Khiron Life Sciences has received approval from the National Cultivar Registry and the Technical Direction of the ICA for the commercialization of 17 strains of cannabis. The approvals bring the total number of registered strains to 22 and positions the Company to commercialize and distribute CBD cannabis, which is currently being cultivated at Khiron's facility near Ibague, Colombia. "This development, which results from a successful ICA operational review, firmly positions the Company to commercialize its medical cannabis product sales in the third quarter of 2019," the team with the company explains.
The Company intends to begin commercial production of CBD extract in 2019. "This production will be used primarily to produce medicine and sold to patients individually as specifically prepared formulations. This direct to patient distribution method is anticipated to deliver higher margins than producers focused on wholesale export distribution models," they further explain. "Based on independent market research, it is estimated that Colombia has upwards of 6 million potential patients for medical cannabis products (IMS Quintiles). Benefitting from the proprietary independent market research Khiron has commissioned, the Company's medical and scientific teams will utilize state-of-the-art cultivation and extraction processes to produce a portfolio of predefined, precise, and effective formulations to address the unmet medical needs of patients."
In addition to commercializing CBD production, the Company's proprietary psychoactive cannabis varieties have now undergone and completed a rigorous regulatory process to receive strain approval from ICA. "With these strain approvals, we can now work to obtain approval of the THC strains for commercial quota issuance with the Quota Technical Group," they point out. "Before commercial quotas can be awarded, the Company must demonstrate an established market demand and distribution method. Based on the potential addressable patient network Khiron has established with medical associations and the ILANS acquisition, the Company believes it has established a leading position in terms of receiving a favorable quota allocation. To date there have been no awards of commercial quotas for THC in Colombia."
Alvaro Torres, CEO of Khiron Life Sciences, commented, "Khiron has continually focused on expediting our timing to market, while ensuring the highest standards of product quality and consistency. With these approvals secured, Khiron is now poised to introduce its medical cannabis products in Colombia by the third quarter of this year, which once again, demonstrates the Company's in-depth understanding of patient needs, its strategic and evidence-based approach, unparalleled regulatory knowledge, and its leadership role in the Latin American market."
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Khiron Life Sciences Corp.