Medical cannabis and its meaning.



We all remember how the medical cannabis market was run before, and what was the quality of the medical cannabis products, most of which even failed to pass the initial screening required for the possibility of selling them, as defined by the Ministry of Health.



I do not understand how the Ministry of Health, which conceived and implemented the garden reform, invested a lot of money in complying with the requirements of the Ministry of Health for the issuance of medical cannabis, and which cooperated fully with it, lends a hand. "

Nitzan Horowitz: Israblof of the Ministry of Health (Photo: Flash 90, Yonatan Zindel)

The Ministry of Health is playing on time

One of the interesting issues surrounding the reform is the position of the Ministry of Health. Mazur, MK Ran mind is part of the coalition, while the proposed law appears to contradict the position of the Ministry of Health.



Question 'Walla money, how the Minister of Health, Nitzan Horowitz, one bill contradicts the position of the professional level of office switch Ministerial Committee office responded "Support is for a preliminary reading only, subject to the removal of the addictions clause and the following reservations: will not be promoted on first reading before returning to the Ministerial Committee on Legislative Affairs.



The Ministry of Health and the Minister believe that although the proposal is intended for a proper purpose - to regulate the cannabis market for medical use, the content of the proposal and the fact that it does so through primary legislation, are not necessary and may even be harmful.



The king way to regulate the issue is regulatory regulation in regulations and not in primary legislation. Under the direction of the minister, the ministry began work on regulations and therefore believes that the bill will be superfluous. "



In other words, the Ministry of Health explains that this is a kind of "Israbloff" The ministry will support the reform in a preliminary reading, with the goal that it will not reach the continuation of the process at all.



Medical cannabis patients are at this time the only ones who support the bill of the mind, and push for its passage in primary legislation in the Knesset.

During the discussion after the last request for medical cannabis patients Association High Court, demanding to stop the medical cannabis reform of the Ministry of Health, the judges expressed willingness to support the state's position.



It should be noted that the bill was not discussed yesterday (Tuesday) Health Committee of the Knesset, but the committee For Addictions and Drugs, headed by MK Ram Shefa of the Labor Party (formerly a Knesset member on behalf of Blue and White), who along with the intellect promoted legislation for legalization, legislation that did not succeed in the Knesset.

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Source: walla

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