According to New Frontier Data, 12.8 million Colombians have conditions that could benefit from medical cannabis. Chronic pain is the leading medical condition, consistent with findings from Khiron Life Sciences’ clinics. Other frequently observed conditions reported include anxiety, depression and sleep disorders.
Khiron Life Sciences (OTCMKTS: KHRNF) has become well established in the Colombia market and recently reported record revenue of $2.8 million in the 1st quarter 2021, a 49% increase from the prior year and 13% increase from the 4th quarter 2020. Sequential quarter-over-quarter growth was driven by normalized clinic operations and a 141% increase in medical cannabis sales, which have become a significant growth driver, contributing 20% of revenues and more than 45% of gross profits in the 1st quarter.
With such growth and success, the company plans to expand its network of clinics in Latin America and beyond.
Doubling Sales and Further Developments
At $1.1 million, or 38% of revenues, the company achieved record gross profits in the 1st quarter, driven by 90% gross margins in its medical cannabis segment. In April, Khiron announced it had filled more than 11,000 prescriptions year to date, doubling the volume of prescriptions filled throughout the entirety of 2020.
Insurance-covered prescriptions in the 1st quarter nearly tripled from the 4th quarter of 2020 to 60% of sales, while out-of-pocket prescriptions grew 50% quarter over quarter.
“We’re just starting to scratch the surface of what can be accomplished in Colombia,” CEO Alvaro Torres said. “The more positive we feel about our business model in Colombia, the more positive we feel that this can be translated to new markets.”
Khiron has reported 90% of patients experiencing improvements after 4 months of using its product, with a 50% retention rate and 60% annualized cost reduction in medication for insurance companies.
“When you’re talking about a 50% retention rate, you’re talking about sustainability,” Torres said during a company presentation May 28.
Following the initial success of its Medellin satellite clinic, the company opened 5 additional satellite clinics in Colombia in 2021, for a total of 9 clinics, including 3 health centres in Bogota and 6 satellite clinics across the country.
The company intends to open its 1st international Zerenia™ clinic in Peru by the end of the 2nd quarter with 91 doctors covering 19 specialties. The launch of Khiron’s 1st international Zerenia™ clinic in Lima, Peru, through a joint venture with Clinica Montesur, would establish Zerenia™ as Latin America’s first multicountry medical cannabis clinic.
The company also plans to launch Zerenia™ in Mexico and Brazil later this year.
Education and European Markets
Khiron is working to increase patient access (and sales) in Europe by broadening its product portfolio and leveraging its Latin America assets — including clinical data, intellectual property (IP), brands and genetics. In March of this year, Khiron began sales in Germany, its 2nd country where medical cannabis qualifies for insurance coverage.
In April, Khiron announced an education partnership with Cellen Therapeutics, a leader in digital healthcare in the United Kingdom. The company believes this partnership expands patient access through medical education and helps it to broaden its knowledge in the pain market.
Additionally, in April, Khiron Academy’s education program received CPD certification, which allows healthcare providers to continue receiving education credits through Khiron Academy. Over the last year, this program has helped Khiron become a leading medical cannabis educator in Colombia, and the company remains confident the platform can be successfully leveraged in new markets.
The company recently announced the largest shipment to date of an EU-GMP-certified medical cannabis product for sale and distribution in Germany. According to the announcement, Khiron 20/1, a THC-dominant cannabis flower, becomes the 2nd Khiron-branded product to launch in Germany, having been prescribed in the U.K. since July 2020. The 36.6 kilogram shipment is expected to have a positive impact on 2nd-quarter medical cannabis sales in Europe.
Khiron’s mission is to improve the life quality of patients and consumers through the applied use of cannabis. Its goal is to reach 1 million patients and consumers by 2024. Visit https://investors.khiron.ca for more information.
Khiron Life Sciences is a partner of Benzinga. The information in this article does not represent the investment advice of Benzinga or its writers.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.