Stenocare – a Danish comet in medicinal cannabis

When medicinal cannabis was legalized in Denmark as an experimental scheme in the summer of 2017, the three founders of Stenocare, CEO Thomas Schnegelsberg, Søren Kjaer and Rolf Steno, decided: They wanted to build a business that became the market leader in medicinal cannabis.

In front of them was a huge task in both developing a product and establishing a completely new market: “No one in Denmark knew anything about the area – cannabis had been illegal until then,” says Thomas. Therefore, the trio turned their focus away from Denmark and quickly established good contacts in Canada, which back then was the leader in the field of medicinal cannabis.

Approved in record time

After a stay with the new business partners in Canada where Stenocare gained access to crucial know-how, they returned home to Denmark: “Our ambition was to be the first with a product on the Danish market,” says Thomas. In December 2017, they received permission to grow medicinal cannabis. The next challenge was to get a product approved in Denmark.

“It is an incredibly extensive process to get prescription medicine approved, which usually takes 5-10 years and is very costly. But because medicinal cannabis was legalized as an experimental scheme, the rules were more relaxed. After just seven months, we got a product from our Canadian partner approved, and in the summer of 2018, we were able to launch three prescription cannabis oil products on the Danish market.”

Interrupted by a Canadian bump on the road

Cannabis oil took Denmark by storm, and before long Stenocare had a market share of 85 per cent. Everything looked bright, but suddenly a challenge arose: the Canadian manufacturer received a note from the Canadian Medicines Agency for violating some regulations. However, the Danish Medicines Agency quickly established that the products posed no danger to patients. However, Stenocare did not want to take any chances and immediately decided to end the collaboration. “Here, our legal investments really benefitted us, and we came out of the agreement in the best possible way. Even though the big Canadian company provided an army of lawyers,” says Thomas smiling.

High-tech production in Randers

Today Stenocare has found new business partners and imports products produced in Canada. At the same time, they are building up the cultivation of cannabis plants and aim to get their own product approved by the Danish Medicines Agency within the next year.

“Over the past four years, we have developed and invested in our own production facility in Randers. Everything is fully automatic and, in many ways, resembles a laboratory. We use the latest and most advanced technology because there must be 100 percent control over the processes and quality when producing prescription medicine,” says Thomas.

High standards in the Danish pharmaceutical industry have a big star around the world with flagships such as Novo Nordisk and Lundbeck. “Denmark is world-renowned for producing medicines of a very high standard. At the same time, we have a very skilled pharmaceutical board, so we are used to being very thorough in our work. When we enter new counties, such as Sweden and England, where we have already received permission to sell medicinal cannabis, they sit and nod in appreciation because we have all the details under control. We are very proud to be part of this medicinal elite”, says Thomas.

Coca Cola, Nike and Stenocare?

When the trio looks into the crystal ball, the goal is to be a leading supplier in around ten countries in Europe within the next five years: “The dream is to create a brand like Nike and Coca-Cola, which everyone knows are predecessors in their field. It should be such that when you hear ‘Stenocare’, you know that it is medicinal cannabis of the highest quality. This is what people should think of when they hear the name Stenocare”.

Stenocare & Lund Elmer Sandager

Stenocare’s contact person in Lund Elmer Sandager is Partner Ulrik Bayer, who advises the company on corporate law, contracts, trademark law and disputes. Ulrik and his team also helped Stenocare with the stock market listing: “The collaboration has been valuable in the company’s various phases – for example in finding the right company structure, navigating the contractual aspects, avoiding over insurance and drawing up contracts with suppliers,” says Thomas. “We received invaluable help from Ulrik, whom we trust a lot and with whom we have a really good chemistry and familiarity.”

Brief about medicinal cannabis

• Became legal in Denmark on 1/1 2018 for a testing period of four years and has since been extended another four years. Danish production is made permanently legal.
• Can not cure diseases, but can, among other things, relieve pain, so patients get an increased quality of life
• Requires a prescription from a doctor for patients to buy it
• Is produced in many different forms, e.g., oils, tablets, and dried flowers

This article was published in Ind§igt no. 26 in June 2022.