- At December 30, 2022the Ministry of Health of Colombia reaffirmed the inclusion of herbal medical cannabis products, i.e. Khiron products, in the compulsory insurance coverage system
- Departure January 1, 2023each insurer Colombiais mandated to cover the costs of medical cannabis prescriptions for patients
- Khiron will immediately begin filling backorders of insurance-covered prescriptions within Colombia
- New contract awarded: In addition, in December 2022Zerenia™ Colombia has entered into a contract with the largest public insurance company in the city of Bogotá with over one million people under cover, to provide health services with medical cannabis to its patient population
TORONTO, January 5, 2023 /PRNewswire/ – Khiron Life Sciences Corp. (“Khiron” or the “Company”) (TSXV: KHRN) (OTCQX: KHRNF) (Frankfurt: A2JMZC), announces that the new Colombian government has included herbal medical cannabis products (i.e. Khiron products) in the list of mandatory drugs covered by insurance from January 1stst2023, as well as signing a one-of-a-kind medical cannabis contract with one of Colombia’s largest insurance companies based in the city of Bogotá.
Resolution 2808 of 2022 was signed by the Ministry of Health on December 30, 2022. This revision was necessary to remove unintended ambiguities that had arisen as to whether compound herbal preparations of medical cannabis (i.e. Khiron products) were also included in the insurance coverage. It is now once and for all clearly confirmed. The new government is fully committed to the use of medical cannabis as a treatment covered by the Colombian health system.
The government has used this iteration to also validate medical conditions where it finds moderate to strong evidence that cannabis is an effective treatment. These medical conditions evaluated by IETS (Technical Institute of the Health Sector) include chronic and neuropathic pain, oncological pain, sleep disorders, epilepsy and fibromyalgia, which represent the main conditions treated with Khiron products. .
In the first half of 2022, insurance-covered prescriptions represented more than 90% of the Company’s cannabis sales in Colombia. With a clientele of more than 25,000 patients, Khiron will immediately resume processing insurance-covered prescriptions through its network of Zerenia Clinics.
In addition, Zerenia™ Colombia (the medical cannabis clinic network 100% owned by Khiron) has entered into a contract to provide “integrative health services and pharmacotherapeutic treatment with medical cannabis” with the largest insurance company public of the city of Bogotá, with more than 1.2 million insured. This is the first time that an insurance company Latin America contracts services and products specific to medical cannabis. This represents an opportunity for Khiron and Zerenia to expand its customer and patient base within Colombiawhile continuing to differentiate itself through its unparalleled expertise in medical cannabis and its exclusive scientific evidence.
Alvaro TorresCEO of Khiron, comments: “Today is a great day for the patients of Colombia and Khiron. We welcome the decision of the new Colombian government to categorically impose insurance coverage for our medical cannabis products. With this decision, Khiron will immediately address the backlog of covered medical cannabis products for our patients. In parallel, we have also entered into a one-of-a-kind contractual relationship with one of Colombia’s largest government-owned insurance companies for medical cannabis-specific health services and waivers. These two achievements will allow us to return to predictable recurring revenue, shorter payout periods and better cash flow.”
About Khiron Life Sciences Corp.
Khiron is one of the world’s leading medical cannabis companies with core businesses in Latin America and Europe. Leveraging 100% owned medical health clinics and proprietary telemedicine platforms, Khiron combines a patient-centric approach, physician education programs, scientific expertise, product innovation and a focus on creating access to drive prescriptions and brand loyalty with patients around the world. The Company has a commercial presence in Colombia, Germanythem UK, Swiss, Peruand Brazil. The Company is led by its co-founder and managing director, Alvaro Torresand an experienced and diverse management team and board of directors.
Visit Khiron online at https://investors.khiron.ca.
Caution Regarding Forward-Looking Information
This press release may contain “forward-looking information” within the meaning of applicable securities laws. All information contained in this document that is not historical in nature constitutes forward-looking information. The forward-looking information contained in this press release may include statements relating to the synergies and benefits expected for the Company from the acquisition of the target as well as statements relating to the commercial strategy. The forward-looking information and statements contained in this press release reflect management’s current beliefs and are based on information currently available and on assumptions that management believes are reasonable. These assumptions include, but are not limited to, the expected benefits of Khiron’s business as a result of the Target acquisition, and assumptions regarding market opportunities in the jurisdictions in which the company operates and where it seeks to operate.
Although management believes that its expectations and assumptions are reasonable, forward-looking information is always subject to known and unknown risks, uncertainties and other factors, many of which are beyond management’s control, which may cause actual results will differ materially from those expressed or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, the following: general economic conditions, adverse capital markets conditions, political uncertainties, counterparty risk, inability to obtain required regulatory requirements and approvals, inability to maintain permits and licenses required, business integration risks, and other risk factors discussed in Khiron’s most recent Annual Information Form which is available on Khiron’s SEDAR profile at www.sedar.com.
Due to the foregoing and other risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking information contained in this press release. Readers are further cautioned that the foregoing risks and uncertainties are not exhaustive and that there may be other risks and uncertainties, not currently known to the Company’s management, which could cause actual results to differ materially. and those expressed or implied by the forward-looking statements contained in this press release. The forward-looking information contained in this press release is expressly qualified by this cautionary statement. Khiron disclaims any intention to update or revise any forward-looking information disclosed herein, whether as a result of new information, future events or otherwise, except as required by law.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATORY SERVICE PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE), ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.
SOURCEKiron Life Sciences Corp.