Mandatory Insurance Coverage for Medical Cannabis Now Expands to More than 50 million Colombians

Rhea-AI Summary

Khiron Life Sciences Corp. announces that as of January 1, 2022, all insurance providers in Colombia must cover high and low THC medical cannabis prescriptions. This change simplifies the insurance approval process for patients and taps into a potential market of over 6 million patients, with more than 97% already insured. In 2021, Khiron filled nearly 52,000 medical cannabis prescriptions, nine times more than in 2020. The company's sales growth is supported by mandatory coverage, enhancing its position in the Colombian medical cannabis market.

Positive

• Mandatory insurance coverage for medical cannabis in Colombia expected to significantly increase patient access and prescriptions.
• Khiron filled almost 52,000 prescriptions in 2021, marking a ninefold increase from the previous year, indicating strong market demand.
• The company has established itself as a leader in the Colombian medical cannabis sector, with a projected growth trajectory following regulatory changes.

Negative

• None.

• Starting January 1st, 2022, every insurance provider in Colombia, is now mandated to cover the costs of high and low THC medical cannabis prescriptions
• Significantly improves the current insurance coverage process, simplifying the procedure and reducing approval times for patients to obtain insurance coverage across the country
• Colombia has upwards of 6 million potential patients for medical cannabis products (Source: IMS Quintiles), and more than 97% of the population is covered with health insurance
• In 2021, the Company filled almost 52,000 medical cannabis prescriptions in Colombia, 9 times more than in 2020. Over 60% of the product sales were covered by insurance under the previous coverage rules

TORONTO, Jan. 4, 2022 /PRNewswire/ - Khiron Life Sciences Corp. ("Khiron" or the "Company") (TSXV: KHRN) (OTCQX: KHRNF)(Frankfurt:A2JMZC), a vertically integrated medical cannabis leader with core operations in Latin America and Europe, announces that the Government of Colombia has added high and low THC medical cannabis to its list of mandated covered medications for every insurance provider in the country. This change will continue to cement Khiron's leadership position in the Colombian domestic medical cannabis market, leveraged by the Company's premium brand and its "seed to sale" medical cannabis clinic model.

"In March 2020, Khiron became the 1st licensed producer in Colombia to sell medical cannabis to patients through our wholly-owned clinics. Since then, the Company has continued to experience double-digit monthly growth and has exceeded more than 57,000 prescriptions sold to date, servicing more than 16,000 individual patients in the country and becoming a category leader in the Colombian medical cannabis industry. In December 2020, the Colombian government included medical cannabis as an approved medication for insurance coverage", commented Alvaro Torres, Khiron CEO, and Director.

"Since then, we have worked with insurance companies across the country to include this medication in their administrative systems. In 2021, 60% of our products were sold through agreements with two major insurance providers. Today, all insurance companies are mandated to cover medical cannabis in Colombia, with less paperwork and hassle for patients. Even though the previous rules were more complicated, the insurance coverage made a dramatic difference in our results:

KPI		2020	2021
Conversion Rate	# of prescribed patients / # of total consults	8%	32%
Retention Rate	# of returning patients / # of new + returning patients	33%	60%
Average monthly transaction value	CAD spent per month per patient on medical cannabis	CAD 55	CAD 75
Total prescriptions sold in Colombia	# medical cannabis prescriptions sold	~ 5,600	~ 52,000

With the inclusion of medical cannabis in the mandatory health coverage plan ("POS"), we expect these trends to continue to grow further. Starting January 1^st 2022, any patient in Colombia will be able to get their medical cannabis medication almost free of charge, regardless of the insurance company they are subscribed to. This unprecedented regulatory framework update will create one of the largest insured markets for medical cannabis in the world and help position Khiron as a leading company in this industry worldwide", added Mr. Torres.

About Khiron Life Sciences Corp.
Khiron is a leading vertically integrated international 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 agricultural infrastructure to drive prescriptions and brand loyalty with patients worldwide. The Company has a sales presence in Colombia, Peru, Germany, UK, and Brazil and is positioned to commence sales in Mexico. The Company is led by Co-founder and Chief Executive Officer, Alvaro Torres, together with an experienced and diverse executive team and Board of Directors.

Visit Khiron online at investors.khiron.ca    
Linkedin: https://www.linkedin.com/company/khiron-life-sciences-corp

Forward-Looking Statements

This press release may contain certain "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation. All information contained herein that is not historical in nature may constitute forward-looking information. Khiron undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of Khiron, its securities, or financial or operating results (as applicable). Although Khiron believes that the expectations reflected in forward-looking statements in this press release are reasonable, such forward-looking statement has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond Khiron's control, including the risk factors discussed in Khiron's Annual Information Form which is available on Khiron's SEDAR profile at www.sedar.com. The forward-looking information contained in this press release is expressly qualified by this cautionary statement and is made as of the date hereof. Khiron disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

Investor Contact: 
Paola Ricardo
E: investors@khiron.ca
T: +1 (647) 556-5750

Media Contact:
Peter Leis
Europe Communications
E: pleis@khiron.ca

Carolina Gomez
Latam Communications
E: mgomez@khiron.ca

Khiron Europe:
Franziska Katterbach, President
E: fkatterbach@khiron.ca

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SOURCE Khiron Life Sciences Corp.

FAQ

What recent changes affect Khiron Life Sciences Corp. stock KHRNF?

As of January 1, 2022, all insurance providers in Colombia are mandated to cover high and low THC medical cannabis prescriptions, positively impacting Khiron's market position.

How many medical cannabis prescriptions did Khiron fill in 2021?

Khiron filled nearly 52,000 medical cannabis prescriptions in Colombia in 2021, a significant increase from the previous year.

What is the potential patient market for medical cannabis in Colombia?

Colombia has over 6 million potential patients for medical cannabis products, with more than 97% of the population covered by health insurance.

How has Khiron's conversion and retention rates changed in 2021?

Khiron's conversion rate increased from 8% in 2020 to 32% in 2021, while the retention rate rose from 33% to 60% in the same period.