Colombians who are in need of medical cannabis will get their pot covered by the country’s public health system.
Last week, the Colombian Minister of Health reaffirmed the inclusion of medical cannabis in the list of mandatory insurance-covered medications as of January this year. On Dec. 30, Resolution 2808 was signed by the Minister of Health which integrates the plant along with other government-funded medications.
The government also revalidated medical conditions where medical practitioners have found 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.
On Thursday, Khiron Life Sciences Corp. (TSXV: KHRN) (OTCQX: KHRNF) (Frankfurt: A2JMZC), also announced that it signed a first-of-a-kind contract with one of the country’s largest insurance companies with more than 1.2 million insured individuals.
During the first half of 2022, insurance-covered prescriptions represented more than 90 per cent of the company´s cannabis sales in Colombia. With a patient base of more than 25,000 patients, Khiron will immediately resume filling insurance-covered prescriptions through its Zerenia clinic network.
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.
“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,” Khiron CEO Alvaro Torres.
“With this decision, Khiron will immediately tackle the backlog of covered medical cannabis products for our patients,” Torres added.
“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.”
Khiron says the two achievements will allow it to revert to predictable recurring revenues, shorter collection periods and improved cash flow.
The company sells medical cannabis in Colombia, Germany, the United Kingdom, Switzerland, Peru and Brazil.
Khiron’s stock went up by 41.67 per cent on Thursday to $0.025 on the Canadian Ventures Exchange.