Khiron Life Sciences Corp. (TSXV: KHRN) (OTCQX: KHRNF) (Frankfurt: A2JMZC) has signed a deal with Bogota’s largest public health insurance to provide coverage for medical cannabis to patients in Colombia.
The Toronto-headquartered company with primary operations in Colombia announced the deal days after the country announced mandatory coverage for medical cannabis.
In late December, the company signed a contract with Capital Salud EPS, Colombia’s largest public insurance company. Under the deal, Zerenia –Khiron’s medical cannabis clinics– will provide medical cannabis services and products that Capital Salud can reimburse.
Only patients diagnosed with chronic pain, mental health, neurological conditions and epilepsy will be able to get coverage. Khiron has already started treating patients insured by Capital Salud.
Capital Salud is owned by the City of Bogota which insures 1.2 million Colombians with an annual budget of $500 million.
“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,” said Bogota’s city council Juan Baena.
Last year, Bogota’s city council and the mayor’s office launched an initiative with the intention of establishing the city as a research, production and commercialization hub for medical cannabis in Colombia and Latin America. As part of the initiative, Capital Salud signed a contract with Zerenia to provide integrative health services and pharmacotherapeutic treatment using medical cannabis.
This past December, 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.
“Over the past two 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,” Khiron CEO Alvaro Torres said.
“We are thankful for the confidence placed by Capital Salud in Zerenia, and with an installed capacity of over 300,000 annual consultations, we are more than prepared to service their patient base,” said Torres.
“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.”
Khiron stock went up by 22.22 per cent on Monday to $0.11 on the Canadian Venture Exchange.