Khiron Life Sciences Corp., a vertically integrated cannabis leader with core operations in Latin America, announced the Company has received certification of Good Elaboration Practices for Magistral Preparations with Cannabis (GEP). As a result, the Company is now fully authorized to manufacture high- and low-THC magistral preparations in Colombia. The Company anticipates fulfilling its first prescriptions of full-spectrum, high CBD formulations within days. The Company anticipates that it will also be fully authorized to fulfill prescriptions and dispense psychoactive (high-THC) medical cannabis within the coming weeks, once the pharmacies are authorized by the Narcotics National Fund (FNE).
“Today is a hugely important milestone for Khiron. With this GEP certification we begin a new phase in commercializing our medical cannabis product pipeline and towards meeting our market potential. We have been preparing for this day for three years. We have the capacity, established patient network, and now full authorization to manufacture high- and low-THC magistral preparations, and to fulfill prescriptions for non-psychoactive medicinal cannabis within days,” said Alvaro Torres, Khiron CEO and director. “From day one our mission has always been to model our business on serving patient needs, and now we are delivering on that focus, targeting the millions of patients in Colombia who have the potential to benefit from medical cannabis.”
Khiron has an established patient network in Colombia through its ILANS medical facilities that treat over 120,000 patients with neurological, psychiatric, respiratory, urological and orthopedic diseases, among others. ILANS patients are serviced by the Colombian health insurance system. The Company also recently opened Zerenia, a 15,000 sq. ft facility in Bogota that increases the Company’s patient capacity by 75%, offering a comprehensive suite of health and medical services in alignment with insurance company partners.
Under Colombian regulations, GEP certification is a manufacturing and processing certification that is a mandatory requirement for commercializing customized medical cannabis prescriptions, known as Magistral Preparations. Commercializing customized medical cannabis prescriptions in Colombia involves a lengthy and rigorous regulatory process that has seen the Company receive licenses to cultivate high-THC and low-THC cannabis for domestic and export sales, quotas to cultivate 9.3 tons of THC cannabis, and to extract THC cannabis in Colombia. To-date, Khiron is the only company in Colombia to meet all of these strict regulatory requirements, and, with the GEP certification received today, becomes the first Company authorized to sell medical cannabis in Colombia.
The Company will host a webcast on Friday, March 20th at 11:00 AM (ET) to discuss the GEP certification development, first sales, and to take investor questions. Please register at https://event.on24.com/wcc/r/2222096/A0AE8A305CA7960FF312F68069931C50
As the world deals with the spread of Covid-19, Khiron provides the following corporate update on further commercial and operational activities. As global market conditions have changed dramatically the Company is implementing the following measures to ensure liquidity and increase focus of company resources.
- Uruguay: The Company has decided to suspend construction of cultivation assets in Uruguay for the time being.
- Wellness/CPG: The Company is significantly reducing sales and marketing spending for Kuida in the European and US markets. The Company intends to continue its current marketing efforts in Colombia.
- Dixie JV: In light of the announcement on March 9, 2020 by Dixie Brands Inc. (“Dixie”) to merge with BR Brands, LLC, the Company and Dixie have mutually agreed to terminate the joint venture that was announced on January 30, 2019.
“We are now in the sales execution phase of our business plan and as such it is key that we remain focused on those areas of our business that have the greatest revenue potential and are scalable across our addressable markets. We have taken decisive action to protect our balance sheet and focus on our core medical businesses, in the most promising markets,” said Mr. Torres.
“With worldwide efforts underway to manage the spread of Covid-19, I wanted to personally add that Khiron is in discussions with regulators in Colombia with the aim of ensuring that the Company is doing everything it can to assist authorities and communities with Covid-19 suppression efforts. We will provide updates on any specific initiatives, as appropriate.”
Khiron Life Sciences Corp. is the dominant integrated medical cannabis company in Latin America. Khiron has core operations in Latin America, along with activity in North America and Europe, and is licensed in Colombia for the cultivation, production, domestic distribution, and international export of both tetrahydrocannabinol (THC) and cannabidiol (CBD) medical cannabis. The Company delivers best in class regulatory compliance, has the first approved line of CBD cosmetic products on shelf in Colombia, and is fully authorized to manufacture high- and low-THC medical cannabis, and to fill prescriptions for low-THC medical cannabis in the country.