Khiron Life Sciences Corp. (“Khiron” or the “Company”) (TSXV: KHRN), (OTCQX: KHRNF), (Frankfurt: A2JMZC), a vertically integrated cannabis leader with core operations in Latin America and Europe, announces that as a result of strong clinical evidence, the Company’s National Strategic Project status, and a directive from the Government of Colombia, its medical cannabis products and clinic services are now covered by the country’s major health insurance providers, including medical cannabis as a first line therapy. In Colombia more than 94% of the population have health insurance.
“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 a validation of our clinic model and 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, Khiron CEO and Director.
“Since becoming the first company to fill cannabis prescriptions in Colombia, 92% of our patients have reported an improvement in their primary conditions after four months of treatment with Khiron products. We look forward to improving the quality of life of even more patients who are now able to access medical cannabis through insurance coverage,” added Mr. Torres.
With today’s news, Colombia joins an exclusive list of countries offering health insurance coverage for medical cannabis, including Germany and the Czech Republic. In the first half of 2020, over €75 million worth of medical cannabis products were sold in Germany to an estimated patient population of approximately 120,000 (Source: Prohibition Partners). Revisions to German laws in 2017 had wide ranging implications for the country’s cannabis market requiring health insurers to cover the costs of the prescription except in exceptional circumstances, with over 60% of patients receiving reimbursement from their health insurance provider. In the Czech Republic, which recently included extended health insurance for medical cannabis, sales in the first four months of 2020 increased threefold over the same period in 2019.
Under the Colombian program, Khiron clinics receive government and insurance company authorization to fill patient prescriptions for magistral preparations; subsequently, the Company is reimbursed once products have been dispensed to the patients. This will allow a greater number of Colombian patients to have access to Khiron’s medical cannabis products and clinical services. Khiron’s clinic strategy continues to provide cost-effective access to patients, while allowing the Company to generate medical evidence and deliver an unparalleled physician and patient experience. With a large patient base and growing network of physicians trained in the prescription of medical cannabis, Khiron is uniquely positioned to take advantage of the insurance policy change.