Government of Colombia Declares Mandatory Insurance Coverage for Medical Cannabis Products
On January 1, 2023, the Colombian government mandated insurance coverage for plant-based medical cannabis products, including those from Khiron. This decision follows a confirmation by the Ministry of Health on December 30, 2022. As a result, every insurance provider in Colombia must cover medical cannabis prescriptions, allowing Khiron to address backlogged orders. Moreover, Khiron secured a contract with a major Bogota insurance company, enhancing their service offering to over 1.2 million individuals. This commitment positions Khiron for predictable revenues from a patient base exceeding 25,000.
- Mandatory insurance coverage for Khiron's medical cannabis products improves revenue predictability.
- New contract with a large insurance company in Bogota opens access to over 1.2 million individuals.
- Khiron addresses backlogged orders, leveraging its existing patient base of over 25,000.
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- On December 30, 2022, the Ministry of Health of Colombia reaffirmed the inclusion of plant-based medical cannabis products, i.e., Khiron products, in the mandatory insurance coverage system
- Starting January 1st, 2023, every insurance provider in Colombia, is mandated to cover the costs of medical cannabis prescriptions for patients
- Khiron will immediately start filling backlogged orders of insurance-covered prescriptions in Colombia
- New Contract Awarded: Additionally, in December 2022, Zerenia™ Colombia entered into a contract with the largest Government-owned insurance company in the city of Bogota with over one million people under coverage, to provide healthcare services with medical cannabis for its patient population
TORONTO, Jan. 5, 2023 /PRNewswire/ - Khiron Life Sciences Corp. ("Khiron" or the "Company") (TSXV: KHRN) (OTCQX: KHRNF) (Frankfurt: A2JMZC), announces that the new Colombian Government has included plant-based medical cannabis products (i.e., Khiron products) in the list of mandatory insurance-covered medications starting January 1st, 2023, as well as the signing of a first-of-its-kind medical cannabis contract with one of Colombia´s largest insurance companies based in the city of Bogota.
Resolution 2808 of 2022 was signed by the Ministry of Health on December 30, 2022. This revision was necessary to remove unintended ambiguities that had arisen whether plant-based magistral preparations from medical cannabis (i.e., Khiron products) were also included in the insurance coverage. This is now once and for all clearly confirmed. The new government is fully committed with the use of medical cannabis as a covered treatment under the Colombian health system.
The Government used this iteration to also validate medical conditions where they find moderate to strong evidence that cannabis is an effective treatment. These medical conditions evaluated by the IETS (Technical Institute of the health Sector) include chronic and neuropathic pain, oncology pain, sleep disorders, epilepsy, and fibromyalgia, which represent the primary conditions treated with Khiron products.
During the first half of 2022, insurance-covered prescriptions represented more than
In addition, Zerenia™ Colombia (Khiron´s wholly owned medical cannabis clinic network), has entered into a contract to provide "Integrative Health Services and Pharmacotherapeutic Treatment with Medical Cannabis" with the largest Government-owned insurance company in the city of Bogota, with more than 1.2 million insured individuals. 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.
Alvaro Torres, CEO of Khiron, comments: "Today is a great day for patients in Colombia and Khiron. We welcome the decision from the new Colombian government to categorically mandate insurance coverage for our medical cannabis products. With this decision, Khiron will immediately tackle the backlog of covered medical cannabis products to our patients. In parallel, we have also secured a first-of-its-kind contractual relationship with one of Colombia´s largest government-owned insurance companies for medical cannabis specific healthcare services and dispensation. These two achievements, will allow us to revert to predictable recurring revenues, shorter collection periods and improved cashflow."
About Khiron Life Sciences Corp.
Khiron is a leading global medical cannabis company with core operations in Latin America and Europe. Leveraging wholly owned medical health clinics and proprietary telemedicine platforms, Khiron combines a patient-oriented approach, physician education programs, scientific expertise, product innovation, and focus on creating access to drive prescriptions and brand loyalty with patients worldwide. The Company has a sales presence in Colombia, Germany, the United Kingdom, Switzerland, Peru, and Brazil. The Company is led by its co-founder and Chief Executive Officer, Alvaro Torres, together with an experienced and diverse executive team and board of directors.
Visit Khiron online at https://investors.khiron.ca.
Linkedin https://www.linkedin.com/company/khiron-life-sciences-corp/
Cautionary Statement Regarding Forward-Looking Information
This press release may contain "forward-looking information" within the meaning of applicable securities legislation. All information contained herein that is not historical in nature constitutes forward-looking information. Forward-looking information contained in this news release may include statements pertaining to the expected synergies and benefits to the Company from the acquisition of the Target as well as statements as to business strategy. Forward-looking information and statements contained in this news release reflect management's current beliefs and is based on information currently available and on assumptions that management believes to be reasonable. These assumptions include, but are not limited to, the expected benefits to be realized by Khiron's business as a result of the acquisition of the Target, and assumptions regarding market opportunities in the jurisdictions in which the Company operates and where it seeks to operate.
Although management believes that its expectations and assumptions to be reasonable, forward-looking information is always subject to known and unknown risks, uncertainties, and other factors, many of which are beyond the control of management, that may cause actual results to differ materially from those expressed or implied in such forward-looking information. Such risks and uncertainties include but are not limited to the following: general economic conditions, adverse conditions in capital markets, political uncertainties, counterparty risk, failing to obtain required regulatory requirements and approvals, failure to maintain required permits and licences, business integration risks, as well as those other risk factors discussed in Khiron's most recent annual information form which is available on Khiron's SEDAR profile at www.sedar.com.
As a result of the foregoing and other risks and uncertainties, readers are cautioned not to place undue reliance on forward-looking information contained in this press release. Readers are further cautioned that the foregoing risks and uncertainties is not exhaustive, and there may be other risks and uncertainties, presently unknown to management of the Company, that may cause actual results to differ materially from those expressed or implied in forward-looking statements contained in this press release. The forward-looking information contained in this press release is expressly qualified by this cautionary statement. Khiron disclaims any intention to update or revise any forward-looking information disclosed herein, whether as a result of new information, future events or otherwise, except as required by law.
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SOURCE Khiron Life Sciences Corp.
