Despite medical cannabis being approved for therapeutical purposes since 2017, adoption rates are still low. To some extent, this is the result of the complex prescription processes that potential patients have to go through.

With the launch of its own telemedicine platform, telecan°, Cantourage is planning to change that. In detail, telecan° is connecting potential patients with doctors that offer personalized therapies based on medical cannabis, while at the same time handling the necessary appointment and billing management, trainings and other backoffice tasks. Further, issued prescriptions are directly sent to a pharmacy with the necessary product in stock, which is essential as availability of strains can strongly vary, resulting in significantly shorter waiting times for patients.

While we don't expect any significant financial contributions from the platform by itself (eNuW: € 100 for first ~30 minute consultancy session and initial prescription, € 20 for follow on prescriptions), it, coupled with educational/awareness initiatives e.g. together with Purize, should allow Cantourage to take an active role in developing the medical cannabis market.

The planned de-classification of cannabis as a narcotic drug (BtM) should further accelerate this trend. Once the "Cannabis Act" becomes effective (eNuW: early 2024e), Germany will not only allow adults to own 25 grams of cannabis, grow up to three plants and establish non-profit cannabis clubs but cannabis will also loose its narcotic drug status. As a result, getting a prescription for cannabis should become as easy as getting one for ibuprofen 600. Through this, medical cannabis could also become part and benefit from the German e-script universe, which just launched in July this year.

What's more, Cantourage is executing on the targeted ramp-up. The company has singed long-term agreements with more than 60 grower partners and is expanding its dronabinol footprint across Europe through a cooperation with a leading pharmaceutical wholesaler in Austria. As a result, the company is seen to strongly grow its top-line (eNuW: 71% CAGR 2022-25e) while already achieving EBITDA break-even in FY23e.

We reiterate our BUY rating with a new € 12.5 (old: € 12), based on DCF.