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Colombia Will Cover Cannabis Medical Products Within Their Health Insurance Systems

December 8, 2020 8:53 am
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Colombia Will Cover Cannabis Medical Products Within Their Health Insurance Systems

Khiron Life Sciences Corp. will be speaking at the Benzinga Global Small Cap Conference set to take place on December 8-9, 2020. 

Legal cannabis is gaining momentum in Latin America for its wide range of applications within the medical sector. Colombia just became one of a growing group of countries in which the healthcare system covers cannabis products. 

Khiron Life Sciences Corp (OTCQX:KHRNF), a vertically integrated Colombian cannabis company with operations in Latin America, Europe, and North America, is a part of the companies that currently are filling medical cannabis prescriptions within Colombia ,Peru and The UK. The company was recently certified as a National Strategic Project by the Colombian Government (PINES status), and its products will be covered through the Colombian platform MIPRES. 

Colombian Medical Platform MIPRES, is a technological tool that allows healthcare professionals to prescribe medical products not financed with resources from the government or complimentary services. This milestone will open the doors to other cannabis products to reinforce this emerging market’s potential. 

“We see the inclusion of our products and services under health insurance policies as a significant driver of revenue opportunities for Khiron in Colombia and the validation of the potential for market growth in the country. Importantly, this will allow more Colombians access to benefit from our medical cannabis products and clinic resources,” commented Alvaro Torres, CEO, and Director of Khiron. 

Khiron Health Centers & Medical Patients 

In 2018, Khiron acquired the Latin American Institute of Neurology and the Nervous System (“ILANS”) ‒ one of the largest health service network providers in Colombia and Latin America. 

The company recently launched the Zerenia clinic in Bogota in Q1 2020, followed by its telemedicine operations in Q2 2020. And this month, they will be opening its first Zerenia clinic in Medellin, Colombia. 

Their clinics provide face-to-face and telemedicine consults, which connect patients with medical specialists in cannabis-based medication and the comprehensive treatment of pathologies such as chronic pain, anxiety, insomnia, depression, headache, epilepsy, and Parkinson's disease. 

Although the company’s clinics were affected by the current COVID-19 pandemic, the company has recorded a 130% growth in prescriptions and conducted roughly 15% of patient consultations virtually. 

Khiron PINES Status ‒ A National Interest Strategic Project 

The Colombian government established the National Interest Strategic Project certification (“PINES”) to prioritize specific projects or companies that may significantly increase the national economy. 

Khiron was recently declared a PINES as a Colombian Pharmaceutical Producer of Global Cannabis, which may help reduce government red tape and potentially accelerate medical, international, and CPG revenues. Its PINES status puts the company on the same level as major infrastructure projects like the Bogota Subway, major highway expansions, and large oil/mining projects. In addition, cannabis is one of the first non-infrastructure economic areas to be added to PINES. 

The government recognizes PINES programs as potential ways to boost the country’s economy, such as export capacity, impact job creation, generate positive investment returns, offer operational sustainability, and contribute to government planning goals. Recognizing the medical cannabis sector into the PINES program demonstrates its commitment to new industries. 

Khiron Third Quarter 2020 Results 

Throughout the company’s latest quarter, prescriptions filled increased over 450% in Q3 2020 over Q2 2020, and revenue contributions increased 514% from Q2 2020 as prescriptions and sales accelerated on a weekly basis. The company signed partnerships with 15 clinics and health centers in Colombia, and an agreement to distribute the Company's Kuida™ CBD skincare brand through pharmacy, beauty retail, and online markets serving the Hong Kong territory, with first orders expected in Q4 2020. 

To learn more about Khiron, click here.

Image courtesy of Khiron