Israeli Health Ministry Approves First Medical Vape

It is big news in Israel. And it is going to have global impact on all medical markets. Israel’s health ministry has just approved the country’s first medical cannabis vaporizer. Created and now allowed to go to mass market by Kanabo Research, the device is designed for dosing control.

This is certainly not the only “medical” vape on the market, even though it appears to be the first one approved by any health ministry. But look for the VapePod to make waves in every single medical cannabis country around the planet.

WHY IS THIS SUCH BIG NEWS?

First of all, the vape market in general is a cannabis tech goldmine. It should not be confused with the e-cigarette market, although the two share common roots. The vape boom began in the United States in 2014. Legal state markets began producing oils and concentrates. Say no more. In the interim, a whole subculture, if not business vertical has been born. And blossomed. As far as sexy cannabis accoutrements go, the vape has already become an American fashion statement. There are designer models in California that the stars cannot be without. Of course.

But as usual, where there is a recreational market to be had, medical lags behind.

Except, as it turns out, in this case. Kanabo is already partnered with a US company. As a tech export, it does not run afoul of the current plant and medication export ban. And there is a world that is waiting, near and far from the United States.

See Canada, Germany, and, of course, Australia, outside of Israel.

There is a reason that Kanabo, a small, startup-nation wunderkind, is moving fast. Investors have spent literally hundreds of millions of dollars on investment in this space. Being first out of the gate right now, particularly in this climate, is a winning sales pitch no marketer could ever hope to randomly match.

WHERE IS THE BIGGEST OPPORTUNITY?

This is medical cannatech. It can be exported everywhere. And clearly the US is a big market that is drawing the company’s attention quickly. But both the US, even in California, and Canada have no mandate to cover either drug or medical devices to consume it under health insurance.

As such, this vape, which falls into the range of “pricey”, is yet another expense to be borne by patients outside of Israel.

The one exception to all of this? Germany. And now the race will be on between market leader and local incumbent Storz and Bickel. Protecting market share is just one issue. The race to expand a domestic user base is on. And it is large. And also covered by public health insurance.

As such, Germany is absolutely going to be the battleground, the first of its kind, for a medical tech bake-off that will be avidly watched—and of course, sponsored, globally.

WHY IS THIS DISCUSSION SO IMPORTANT RIGHT NOW?

Medical use is just coming into its own in Europe in particular. The standards being set by Germany are going to determine the shape of the market. For a competitive tech battleground to occur here is actually good for everyone. Storz and Bickel is a German company with a 20+ year reputation in this space. They have reliably supported and supplied a market for over a generation with the legendary Volcano. They also have a medical model—the Mighty.

There is little doubt that the VapePod is heading straight for this market too.

That battle for market share will begin to show up in the advocacy campaigns now afoot as patients battle for access and insurers begin to streamline coverage applications. It will also spill over into other areas, including the ongoing conversation about cannabis as a legitimate medication.

And that is good for everyone. No matter where they sit on the spectrum of “legalisierung” as they say auf Deutsch.