InterCure
TASE:INCR
₪
2,37
₪
₪0,00 (0,00%)
2,37
₪
₪0,00 (0,00%)
End-of-day quote: 04/09/2026
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InterCure Company Info
EPS Growth 5Y
0,00%
Market Cap
₪0,13 B
Long-Term Debt
₪0,11 B
Quarterly earnings
04/17/2026
Dividend
₪0,00
Dividend Yield
0,00%
Founded
1994
Industry
Country
Website
ISIN Number
Website
Analyst Price Target
The Analyst Price Target shows the analysts’ low, high, and average target at a glance.
There are currently no price targets available for this stock.
In the last five quarters, InterCure’s Price Target has risen from ₪0,00 to ₪2,37 - a 100,00% increase.
Top growth stocks in the health care sector (5Y.)
What does InterCure do?
InterCure Ltd. operates in the medical cannabis sector.
The company owns all of the issued and outstanding shares of Canndoc (Canndoc Ltd.), Pharmazone (Pharmazone Ltd.), and Cannolam (Cannolam Ltd.); and other holdings in additional pharmacies and trade houses.
The company (more specifically through Canndoc) is a pioneer in the production (including the breeding, cultivating and processing), manufacturing and distribution of pharmaceutical-grade cannabis and cannabis-based products for medica...
InterCure Ltd. operates in the medical cannabis sector.
The company owns all of the issued and outstanding shares of Canndoc (Canndoc Ltd.), Pharmazone (Pharmazone Ltd.), and Cannolam (Cannolam Ltd.); and other holdings in additional pharmacies and trade houses.
The company (more specifically through Canndoc) is a pioneer in the production (including the breeding, cultivating and processing), manufacturing and distribution of pharmaceutical-grade cannabis and cannabis-based products for medical use. The company is a leader in the licensed production and distribution of cannabis and cannabis-based products throughout Israel, one of the first countries with a governmentally-sanctioned regime for the production, manufacturing and distribution of cannabis for medical use. The company’s intention is to be a global leader in the production and distribution of high-quality pharmaceutical-grade cannabis-based branded products to patients in all territories that permit and regulate the distribution of pharmaceutical-grade cannabis, including Israel, the European Union, and Australia.
The company’s pharmaceutical-grade cannabis products are manufactured using processes that are certified and in compliance with the IMCA standards, including IMC-GMP standards, which are substantially similar to the Good Manufacturing Practice of the European Union (‘EU-GMP’) standards. All of the company’s products are analyzed by IMCA-certified laboratories using established testing procedures that ensure standardized cannabinoid compound ratios and potency, or cannabinoid profiles.
In Israel, the company distributes its products through licensed retail pharmacy locations, where patients may fill their prescriptions on site or have the company’s products delivered directly to their residence. To diversify and expand the company’s global production and distribution capabilities to meet demand in its target markets, the company has entered into agreements to establish joint ventures, supply and distribution arrangements in the European Union and Canada with local producers and distributors that have significant distribution networks. As of December 31, 2023, none of the company’s products have been distributed through any of its distribution partnerships, the company anticipates that it will be able to commence distributions after meeting local regulatory requirements and desired price range. While some of the distribution agreements the company signed with partners in both Canada in both the European union are no longer valid the company is always in the lookout for new strategic agreements with partners in the target markets.
The company plans to have its products distributed globally under the ‘CANNDOC’ brand, produced by the company or through its partnerships, and manufactured under GMP standards. As of December 31, 2023, the company’s products had not yet been distributed through its partnerships. The company’s ability to do so is impacted by various regulatory matters, as regulatory permits and licenses are currently required for the import, export and distribution of cannabis products in the jurisdictions where the company operates.
Through the company’s subsidiaries, the company operates the first and leading chain of private pharmacies focused on medical cannabis in Israel which includes twenty-five pharmacies and stores across Israel, the U.K. and Austria under different brands, including Givol, Max Pharm and Cookies.
On January 31, 2024, the company entered into a share purchase agreement with the shareholders of Leon Pharm Ltd. (the ‘Sellers’, and ‘Leon Pharm’, respectively) to purchase Leon Pharm, a leading, Israel-based pharmacy chain specializing in dispensing medical cannabis in Israel, by way of a share purchase of all of the issued and outstanding share capital of Leon Pharm. Leon Pharm is one of the leading private pharmacy chains in Israel, specializing in the customization of pharmaceutical products and cannabis for patients along with providing a high level of professional service. The transaction is expected to be accretive to the company’s business model and is expected to close upon the fulfilment of certain closing conditions. Upon the completion of this transaction (which, is expected to occur by June 2024), the company will add four new pharmacies to the company’s chain of pharmacies in major cities throughout Israel.
The company had not completed any clinical trials using cannabis or cannabis-based products as of December 31, 2023. The company has received IMCA feasibility approval to initiate nine clinical trials and has commenced one phase 3 clinical trial. The company initiated a phase 3 clinical trial in a leading Israeli medical center to study its product’s influence on cognitive and adjacent capabilities on children who are on the autistic spectrum. Patients’ recruitment for the trial was initiated but was stopped due to COVID-19 challenges, and it is uncertain when and if it will be reinitiated. The company’s clinical studies program experienced significant setbacks in 2020, and 2021 as a result of COVID-19, and at this point, the company remains uncertain as to when the studies will be initiated. Additionally, due to significant delays in the company’s clinical program timeline and changes in market conditions, the company is considering the possibility of canceling the clinical program as it may no longer be relevant to the company’s operations.
Subsidiaries
Intercure has 14 direct subsidiaries:
Canndoc’s operations are focused on the production (including the breeding, cultivating, importing and processing), manufacturing, exporting and distribution of pharmaceutical-grade cannabis and cannabis-based products for medical use.
Cannolam’s operations are focused on the establishing and operating of dedicated pharmacies for the distribution of pharmaceutical-grade cannabis under the brand name ‘Givol’, including ‘Cookies’-branded location. In addition, Cannolam is looking to establish a distribution network for recreational cannabis and cannabis products throughout Israel, primarily through licensing and distribution agreements, to become effective once the recreational use of cannabis for adults over the age of 21 is legalized in Israel.
Pharma Zone’s operations are focused on the management and operation of the Pharma Zone trade house which operates as a distributor of medical cannabis products to pharmacies across Israel.
Bio Max Pharm operations are focused on managing and operating two pharmacies in Holon and Rishon Lezion.
Club Pharm Ltd.’s operations are focused on managing and operating a medical cannabis pharmacy in the commercial center (M-Haderh) in the Emek Hefer district.
My Binyamina Club Pharm 2022 Ltd.’s operations are focused on managing and operating a medical cannabis pharmacy in the city of Binyamina.
GreenLog Global Ltd.’s operations are focused on managing and operating the Greenlog trade house which operates as a distributor of medical cannabis products to pharmacies across Israel.
Doron Pharmacy Ltd.’s operations are focused on managing and operating a medical cannabis pharmacy in the city of Ra’anana.
Maayan Haim Pharmacy 2015 Ltd.’s operations are focused on managing and operating a medical cannabis pharmacy in the city of Bait Dagan. In March 2024, Intercure and its partner in Maayan Haim Pharmacy 2015 Ltd. signed a separation agreement, pursuant to which the company expects to sell its entire stake in Maayan Haim Pharmacy 2015 Ltd. The company expects the separation to be completed in the second half of 2024.
Ahuza Pharmacy D.Y.’s operations are focused on managing and operating a pharmacy in the city of Ra’anana. The Ahuza pharmacy is yet to be approved for selling medical cannabis.
Orni Pharmacy Ltd.’s operations are focused on managing and operating a pharmacy in the city of Tel-Aviv.
Arihut Yamim Pharmacy Ltd.’s operations are focused on managing and operating a pharmacy in the city of Ashdod. As of the date of this Annual Report, the company has asserted claims against the prior owners in relation to this company. A legal dispute is ongoing.
Amidar Pharmacy Ltd.’s operations are focused on managing and operating a pharmacy in the city of Naharia.
Medicine Center G.G Pharmacy Ltd.’s operations are focused on managing and operating a pharmacy in the city of Bnei Brak.
Strategies
The company’s strategies are to focus only on high-quality cannabis products; focus only on territories that are fully-regulated medical-use cannabis markets; build a leading global brand; establish distribution networks in all territories with full regulation of the medical-use cannabis industry; and optimize the company’s supply by diversifying production capabilities and maintaining inventory to meet demand.
Products
The company’s product portfolio consists of differentiated pharmaceutical-grade cannabis product brands. The company develops its product brands to treat a wide variety of medical conditions and optimize results across a diverse population of patients. Patients choose the company’s products because the company is known for producing pure, precise and predictable pharmaceutical-grade products.
Cannabinoids, terpenes and other bioactive compounds create beneficial therapeutic results when they work in synergy, an effect known as the ‘entourage effect.’ The company does not create its cannabinoid profiles by combining isolated cannabinoid compounds from various sources. Instead, the company utilizes breeding and cultivation techniques to create stable and consistent levels of target cannabinoid profiles within each plant.
The company’s portfolio of products is characterized by well-defined and reproducible cannabinoid profiles, formulated for stability, which are available in dried inflorescences or liquid oil form. Each of the company’s products is derived from cannabis that is bred and cultivated in accordance with applicable GAP standards and manufactured under applicable GMP standards.
Cannabinoid Profiles
The company’s products are differentiated by profiles that reflect specified ratios and concentrations of the two principal cannabinoids in pharmaceutical-grade cannabis: CBD and THC. There are more than 100 identified cannabinoids, and the company measures and analyzes their concentrations in the company’s products. The company plans to measure and analyze any new cannabinoids that are identified in the future.
The company takes a scientific approach to its product development. Cannabis strains, selected for their biochemical composition, are systematically bred, cultivated and processed to produce a specific profile. The company’s products are tested using established laboratory testing procedures that ensure standardized cannabinoid ratios and potency.
As the landscape of the medical-use cannabis industry continues to evolve with the rapid pace of research and discovery, the company continues to experiment with developing new and unique ratios of cannabinoids and other bioactive compounds for use in the company’s products. The company’s extensive genetic bank will give the company an advantage in developing new products with optimal cannabinoid profiles.
Delivery Formats
The company offers products in established delivery formats that facilitate the absorption of active compounds in a patient’s body.
The company’s portfolio of cannabis-based products for distribution in Israel includes the following delivery formats:
Dried cannabis inflorescences, where the overall weight of cannabis (net) in each package is 10 grams.
Cannabis extract mixed with oil, sold in bottles where the overall volume of product is 10 ml.
The company plans to evaluate other markets, and develop products using delivery formats that address patient needs and preferences and comply with applicable regulatory requirements. With the development of scientific research and regulatory momentum, the company may develop products in the future that use other delivery formats, such as capsules or patches. The company plans to continue to develop formulations and delivery methods to achieve targeted delivery and sustained release.
The company invested in launching and creating demand for its product brands, including by co-branding certain of the company’s products with its exclusive partners. The company’s packaging displays ratios of specific cannabinoid compounds and the required disclosures for each relevant jurisdiction of distribution.
The company’s packaging for products to be sold in Germany and other jurisdictions will be similar but will reflect the applicable regulatory requirements in those territories.
Operations
The company’s production operations include 355,000 square feet of growing and production area which together can produce up to 10 tons per year. Assuming the company’s facilities are fully developed and operate at their maximum capacity, and all regulatory approvals are received, the company’s operations allow for a maximum production capacity of over 100 tons of high-quality medical cannabis. This system enables the company to be flexible and efficient, and to meet the standards required to execute commercial exports from Israel and to serve growing demand in Israel and around the world.
In addition, through strategic partnerships with leading license producers, the company may have access to additional high quality medical cannabis on demand.
Breeding
The company’s primary intention is to produce consistently, under the strictest standards, the highest-quality inflorescences from the cannabis plant, which the company uses as the raw material for its pharmaceutical-grade cannabis-based products. The company focuses on breeding genetic profiles that maximize production yields and maintain stable and consistent cannabinoid profiles.
The company engages in the human-directed evolution of cannabis populations through the selective breeding and nurturing of various species of the cannabis plant. To achieve this, the company leverages its extensive patient use and experience database to select and breed specific genetic profiles with the goal of isolating unique traits that may lead to improved patient outcomes.
Over the course of more than 15 years and numerous plant generations, the company has bred a wide assortment of cannabis strains covering a variety of cannabinoid profiles. The company has developed a proprietary genetic bank, covering dozens of unique cannabinoid profiles, from which the company extracts growth batches for its breeding facility. The company’s breeding is conducted in incubation rooms that are separately housed and therefore isolated from the rest of the company’s cannabis production facility.
During the year ended December 31, 2021, the company applied and received full protected breeding rights on five of the company’s strains. The company is still in the process of applying for more protected breeding rights while the company expends and stabilizes its genetic bank and the company intends to apply for protective rights in any jurisdiction in which such rights may be registered.
Cultivation and Processing
In order to maintain a high degree of consistency across the company’s production batches, the company carefully optimizes all elements of the cultivation process, including the light spectrum, temperature, humidity, radiation, irrigation, air circulation and soil-less substance in which the company’s plants are grown. Cultivation is not conducted in outdoor areas or in the open soil. At the company’s cultivation facilities, the company nurtures and cultivates production batches as clusters of single-genus cannabis inflorescences that are genetically identical, cultivated under the same protocols and harvested at the same time. The cannabis batches are isolated in pots and are tested by licensed third-party laboratories to ensure their quality and consistency.
Through years of research and development, the company has developed a unique climatized greenhouse approach incorporating the best of modern cultivation techniques and processes that meet the IMC-GAP standards while taking advantage of the cost efficiencies associated with utilizing the natural environment. The company’s climatized greenhouse technology is an improvement on the traditional greenhouse that enables compliance with the requirements for the production of pharmaceutical-grade cannabis. The climatized greenhouse technology enables the company to control fully all aspects of the climate and other conditions affecting the cultivation of the company’s cannabis crops. A key element of optimizing production yields while maintaining a standardized outcome is precision-based crop maintenance, which requires consistent inputs of irrigation and fertilization while controlling for diseases and pests. The company controls the first two inputs mainly through a centralized irrigation control center that utilizes modern sensors to monitor and regulate the daily quantity of water and fertilizer administered to each production batch.
The company produces and packages bulk product in its facilities, by harvesting the bloomed flower, trimming excess leaves, drying and curing inflorescences, and packaging the processed inflorescences into bulk quantities.
In addition, since the company adheres to the IMC-GAP and IMC-GSP standards, it has established a compliance regime to meet its regulatory requirements. A quality assurance manager must sign off on each product batch that is released from the company’s cultivating facilities which subsequently undergoes a physical inspection by the head of quality assurance. Any changes in the quality assurance process or to the cultivation facility must be authorized by the head of quality assurance and documented. The facilities are also subject to seven inspections per year from a third party inspector and four inspections per year by the head of quality assurance. Lastly, the cultivation sites are also subject to yearly inspections for GACP compliance by a third party for the EU-GMP certificate.
Cultivation
The company’s production system (wholly-owned or through partnerships) consists of two active facilities in Israel, owned and operated by the company. Through the company’s partnerships, the company has access to production facilities that, assuming that the facilities are fully operational at their maximum capacity and all regulatory approvals are received, can produce over 100,000 kilograms of high-quality medical cannabis per year.
Israel
The company has established two partnerships with kibbutzim in Israel for the purpose of breeding, cultivation and harvesting of pharmaceutical-grade cannabis.
The Northern Kibbutz
The company has rights to its production facility in northern Israel through a joint venture with Beit HaEmek Kibbutz, a kibbutz located in the northern region of Israel (the’ Northern Facility’). The company’s relationship with The Northern Kibbutz is governed by a partnership agreement (the ‘Northern Kibbutz Agreement’, establishing the ‘Northern Kibbutz Partnership’), entered into in May 2015. The company holds 70% of the voting rights and rights to profits and losses of this partnership and the Northern Kibbutz holds the remaining 30% of such rights. The operation of the venture is done by an unregistered corporation according to the Northern Kibbutz Agreement. The Parties entered into an amendment agreement, pursuant to which and subject to the IMCA approval and the approval of the Israeli tax authorities, the operations of the Northern Facility will be transferred to an ‘Agricultural Cooperative Organization’ owned by the parties as mentioned above (70% Canndoc and remaining 30% of the Kibbutz). As of December 31, 2023, the application for such an amendment was pending IMCA approval. During this time period and regardless of the outcome of the noted approvals, the parties agreed that the operations will continue as usual.
The Southern Facility
The company has also entered into an agreement with Kibbutz Nir-Oz, a kibbutz located in the southern region of Israel (the ‘Southern Facility’), to establish a large-scale production facility in southern Israel, which will also utilize climatized greenhouses and operate in tandem with the company’s facility in northern Israel. The company’s relationship with the Southern Facility is governed by a partnership agreement (the ‘Southern Facility Agreement’, establishing the ‘Southern Facility Partnership’), entered into in April 2019. The company holds 74% of the voting rights of this partnership and the Southern Facility holds the remaining 26% of such rights. The Kibbutz will be eligible to 26% of the profits of the partnership, once it starts generating revenue.
Under the terms of the Southern Facility Agreement, the Southern Facility has agreed to make the approximately 540,000 square feet of land plus operational facilities available for use by the Southern Facility Partnership during the term of the Southern Facility Agreement. The company also has the option to expand the land made available up to approximately 1 million square feet or a total of approximately 1.7 million square feet including operational facilities, which option must be exercised before April 2024. The Southern Facility has rights to lease the site, which it holds pursuant to a lease, dated June 22, 2016, between the Southern Facility and the Land Administration.
Further, in December 2020, the company received a permanent license from the IMCA for the company’s facilities located in the Southern Facility for the handling and possession of dangerous drugs under Sections 6 and 7 of the Israeli DDO. The license permits the company to breed and cultivate cannabis plants and process inflorescences and plants under IMC-GAP-quality conditions, subject to customary limitations.
The company plans to bring its facilities located in the Southern Facility to their full operational capacity subject to increased demand for the company’s products, finalization of export regulations from Israel and the import regulations to the European Union and other regulatory approvals that are required for the expansion of production. The company is in the initial stages of plans regarding the expansion of its capacity in the Southern Facility.
International
Manufacturing
The company uses a GMP-certified manufacturers in Israel to produce its products and the company is exploring its options to diversify the company’s manufacturing through its global partnerships. The company plans to always manufacture the company’s products under conditions that meet the applicable GMP standards, whether in the company’s own facilities or in third-party facilities across all geographies. The company continues to explore the costs and benefits of the company’s contract manufacturing relationships against the costs and benefits of conducting those activities in house.
Exclusive Partnerships
The company has entered into the following partnerships, all of which provides the company with exclusive relationships to distribute the noted products within certain geographical areas. While the partnership are at various stages in their development, the company has yet to fully operationalize any of them and only operate in Israel (although, Organigram, Tilray, Binske and Tyson are the company’s key suppliers and the company has a vast variety of customers (licensed pharmacies) which include Super Pharm. The company’s products are distributed via Novolog, SLE and the company’s owned trade houses, which are all licensed distributors in accordance with the New Regulations.
Cookies
Cannolam entered into an exclusive license agreement with Cookies in 2019 by which Cannolam has the exclusive rights to use the Cookies brand in Israel. Cannolam opened a Cookies branded pharmacy in Jerusalem and one in Be’er Sheva was approved to sell medical cannabis in the third quarter of 2022.
In April 2021, the company expanded its partnership with Cookies by entering into a letter of intent to expand the Cookies brand into Europe. According to the letter of intent, the company will establish joint ventures in European countries that focus on cultivating, manufacturing, and distributing Cookies branded products. In addition, the company is cultivating Cookies branded products at its southern facility in Israel which the company also plans will supply Cookies products to Cookies stores throughout Europe. Sales of Cookies branded products are subject to obtaining all regulatory approvals in Europe, including export permits and product registration in certain territories.
Further, the company entered into a multi-year agreement with Cookies in December 2021 to establish Cookies stores and medical cannabis pharmacies in Austria and the United Kingdom, subject to local regulations. The company’s first store in Austria opened its doors in the second quarter of 2022 while the company’s first store in the U.K. is expected to be open in the third quarter of 2024, due to delays caused by local regulations.
Tilray
Tilray Inc. (‘Tilray’) is a global pioneer in the research, cultivation, production, and distribution of cannabis and cannabinoids, serving patients and consumers in 16 countries spanning five continents.
In December 2019, the company established a strategic collaboration with Tilray for the purpose of providing the company with access to existing and potential markets in Tilray’s operating territories. The collaboration between Tilray and the company consists of a set of agreements with Tilray Portugal Unipessoal Ltd., a wholly-owned subsidiary of Tilray, pursuant to which, Tilray will import GMP-quality medical cannabis products from the company (the ‘Tilray Agreements’). Tilray’s facility in Portugal has an annual maximum production capacity of 25 metric tons of cannabis.
Pursuant to the Tilray Agreements, during a 12-month period that ended on December 31, 2020, the company has an option to purchase from Tilray’s production facility in Portugal, and import into Israel, up to 2,500 kilograms of packed dried inflorescence (GMP-quality medical cannabis) based upon agreed prices and quality standards. The company plans to manufacture and transform these imported materials to Canndoc’s GMP-branded products. Final products will be distributed by Canndoc’s distribution channels to all pharmacies in Israel. In January 2020, the company successfully completed the first ever commercial import of medical cannabis into Israel and have subsequently successfully completed several commercial shipments into Israel while launching the ‘CanndocDiamonds’ family of products.
Further, pursuant to the Tilray Agreements, the company may sell to Tilray, and export out of Israel, up to 5,000 kilograms of inflorescence cannabis, which will be distributed by Tilray under a co-brand and based upon agreed prices and quality standards for a 12-month period that ended on December 31, 2020. The Tilray Agreements contain a provision requiring that the company’s products comply with the EU-GMP Standard. They are conditioned upon the company’s ability to obtain a permit from the state of Israel to export the inflorescence cannabis out of Israel. In December 2020, the company completed the first commercial export of the company’s products, which consisted of several dozen kilograms, to the European Union as part of the Tilray Agreements.
In December 2021, the company learned that Tilray Portugal had sold 500 kilograms of products to another Israeli company, which the company believed violated the exclusivity provision in the agreement between the company and Tilray Portugal. The company exchanged correspondence with Tilray and Tilray Portugal in which the company asserted that Tilray Portugal had violated the exclusivity provision and further asserted that the company’s exclusivity rights remain in full force and effect. The company has not continued pursuing this matter as the Israeli company which acquired products from Tilray entered into liquidation proceedings and its relationship with Tilray no longer exists and the company and Tilray have returned to discussing importing shipments to Israel.
In August 2020, the company entered into an agreement with Aphria for the import of bulk cannabis products from Aphria’s facility in Canada into Israel. Pursuant to the agreement, the company agreed to purchase from Aphria’s production facility in Canada, and import into Israel, up to 3,000 kilograms of ‘bulk’ quality medical cannabis for a period of two years. After the expiry of the initial period, the agreement provides the option to import up to 6,000 kilograms of additional product from Aphria for two additional periods of two years each under the same terms and conditions as during the initial period. The company manufactures and transforms the imported product from into Canndoc’s GMP-branded product and final products are distributed by Canndoc’s distribution channels to all pharmacies in Israel. In November 2020, the company successfully imported the company’s first shipment of the noted products from Aphria into Israel and successfully launched the ‘Canndoc Stars’ family of products. In May 2021, Tilray and Aphria announced the closing of a merger between the two companies, continuing as Tilray.
Organigram
Organigram, Inc. is a leading licensed producer of cannabis.
In June 2020, the company entered into a contractual relationship with Organigram for the purpose of collaborating to develop, import and export medical cannabis products in the state of Israel and across Europe (the ‘Organigram Agreement’). Organigram’s facility located in New Brunswick has a potential annual capacity of 70 tons.
The Organigram Agreement specifies that, subject to obtaining the required permits, the company will import from Organigram 3,000 kilograms of medical cannabis products from Organigram’s advanced indoor facility in Canada (‘Indoor Products’) within a period of 18 months (the ‘Organigram Initial Period’). In accordance with the Organigram Agreement, the company will produce and market the medical cannabis products imported from Organigram in pharmacies throughout Israel and Europe. The company will be provided with the option to import from Organigram an additional 3,000 kilograms per year of medical cannabis products for a period of two years from the end of the Organigram Initial Period, under the same terms and conditions as those in place during the Organigram Initial Period. These products will be marketed under the company’s ‘Canndoc Indoor’ brand and the company, and Organigram, will examine the possibility of selling these products under a joint brand, in compliance with and subject to the IMCA’s instructions. The company will then manufacture and transform the imported product into Canndoc’s GMP-branded product. Final products will be distributed by Canndoc’s distribution channels to all pharmacies in Israel. In August 2020, the company successfully imported its first shipment of the noted products from Organigram into Israel and successfully launched the ‘Canndoc Indoor’ family of products.
The Organigram Agreement provides the company with an aggregate of up to a seven-and-a-half year exclusivity period (in addition to certain other rights and subject to certain conditions) over all of the final Organigram-branded products sold in Israel.
On November 17, 2022, the company entered into a new multi-year agreement with Organigram to continue supply of dried inflorescence to Intercure. The new strategic agreement contemplates up to 20,000 kg of dried inflorescence to be supplied to Intercure’s international supply chain. Subject to the terms and conditions of the new strategic agreement, Organigram has agreed to exclusively supply Intercure in Israel for a period of three years and a right of first refusal for one additional year. Additionally, the parties agreed on certain popular genetics which will be exclusively supplied for distribution into Intercure’s international supply chain, subject to local regulations. Almost 3.5 tons were already imported under the new strategic agreement with Organigram. The new strategic agreement replaces the initial strategic agreement.
Charlotte’s Web
Charlotte’s Web Inc. (‘Charlotte’s Web’) is the owner of one of the largest worldwide CBD brands.
In December 2020, the company entered into a collaboration with Charlotte’s Web, under which are the sole partner of Charlotte’s Web in Israel, and through which its products will be marketed in Israel under a joint brand for the Israeli market, subject to certain conditions, including certain regulatory matters within central European countries and England (the ‘Charlotte’s Web Agreement’).
In March 2022, the company announced a strategic partnership with Altman Health, the market leader with an unmatched shelf space of OTC and nutritional supplements at over 1,700 points of sale, including all major pharmacies. Intercure and Altman Health plan to register market and distribute Charlotte’s Web branded products in Israel following the registration process of Charlotte’s Web’s products with the Israeli Ministry of Health. Although reaching an agreement with Altman Health marks a significant milestone for the company’s CBD expansion strategy, the joint venture has not been established yet due to current CBD regulations in Israel. CBD is still classified as a controlled substance in Israel and meaningful operations are not allowed until it is delisted.
Fotmer
Fotmer Corporation S.A. (‘Fotmer’) is a corporation established in Uruguay that cultivates and produces medical cannabis at a high quality. In December 2020, the company entered into an agreement with Fotmer, under which the company will import from Fotmer approximately 3,000 kilograms of quality medical cannabis products, each year for a period of four years (the ‘Fotmer Agreement’).
Subject to the terms set out therein, the Fotmer Agreement provides the company with a seven-and-a-half year exclusivity period over all of the final Fotmer-branded products sold in Israel.
Clever Leaves
On March 22, 2022, the company announced the execution of an exclusive multi-year cultivation, marketing and distribution agreement (the ‘Clever Leaves Agreement’) with Clever Leaves, a leading multinational operator and licensed producer of pharmaceutical-grade cannabinoids. Over the term of the Clever Leaves Agreement, Intercure will have access to Clever Leaves’ high-THC medical cannabis flower to serve several medical cannabis markets, including the Israeli market. As part of the partnership, Clever Leaves will cultivate Intercure’s high quality strains to launch Intercure’s EU-GMP compliant branded products within the EU, the U.K. and South American markets.
Carma Holdco
On June 23, 2023, the company entered into exclusive multi-year binding License Agreement with Carma Holdco, Inc. (‘Carma’), dba Tyson 2.0 Inc. Under said agreement, that is governed by the laws of the State of Israel, Carma granted to the company an exclusive distribution license to, cultivate, manufacture, sell, market, and distribute all approved products and brands of TYSON in Israel, Australia, the United Kingdom, Germany and other EU countries such as Switzerland (the ‘InterCure’s License’). The company will also have the right to use the name, the marks and the TYSON intellectual property in those territories. In April 2024, the company learned that Carma have teamed up with a third party to exclusively cultivate, manufacture, and distribute TYSON branded THC products such as flower, concentrates and consumables across Germany and the United Kingdom (U.K.), which violated the exclusivity of the InterCure’s License. As of this date, the company is exchanging correspondence with Carma, and in contrary to Carma’s claims, InterCure is asserting that the InterCure’s License and InterCure’s exclusivity rights in Germany and the U.K. remain in full force and effect.
Binske
On December 19, 2022, the company entered into a definitive licensing agreement with Praetorian Global Inc., based in Florida, and the parent company of the award-winning cannabis brand Binske, that agreed to grant InterCure an exclusive multi-year right to cultivate, manufacture, market and distribute Binske-Branded products in major global pharmaceutical markets, including Israel, Germany, Australia and others. As part of the Agreement, Binske will provide the company access to its intellectual property, including genetics, formulations and know-how for cultivation and manufacturing of Binske-branded cannabis products and the company’s facilities. In addition, Binske will provide InterCure with IP relating to extraction formulations and the production of downstream products developed by Binske, and will support InterCure’s team with training of manufacturing and cultivation methods that are tailored for Binske’s exacting standards. Under the terms of the agreement, InterCure will produce and distribute the branded products leveraging its international supply chain using the company’s medical cannabis-dedicated pharmacy chain.
InterCure is of the view that Binske has pioneered the premium medical and recreational markets in the United States through its meticulous focus on standards, quality, and consistency. Lauded?for its proprietary strains, craft ingredients, full product suite of nearly 200 offerings, and best-in-class packaging, Binske offers luxury, artisan-quality products using purposefully sourced ingredients that have earned widespread recognition, making it one of the largest and most recognizable brands in the American market. The company considers Binske’s sophisticated product offerings, coupled with their innovative brand identity, to set them apart from the rest of the marketplace. The agreement brings these award winning products exclusively to Intercure’s Israeli hub to manufacture and distribute all Binske Branded Products under EU-GMP standards, exclusively to the international pharmaceutical space.
Sales and Distribution
Israel
The company’s products meet all of the IMCA standards and are permitted to be sold within all registered pharmacies across Israel that are otherwise permitted to dispense medical cannabis to patients. The company sells its products through pharmaceutical distributors and licensed retail pharmacy locations where patients can fill their prescriptions on-site or have the company’s products delivered directly to their residence.
Fully Owned Trade Houses
In May 2021, the company acquired 100% ownership of Pharma Zone Ltd., a thriving medical cannabis trade house in Israel that distributes the company’s top-quality products to over 100 locations nationwide. In addition, in May 2021, the company purchased 100% of one of the leading operating trading houses in Israel (addition to Pharma Zone), which is authorized to distribute GMP medical cannabis products to pharmacies. The purchase of the trading house will support the company’s vertically integrated model and be an addition to the company’s existing distribution channels.
Altman
On March 1, 2022, the company announced a definitive agreement with Altman Health (‘Altman’), a market leader with an unmatched shelf space of OTC and nutritional supplements in over 1700 points of sale, including all major pharmacies across Israel. The newly formed company, that will be held jointly by the company and by Altman, will focus on the new Israeli CBD product market, following the Israeli Minister of Health’s announcement on February 28, 2022 that CBD will be removed from the Israeli DDO. Although reaching an agreement with Altman marks a significant milestone for the company’s CBD expansion strategy, the joint venture has not been established yet due to current CBD regulations in Israel. CBD is still classified as a controlled substance, and meaningful operations are not allowed until it is delisted.
Bazelet
Bazelet Group holds the largest production facility for cannabis products in Israel that acted according to strict standards as IMC-GMP and EU-GMP. There is a close collaboration between the company and Bazelet, whereby Bezelet provides production and distribution services to the company in the Israeli market. The parties are also developing new product formats together for the international markets.
International
Germany
In June 2019, the company formalized its entry into the German market through a non-exclusive distribution agreement (the ‘German Distribution Agreement’) with a licensed distributor, for the purpose of marketing the company’s pharmaceutical-grade cannabis products in Germany. Despite the elapsed time since this agreement was signed, no distribution of the company’s medical marijuana products under the German Distribution Agreement has yet occurred. The involved parties are diligently evaluating the most viable strategies to penetrate the German medical cannabis sector effectively.
On March 22, 2024, the company announced its intention to launch its inaugural product offerings in the German market in the forthcoming months. This announcement aligns with the company’s strategic objectives to extend its international presence and leverage the evolving regulatory landscape in Germany following the enactment of the Cannabis Act. This initiative signifies a critical step in the company’s efforts to distribute pharmaceutical-grade cannabis products within Germany, responding to both medicinal and adult-use demands. The company’s anticipation of introducing its products in Germany underscores its strategic approach towards capturing emerging opportunities in the global cannabis market, further solidifying the company’s position as a leader in the field.
Austria
On April 4, 2021, the company entered into a partnership with an Austrian entity to operate together in the developing cannabis markets in Austria and Luxembourg. Pursuant to the agreement, the partnership will replicate the successful model of the company’s subsidiary Canndoc in Israel to establish and manage the distribution, marketing, and sales of the company’s products in selected countries in Europe. The partnership’s planned operations will be vertically integrated and will include both online and retail distribution for the company’s branded products.
The company continues to operate its CBD and accessories store in Vienna, which has significantly expanded its product offerings during the reported period.
The U.K.
The company entered into a multi-year agreement with Cookies under which the company expects to establish Cookies stores and medical cannabis pharmacies in Austria and the United Kingdom, subject to local regulations. The company’s first store in the U.K. is expected to open during 2024 as a result of delays caused by local regulations.
The company has also entered into a joint venture with a U.K. company (the ‘UK Partner’). The UK Partner owns a manufacturing plant operating system under the EU-GMP-standard and possesses all the licenses and permits required for the importation and exportation of medical cannabis products to England, Wales, Scotland, Northern Ireland and Ireland. The company owns 51% of the joint venture and the UK Partner owns the other 49%. Subject to the receipt of all required permits and approvals, the company will sell to the UK Partner, and the UK Partner will purchase from the company, all medical cannabis products the company produces in Israel and/or any other territory where the company operates. The company is working to obtain regulatory approvals to sell its products in the territories but has not yet obtained the necessary approvals. The company is considering ending the partnership and exploring alternative routes to access the UK market.
Research and Development
Since 2014, the company has collaborated with various world-renowned research institutions, such as Technion – Israel Institute of Technology, Volcani Center (the research arm of the Israeli Ministry of Agriculture) and other universities and institutions accredited by the Israeli Council for Higher Education. As a result of these collaborations, the company has enhanced its production capabilities, improved and optimized the company’s genetics, and developed additional cannabinoid profiles. The company’s research and development operations also include collaborations with a renowned governmental institute, as well as various research entities, researchers, start-up companies, mature companies and commercial entities holding licenses from the IMCA.
Additional Investments in the Biomed Field
The company has invested in companies in the biomed field. As of December 31, 2023, the company held approximately, 0.03% of the issued and paid-up capital of F.O.R.E Biotherapeutics Ltd., and 0.7% of the issued and paid-up capital of XTL Biopharmaceuticals Ltd. (‘XTL’).
In October 2021, the company signed an investment agreement with Cavnox Ltd. (‘Cavnox’), a private Israeli company that was established on the basis of knowledge developed at the Technion Institute for Research and Development Ltd. which relates to cannabis-based treatment for various types of cancer.
Cavnox plans to operate in two parallel clinical channels:
The first and immediate clinical channel is the medical cannabis route in Israel on the extraction of a cannabis strain that includes within it the molecules relevant to the treatment of the selected indication. Cavnox is advancing in the construction of the clinical trial in this channel for the treatment of chronic lymphocytic leukemia (CLL) with a mutation in the Notch gene.
The second clinical channel is a pharmaceutical route which Cavnox will not use a cannabis strain extract that contains the relevant molecules but will develop a dedicated formulation that includes only the relevant molecules when Cavnox intends to use synthesized molecules as is customary in the pharma worlds.
Competition
Within the pharmaceutical-grade cannabis industry, the company competes directly with manufacturers in Israel, and global manufacturers that are operating in Israel including Breath Of Life Pharma, Ltd. and IM Cannabis Corp., Village farms Crop, Cronos Group, and internationally with local licensed producers such as Bedrocan International B.V. and Aurora Cannabis Inc.
Intellectual Property
The company has submitted trademark applications for the company’s brand and logo in Israel, Canada, the United States and member states of the European Union, and trademarks for the Canndoc brand have been registered in Israel, UK, Poland, Denmark, Germany, and the U.S.
During the year ended December 31, 2021, the company applied for and received full protected breeding rights on five of the company’s strains. The company is in the process of applying for more protected breeding rights in Israel and seek to apply for protective rights in any jurisdiction in which such rights may be registered under the Plant Convention, or any other applicable rules and regulations that provide legal protection, similar to the protection afforded to the owners of technological inventions, to the proprietary rights of breeders in the new plant varieties they breed.
The Israeli Plant Breeders’ Rights Law 5733-1973, which is based to a large extent on the Plant Convention, is regulated by the Israeli Registrar of Plant Breeders’ Rights in accordance with the decision of the Israeli Plant Breeders’ Rights Council. Under the Israeli Plant Breeders’ Rights Law 5733-1973, a breeder is entitled to exclusive rights for registered new plant varieties for a period of 20 to 25 years, depending on the type of plant, and during this period the plant may not be used without the breeder’s permission, subject to a limited number of exceptions. After registration in Israel, a breeder is able to distribute plant species in other jurisdictions that are members of the Plant Convention, while protecting their rights.
Seasonality
The company cultivates its cannabis mostly in climatized greenhouses suitable for the production of pharmaceutical-grade cannabis. Using the experience accumulated throughout approximately 15 years of cannabis production, the company has learned to neutralize the possible effects of seasonality on the company’s operations. The company optimizes the number of production cycles per year, according to a production plan that considers various parameters such as weather changes, costs, and the availability of suitable professional work force. The company’s crop yields are optimal if cultivated from early spring to late autumn and harvested from late spring to early winter. By cultivating within climatized greenhouses, the company is able to produce pharmaceutical-grade cannabis throughout the entire year over 4 full 13-week cycles.
History
InterCure Ltd. was incorporated in 1994 under the Israeli Companies Law.
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