Founders of Oscar Capital
The size of the medical cannabis market in Europe is estimated at about $ 5 billion and is expected to reach $ 13.4 billion by 2027.
LONDON, UK, June 20, 2022 /EINPresswire.com/ – The size of the medical cannabis market in Europe is valued at about $ 5 billion and is expected to reach $ 13.4 billion in 2027, this represents a CAGR of 22% from 2022 to 2022. Cannabis is gaining momentum across Europe with the growing recognition of the medical benefits and therapeutic applications of cannabinoids to treat chronic diseases such as cancer side effects, neurological conditions, pain, Anxiety and Depression. There has been a recent increase in the publication and presentation of intellectual property in the industry which is showing signs that the industry is evolving towards a richer IP domain with a strong focus on innovative endocannabinoid system-targeted therapies.
It is a market that is still in its early stages of development and is also fragmented. However, rapid growth is driven by market demand and a favorable legal and regulatory landscape that has led to the legalization of medicinal (and sometimes recreational) use in a growing number of countries. . The industry represents an exciting but difficult to navigate investment opportunity.
So far, investors have resorted to the public market to expose themselves to the industry and especially to North America. However, since its peak in 2018, the global cannabis index has fallen by more than 80%. The vast majority of these public actions are concentrated in the United States and Canada, whose entrepreneurs, investors, and political activists did much to generate the modern cannabis industry. But this was to be followed by a market bubble that would eventually burst once the reality of obstructive and slow-changing regulations began, as well as the inevitable occurrence of operational missteps.
Unlike other sectors of the investment industry, private capital has largely been left out when it comes to investing in cannabis over the past decade, especially in Europe. However, as downward pressure on cannabis stocks continues, private sector activity in the sector is gaining momentum. Private market placements in early-stage medical technology companies offer long-term investment horizons that align with future legalization prospects and maturing consumer sentiment while facilitating scientific innovation. Thus, these private companies seem to be protected from the growing pains of a young and emerging sector that continues to suffer from stock volatility.
However, it could be argued that all this is to be expected from a completely new and disruptive segment of the industry that has revolutionized so many areas, including medical and pharmaceutical products. And now that the basics have been tested and critical lessons learned, there is a significant opportunity for quality-seeking investors and serious business people and scientists to capture the great opportunities of the cannabis industry.
There are two ways to invest in the legal cannabis market through private equity. The first is to make direct investments, but this involves two main risks; one is related to the lack of diversification and the second is related to the supply and selection of your investment. The second is to invest through a private equity fund that leverages its extensive network to obtain bids, use professional technical / scientific skills to carry out due diligence, and oversee and feed companies in its portfolio.
With 2 funds on the market, the MEDCAN Fund (the only EIS fund targeted at the industry) and the Oskare I Fund, Óskare Capital is the leading provider of investment solutions in the private medical cannabis markets. Headquartered in France and the United Kingdom, the team believes that this new and sustained wave of cannabis wealth creation will take place in Europe and in the private medical and pharmaceutical markets. Here investors will find a large number of companies developing products, technologies and services that are undergoing rigorous testing and adaptations to market preferences, which will take place in the coming years. This wave of companies will form the basis of the vital infrastructure needed to fully exploit the potential of medical cannabis and the health benefits that can be achieved through the endocannabinoid system. European countries, despite being at the table later than the US and Canada in recreational cannabis, are taking the lead in creating regulations responsible for medical cannabis and the continent is expected to be the world leader in this area over the next decade.
“With the medical and pharmaceutical industry placing more emphasis on R&D and data-driven decision-making, there are a wealth of potential benefits in terms of innovation, value creation and the accumulation of knowledge and experience. The acquisition of GW Pharmaceuticals by Jazz Pharma for $ 7.2 billion and the acquisition of Pfizer for $ 6.7 billion in Arena Pharmaceuticals in 2021 are just the beginning of this potential that is being realized. ” , says Gaetano Insalaco, co-founder of Oscare Capital.
Óskare Capital has also found that valuations in private markets are much more based on fundamentals such as good and protectable intellectual property, mature management teams and growing consumer bases, and much of this can be attributed to the fact that private capital is largely institutional and institutional. not prone to the same volatile patterns of money from retail investors.
More information at https://oskarecapital.com
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