When it comes to the Latin America cannabis market, we consider Khiron Life Sciences Corp. (TSXV: KHRN) (OTCQX: KHRNF) (Frankfurt: A2JMZC) to be a clear leader. We believe the Latin American cannabis operator is in the early innings of a major growth cycle and is well positioned to capitalize on a burgeoning market.
One of the reasons we are excited about Khiron is related to the structure of the business and the markets it is focused on. The vertically integrated medical cannabis company has core operations in Latin America and Europe, which are two markets we are bullish on over the long-term.
Partnership to Let Khiron Sell Products through 21 Colombian Medical Clinics
Last week, Khiron reported a major milestone and formed a strategic partnership with the Colombia Cancer League, which has 60 years of experience in the country as a leading institution in the provision of oncology services. According to the agreement, the companies will be focused on the launch of the “Cannabis: Medicine for Your Life” campaign throughout Colombia. The campaign will be co-organized by both companies, and we will monitor how it benefits both operators.
We are excited about the growth prospects that are associated with the campaign and the 21 medical clinics located throughout the country which are partnering with Khiron and the Colombia Cancer League. Through the relationship, patients who are suffering from chronic pain, palliative care and oncology issues can access consultations for medical cannabis.
The campaign aims to improve safe access to consultations for medical cannabis and will be conducted in 11 cities across the country. Next month, participating physicians will donate more than 3,000 consultations (both in person and through teleconsultation channels) to patients who suffer from chronic pain, palliative care and oncology issues.
2021 is Proving to be a Record Year for Khiron
So far this year, Khiron has shown excellent execution and we are bullish on how the story has advanced. During the last two quarters, the business has reported impressive growth as it relates to the growth in the number of medical cannabis prescriptions that have been filled.
During this time, Khiron has filled over 19,000 prescriptions. Between the fourth quarter of 2020 and the first quarter of 2021, the company reported have filled 120% more medical cannabis prescriptions and the gross margin that is associated with this aspect of the business is greater than 90%.
We are excited about Khiron’s partnership with some of Colombia’s leading specialized medical institutions. The goal of the relationship is to increase awareness and to provide safe access to patients who are seeking different types of treatments. We are favorable on the recent uptick in business to Colombia offering insurance to medical cannabis patients and this is trend that we expect to serve as a major revenue generator for it.
Going forward, we expect Khiron to be a major beneficiary of an increase in the amount of external health care providers that have finished the company’s medical cannabis education program. Over the next year, we expect physician engagement and willingness to prescribe cannabis to continue to improve due to the company’s differentiated education platform and real-world evidence. This initiative could provide the business with access to more than two million patients that suffer from chronic pain in Colombia.
Executing on a Medical Focused Growth Strategy
2021 is already proving to be a banner year for Khiron and we expect the Latin American cannabis company to report major milestones in the back half of the year. When analyzing Khiron’s strategy to capture market share in Colombia, we believe the company is starting to look like the Trulieve Cannabis Corp. (TRUL.CN) (TCNNF) of Latin America.
In Florida, Trulieve has the most medical cannabis dispensaries and has been capitalizing on the cannabis opportunity in the state. Through strategic relationships, Khiron is focused on creating a similar footprint in Colombia and we believe that the business is the leading way to play the Latin American cannabis market.
Going forward, we expect Khiron to sell a record amount of cannabis and expect the change in how insurance covers the cost of medical cannabis for approved patients to serve as a major catalyst for growth. So far this year, the company has completed more transactions that it did in all of 2020 and we expect this trend to become more significant on a month-over-month basis.
A Leading Latin American Cannabis Operator to be Aware of
At current levels, we believe that Khiron has a favorable risk-reward profile and substantial potential catalysts for growth. We believe the market is underestimating the potential for the company to capitalize on Colombia, the UK, and Germany. As the management team continues to execute in these markets, we expect to see more interest in the opportunity and this an operator that our readers should be aware of.
With an inventory of EU-GMP certified medical cannabis products available to patients in both the UK and Germany, Khiron is well-positioned to execute on some of the most attractive markets in the European Union (EU). The management team is laser focused on increasing patient access in Europe by broadening its product portfolio and leveraging its Latin America assets (i.e. clinical data, IP, brands, and genetics).
If you are interested in learning more about how Khiron is positioned to capitalize on burgeoning international markets, please send an email to email@example.com with the subject “Khiron” to be added to our distribution list.
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This press release may include predictions, estimates or other information that might be considered forward-looking within the meaning of applicable securities laws, including statements related to the Company’s ability to support its continued growth and fund the business’ sales and financial goals for at least the remainder of fiscal 2021 with proceeds remaining from its recent offering. While these forward-looking statements represent the Company’s current judgments, they are subject to risks and uncertainties that could cause actual results to differ materially, including risks and uncertainties associated with market conditions. You are cautioned not to place undue reliance on these forward-looking statements, which reflect the opinions of the Company’s management only as of the date of this release. Please keep in mind that the Company is not obligating itself to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. When used herein, words such as: “potential,” “expect”, “look forward,” “believe,” “dedicated,” “building,” or variations of such words and similar expressions are intended to identify forward-looking statements.