Khiron wins first medical cannabis contract with Colombia's largest public insurance company

Rhea-AI Summary

Khiron Life Sciences Corp. (KHRNF) has announced a significant contract for its wholly owned medical cannabis clinic network, Zerenia. On December 27, 2022, Zerenia signed an agreement with CAPITAL SALUD EPS, Colombia's largest public insurance company, to provide medical cannabis services fully reimbursed for over 1.2 million insured individuals. This initial treatment phase has already commenced, with Zerenia poised to cater to a substantial patient base suffering from chronic conditions. The initiative aligns with Bogota's goal of establishing itself as a medical cannabis hub in Latin America.

Positive

• Khiron has secured a contract with CAPITAL SALUD EPS, enhancing its position in the Colombian medical cannabis market.
• The agreement allows Zerenia to provide medical cannabis services to over 1.2 million insured patients.
• Zerenia has commenced treatment for the first cohort of patients under this contract.
• The partnership supports Bogota's initiative to become a leading medical cannabis hub.

Negative

• None.

• On December 27, 2022, Zerenia (Khiron´s wholly owned medical cannabis clinic network) signed a contract with CAPITAL SALUD EPS, Colombia´s largest public insurance company, under which Zerenia will provide medical cannabis services and products to its patient population, directly reimbursed by CAPITAL SALUD EPS.
• CAPITAL SALUD EPS is owned by the City of Bogota and insures more than 1.2 million people in and around the city, including more than 280,000 active patients with chronic conditions including pain, epilepsy, and mental health.
• Zerenia has already begun treating the first cohort of CAPITAL SALUD´s patients with medical cannabis.

TORONTO, Jan. 9, 2023 /PRNewswire/ - Khiron Life Sciences Corp. ("Khiron" or the "Company") (TSXV: KHRN) (OTCQX: KHRNF) (Frankfurt: A2JMZC), continues to pioneer the medical cannabis market in LATAM by announcing that Zerenia has signed a contract with insurance CAPITAL SALUD EPS, to provide medical cannabis services and products to CAPITAL SALUD EPS patient population and has already begun treating the first cohort of patients. Under the contract, CAPITAL SALUD EPS patients will get access to Khiron's products and clinical services fully reimbursed by CAPITAL SALUD EPS.

In 2022, the Bogota City Council and the Bogota Mayor's office launched a first of its kind initiative with the purpose of establishing the city as a research, production, and commercialization hub for medical cannabis for Colombia and Latin America. As part of this initiative, CAPITAL SALUD EPS - which is wholly owned by the City of Bogota - has signed a contract with Zerenia to provide "Integrative Health Services and Pharmacotherapeutic Treatment with Medical Cannabis" to its patient population.

City councilman Juan Baena, who spearheaded the initiative comments: "This agreement by CAPITAL SALUD EPS seeks the materialization of Agreement 831 that we promoted at the Bogota City Council, with the objective of making Bogota the medical cannabis hub of the country"

Under the contract with CAPITAL SALUD EPS, Zerenia will provide integrative health services and medical cannabis products to patients diagnosed with chronic pain, mental health, neurological conditions, and epilepsy, amongst others. With an annual budget of more than CAD 500 million, 1.2 million insured individuals, and more than 280,000 patients diagnosed with chronic conditions, CAPITAL SALUD EPS is the largest public insurance company in Colombia.

Alvaro Torres, CEO of Khiron, comments: "The city of Bogota has embraced medical cannabis as a catalyst for social and economic growth. We are honored that Zerenia was selected by CAPITAL SALUD EPS to provide medical cannabis services and products to their patients. Over the past 2 years, Zerenia has invested in expanding its clinic locations across the city, generating proprietary scientific evidence on the benefits of medical cannabis, and delivering superior patient service quality to become the leaders in medical cannabis in Colombia, Latin America and Europe. We are thankful for the confidence placed by CAPITAL SALUD on Zerenia, and with an installed capacity of over 300,000 annual consultations, we are more than prepared to service their patient base. We are convinced that we have created a unique medical cannabis platform that other insurance companies in Colombia and abroad will want to offer to their patients to improve their quality of life."

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.

NEITHER THE TSX VENTURE EXCHANGE, NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE), ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.

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SOURCE Khiron Life Sciences Corp.

FAQ

What is the contract between Khiron and CAPITAL SALUD EPS about?

Khiron has signed a contract to provide medical cannabis services reimbursed by CAPITAL SALUD EPS to its patient population.

How many patients can Khiron serve under the new contract?

Khiron can serve over 1.2 million insured individuals through the agreement.

When did Khiron announce the signing of the contract with CAPITAL SALUD EPS?

Khiron announced the signing of the contract on January 9, 2023.

What services does Zerenia provide under this contract?

Zerenia provides integrative health services and medical cannabis products to patients with chronic conditions.

What is the significance of this contract for Khiron and its stakeholders?

This contract solidifies Khiron's role as a leader in the medical cannabis market in Colombia, potentially increasing revenue and market share.