Colombian medical cannabis patients catch a break

Published Jan 27, 2023 10:00 a.m. ET
Unsplash / Stephen Cobb

Colombian residents who need cannabis for medicinal purposes will no longer have to pay out of pocket for the luxury of a better quality of life, now that medical pot will be covered by the public healthcare system.

Resolution 2808

Columbia’s Minister of Health included medical cannabis in the official list of medications that get mandatory insurance coverage, a historical change that begins in January of this year. On December 30th the Minister signed Resolution 2808 which adds cannabis to the list of the country’s government-funded medications.

At the same time, the Colombian government took another look at the medical conditions that have the approval to be treated with cannabis, a list evaluated by the Technical Institute of Health Sector (IETS), and it includes some very common diagnoses such as chronic and neuropathic pain, sleep disorders, oncology pain, fibromyalgia, and epilepsy.

This change is excellent news for many people in Columbia, as it will force all medical insurance providers to cover the cost of medical cannabis.

New Guidelines for cannabis commercialization

The news about medical cannabis coverage came on the heels of an announcement by Khiron Life Sciences Corp. (TSXV: KHRN) (OTCQX: KHRNF) (Frankfurt: A2JMZC), a company that just signed the country's first-ever contact with one of the biggest providers of insurance in the region, with more than 1.2 million customers.

In the first half of last year,more than 90% of the company’s cannabis sales were for medical cannabis, supporting more than 2500 patients. Residents in need of cannabis prescription coverage may apply through the Zerenia clinic network which is directly affiliated with Khiron Life Sciences Corp.


Making history

It is the first Latin American insurance company to contract medical cannabis devices and products, providing a once-in-a-lifetime opportunity for both companies to evolve and grow a client base in Columbia. Both Khiron Life Sciences Corp. and Zerenia are trusted names, made famous for their cannabis experts using proprietary scientific knowledge to assist patients.

This is the first time an insurance company in Latin America is contracting medical cannabis-specific services and products. This represents an opportunity for Khiron and Zerenia to expand its client and patient base within Colombia while continuing to differentiate itself with its unparalleled expertise in medical cannabis and proprietary scientific evidence.

CEO of Khiron, Alvaro Torres has promised to get to work immediately by clearing its backlog of applications for coverage of cannabis products.

These two historical motions will help Khiron Life Sciences Corp to settle in with a more predictable revenue stream and improve cash flow, which should help it to expand to accommodate the needs of medical patients from all parts of Columbia. As of now, the company operates successfully in Columbia, Switzerland, Germany, Peru, the United Kingdom, and Brazil.

In light of the latest announcements, Khiron’s stock on the Canadian Ventures Exchange went up on Thursday by an impressive 41.67 percent to $0.025, a total that is only expected to grow as the company begins reporting steady increases in revenue.

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