Shares of Tilray rallied by nearly 20% on Tuesday after the company announced details of a deal with Grow Pharma to import and distribute its medical cannabis products in the United Kingdom.
Markets have reacted strongly to the news with shares rallying significantly over the course of Tuesday’s trading.
Tilray expects to have a range of GMP-certified, medical cannabis products available for patients in the UK by March 2021. Patients looking to use medical cannabis will have access to Tilray products in the UK by obtaining prescriptions through private practice or the National Health Service (NHS).
“This partnership with Grow Pharma provides patients in need access to a sustained supply of GMP-certified, high-quality medical cannabis and is an important step in improving access in the UK,” Tilray CEO Brendan Kennedy said in a statement.
Grow Pharma is a leading UK medical cannabis distributor, part of the Grow Group. Grow Group PLC exists to unlock the medical potential of cannabis for those who need it though three business units: Grow Pharma, Grow Trading and Grow Biotech.
Grow Pharma CEO Pierre van Weperen also noted the agreement provides U.K. patients with “a secure and sustainable supply of the highest-quality medical cannabis products.”
This deal is the latest step taken by Tilray to expand its market share in the cannabis space. In December, Tilray announced it will merge with Aphria in an all-stock deal to create the largest cannabis company in the world when the deal is finalized.
Sascha Mielcarek, Managing Director of Tilray Europe, said, “As demand continues to ramp up in the UK, Tilray is well-positioned to be a leading supplier of medical cannabis products. Regulations are progressing as more and more countries across Europe are recognizing the benefits of medical cannabis and its potential to improve patients’ quality of life. We’re pleased to reaffirm our commitment to delivering medical cannabis to patients in the UK and look forward to offering a variety of GMP-certified, pharmaceutical-grade products in the coming months.”