- Starting January 1st, 2022, every insurance provider in Colombia, is now mandated to cover the costs of high and low THC medical cannabis prescriptions
- Significantly improves the current insurance coverage process, simplifying the procedure and reducing approval times for patients to obtain insurance coverage across the country
- Colombia has upwards of 6 million potential patients for medical cannabis products (Source: IMS Quintiles), and more than 97% of the population is covered with health insurance
- In 2021, the Company filled almost 52,000 medical cannabis prescriptions in Colombia, 9 times more than in 2020. Over 60% of the product sales were covered by insurance under the previous coverage rules
Khiron Life Sciences Corp. (“Khiron” or the “Company”) (TSXV: KHRN) (OTCQX: KHRNF)(Frankfurt:A2JMZC), a vertically integrated medical cannabis leader with core operations in Latin America and Europe, announces that the Government of Colombia has added high and low THC medical cannabis to its list of mandated covered medications for every insurance provider in the country. This change will continue to cement Khiron’s leadership position in the Colombian domestic medical cannabis market, leveraged by the Company’s premium brand and its “seed to sale” medical cannabis clinic model.
“In March 2020, Khiron became the 1st licensed producer in Colombia to sell medical cannabis to patients through our wholly-owned clinics. Since then, the Company has continued to experience double-digit monthly growth and has exceeded more than 57,000 prescriptions sold to date, servicing more than 16,000 individual patients in the country and becoming a category leader in the Colombian medical cannabis industry. In December 2020, the Colombian government included medical cannabis as an approved medication for insurance coverage”, commented Alvaro Torres, Khiron CEO, and Director.
“Since then, we have worked with insurance companies across the country to include this medication in their administrative systems. In 2021, 60% of our products were sold through agreements with twomajor insurance providers. Today, all insurance companies are mandated to cover medical cannabis in Colombia, with less paperwork and hassle for patients. Even though the previous rules were more complicated, the insurance coverage made a dramatic difference in our results:
|Conversion Rate||# of prescribed patients /# of total consults||8%||32%|
|Retention Rate||# of returning patients /# of new + returning patients||33%||60%|
|Average monthly |
|CAD spent per month per patient |
on medical cannabis
|CAD 55||CAD 75|
|Total prescriptions |
sold in Colombia
|# medical cannabis prescriptions |
|~ 5,600||~ 52,000|
With the inclusion of medical cannabis in the mandatory health coverage plan (“POS”), we expect these trends to continue to grow further. Starting January 1st 2022, any patient in Colombia will be able to get their medical cannabis medication almost free of charge, regardless of the insurance company they are subscribed to. This unprecedented regulatory framework update will create one of the largest insured markets for medical cannabis in the world and help position Khiron as a leading company in this industry worldwide”, added Mr. Torres.