Israel Desks - February 2020 Edition

6 Hebrew University discovered the cannabinoids, Israel has been the cutting edge when it comes to R&D of cannabis products. Israel has the suitable climate, talents and experience in cannabis research and production in order to build a successful industry” adds Shmueli.” Maria Berkovits, Partner at international law firm Pearl Cohen , adds: “Israel’s characterization as a country of pharma and R&D, together with its climate suitable for the cannabis plant, provide a foundation for the high level of interest in the field.” “For medicinal cannabis and cannabis ancillary companies (transportation security; data privacy and control; payments processing), Israel will prove to be a leading incubator of companies to develop the leading products and to attract venture investment,” say s Matthew Kittay - Partner, National Co-Chair M&A team in the New York office of Fox Rothschild . Mark Selinger, a New York Partner at McDermott Will & Emery , agrees: “The Israeli medical cannabis sector is getting great interest from foreign investors, largely due to the relativematurity (10 years +) of themarket in Israel,compared to other jurisdictions. Because of the restrictions placed on cannabis by the Federal government in the US, the market there is just getting started, and even Europe (Germany, UK) are just catching up.” Cannabis for medical use was first approved in Israel by the Ministry of Health in 1992 and a formal national medical cannabis program was created in 2007. Israel is currently transitioning to a new framework for medical cannabis regulation. Government Resolution No. 1587 - Cannabis for Medicinal Purposes and Research (CMPR) was issued by the Ministry of Health in June 2016, aiming to increase medical cannabis accessibility and standardization. It was in pilot mode since April 2018 and has been in full effect since April 2019. The medical cannabis market in Israel is expected to grow rapidly after the completion of the pilot period for the CMPR. In November 2019, the Ministry of Health announced it would begin allowing the importation of cannabis into Israel to alleviate the medicinal cannabis shortage, Within 8 weeks, in January 2020, InterCure Ltd. has signed a cooperation agreement with North American company Tilray, a leading global From approval to export – Israel’s story