Flora Growth Corp. (NASDAQ: FLGC) on Wednesday said it signed an agreement with Curaleaf Holdings Inc. (TSX: CURA) to distribute medical cannabis products in Germany, which expanded its market earlier this year.

The deal will allow Flora to import Curaleaf’s medical strains through its EU-GMP certified facility, according to a company news release.

“We are eager to partner with Curaleaf to bring their premium cannabis products to the German market,” Flora Growth Chairman and CEO Clifford Starke said in a statement.

Germany’s medical cannabis sales are expected to hit $450 million in 2024, and the legal market could reach $4.6 billion by 2034, according to data from Prohibition Partners and The Niche Research cited by Flora.

Separately, Flora is launching a parallel import business in Germany and the European Union to provide pharmaceuticals “at competitive prices.” The company tapped Manfred Ziegler, former managing director of CC Pharma, to lead the new unit.

“Our vision is to become a market leader in the European pharmaceutical and medical cannabis market,” Starke said. “Our current access to an extensive distribution network of German pharmaceuticals represents the perfect platform to launch the PI Business.”

Germany’s parallel import market, including exports, is close to $4 billion with 47% of exports to the EU originating from Germany, according to data from the European Affordable Medicines association cited by the firm.

Flora previously said it plans to focus on Germany after the firm bought TruHC in April to give it EU-GMP certified production capabilities.

The moves come as multicountry operator Curaleaf (TSX: CURA) (OTCQX: CURLF) is increasingly planting stakes abroad, especially when it comes to building brand recognition and drive prescriptions in Europe.

CEO Matt Darin told investors in May that Germany’s medical cannabis patient growth had exceeded hopes since reforms took effect, though other industry players already tempered their expectations for the nascent market. The company projected its international revenue projections to reach $100 million in 2024.

While Flora’s revenue fell 27% year-over-year in its second quarter, mostly due to slumps at its JustCBD brand, the company has been focused on its European expansion to drive future growth.

IM Cannabis Corp. (CSE: IMCC) (NASDAQ: IMCC) announced that the preliminary sales results in Germany by its German subsidiary, Adjupharm GmbH (IMC Germany), for the third quarter of 2024 have significantly exceeded expectations, showing a remarkable 50% increase in revenue compared to the second quarter, where IMC Germany sold about C$3.5 million. Adjupharm GmbH distributes cannabis to pharmacies for medical cannabis patients.

The company said that the outstanding growth demonstrated the successful execution of its strategic initiatives and strong market demand for its products.

“Since April 1^st, one of our key objectives was to ensure a supply chain strong enough to meet the increase in demand.  This preliminary 50% growth is testament, in part, to delivering on this objective,” said Oren Shuster, CEO of IMC. “We are thrilled with our Q3 performance, which not only surpassed our own targets but also highlights the dedication and hard work of our entire team.”

In August, IM Cannabis reported its second-quarter results and Green Market Report wrote that revenue had surged for the company, up 12% year-over-year to C$14.8 million from C$13.2 million. Sales in Germany as mentioned were up 129% to C$3.5 million since the country legalized personal possession of cannabis and nonprofit marijuana clubs in April. With that new sales baseline, Germany now makes up 24% of all company revenue.

IM Cannabis also noted that since the partial legalization of cannabis in Germany came into effect in April 2024, the demand for cannabis products in pharmacies has increased significantly, emphasizing the importance of a robust, reliable supply chain.

Also in August CFO Uri Birenberg said that cannabis flower sales prices also increased 21% as a result of German legalization, to C$6.09 per gram. This happened while IMCC slashed operating costs during the second quarter by 29% to C$3.7 million, as the company searched for the right financial balance to achieve profitability.

Looking ahead, the company said in its August MD&A that it intends to leverage the foundation established by Adjupharm, its state-of-the-art warehouse and EUGMP production facility in Germany, its vast knowledge of the cannabis market and customers’ preferences and its network of distribution partners to expand into other jurisdictions across the continent.