In Colombia, EPS (Healthcare Providing Entities) function similar to PPO or HMO health networks, administrating health care between IPS (Healthcare Providing Institutions) units such as hospitals and clinics, and healthcare consumers, which choose from a selection of EPS providers. Some are private companies, others, such as Capital Salúd is owned by the city of Bogotá.

Under the new agreement, Zerenia will provide integrative health services and medical cannabis products to patients diagnosed with chronic pain, mental health, neurological conditions, and epilepsy, amongst others. Capital Salud serves 1.2 million individuals, including approximately 280,000 patients diagnosed with chronic conditions.

Zerenia has already begun treating Capital Salud patients.

“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 Bogotá city council member Juan Baena.

“The city of Bogota has embraced medical cannabis as a catalyst for social and economic growth. We are honored that Zerenia was selected by CAPITAL SALUD EPS to provide medical cannabis services and products to their patients. Over the past 2 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,” said Khiron CEO and co-founder Álvaro Torres.

“We are thankful for the confidence placed by CAPITAL SALUD on Zerenia, and with an installed capacity of over 300,000 annual consultations, we are more than prepared to service their patient base. 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,” he continued.

Khiron states that this is the largest study of its kind in Latin America, and the first published clinical evidence on the effectiveness and safety of Khiron’s THC and CBD oil-based cannabis formulations, the two most prescribed products at Khiron’s Zerenia Clinics in Colombia. Frontiers journals rank among the most influential in their academic fields based on total citations and ranks as the 3rd most-cited publisher among the 20 largest publishers.

The study, a joint effort by medical researchers from Khiron Life Sciences and doctors from Zerenia Clinics in Colombia and Europe, captures patient-reported outcome measures (“PROMS”) and adverse effects in a cohort of 2112 adult patients diagnosed with chronic pain of diverse etiology. Between May and September 2021, patients received adjuvant treatment with Khiron’s oral oil-based cannabis formulations at the Latin American Institute of Neurology and Nervous System (ILANS-Zerenia) in Bogotá, Colombia.

• 9 out of 10 patients reported some degree of improvement of their chronic pain.
• 7 out of 10 reported an improvement larger than 50% after 4 weeks of treatment.
• 7 out of 10 patients did not experience any adverse effects related to the treatment. Reported adverse side effects were mild and transient, fading after 12 weeks.

Khiron Life Sciences CEO & Co-Founder Álvaro Torres

“This study, based on Khiron’s medical products, is critical to reassure physicians and health insurance providers of the efficacy of medicinal cannabis to treat chronic pain. The global impact and economic burden of chronic pain in our society, mounting medical evidence will increase access to cannabinoid-based medicines worldwide,” said Khiron CEO Alvaro Torres. “The recent vote in the US House of Representatives promoting medical research on cannabis clearly shows the pressing need to develop effective and safe cannabis-based medication for suffering patients worldwide. With this and upcoming studies, Khiron will continue to stand above in the field of medical research and to expand the access for patients in those jurisdictions in which we are present”.

Guillermo Moreno-Sanz, the first author of the study and Global Scientific Director of Khiron Life Sciences adds, “We believe these findings to be generalizable across patient populations, considering that our results are extremely well-aligned with those reported by researchers working with similar clinical populations in nations with long-standing medicinal cannabis access programs, such as Israel and Canada.”

Khiron claims most observational and experimental studies investigating the efficacy of medical cannabis for pain management are of relatively short duration and use a disparity of cannabinoid-based products, routes of administration, and dosing regimens, but this study is differentiated as it describes the short-, mid- and long-term efficacy and safety of two monovarietal formulations containing THC and CBD in different ratios (1:1 and 1:25, respectively), and investigates the contribution of patient’s sex, and age. Most participants were female (76.1%) with an average age of 58.7 years old. One third of the participants were elderly (>65 years old).

As Khiron continues to expand its research and business globally through Latin America and Europe, the company says additional studies are expected to continue to demonstrate the Company’s business model, creating a 360-solution for health care providers, insurance companies, and patients to benefit from the prescription and positive health outcomes from medical cannabis.

See also: Khiron Life Sciences CEO Álvaro Torres Discusses The Cannabis Company’s Unique Go-To-Market Strategy & Its Network Of Zerenia Integrative Care Clinics

“We are very excited about this new Zerenia format and our ability to treat more patients and create closer relationships with insurance companies in Colombia. Our Zerenia clinic network now has more than 13 locations in Colombia, Peru, and the UK, and we will soon open new locations worldwide. Our unique strategy has allowed us to grow medical cannabis sales by more than 900% in Colombia in 2021, increasing patient conversion and retention rates,” said Khiron CEO Álvaro Torres.

“The selection of this new location follows a deep desire to be closer to our patients and offer insurance companies better access for their patients while maintaining the service standards that are making Zerenia a leading global medical cannabis clinic network. Now that the Colombian Government has mandated medical cannabis to be covered by all insurance companies, we believe this new location strategy will continue to drive great growth and profitability for Khiron and will continue to allow us to improve the quality of life of more patients.”

Khiron retains investor relations firm

Khiron also announced that subject to the approval of the TSX Venture Exchange, it has retained Arrowhead Business and Investment Decisions, LLC, a US-based investor relations firm which is headquartered in New York City and was established in 2008. For the initial six-month term, Arrowhead will be paid $50,000 USD. Khiron said in a written statement that Arrowhead is not related to the company and has no interest, directly or indirectly, in Khiron or its securities.

“Our integrated clinic model continues to connect patients, doctors, and insurance, helping improve patient outcomes.  The integrated medical clinic approach offers a range of treatments and services, including medical cannabis, that help patients save time and money by not having to travel to seek out individual treatments.   Almost half of our patients have insurance coverage now, a tremendous improvement since our first covered prescription in December of 2020,” said CEO Alvaro Torres

Medical Cannabis

Latin America

• Medical cannabis prescriptions grew by more than 40%, from Q2 2021
• Year to date medical cannabis prescriptions have exceeded 35,000 units, 600% more than the entire 2020 fiscal year
• Total medical cannabis patients in Q3 increased to more than 9,600, up 32% from Q2 2021
• 62% of the patients in Q3 were returning patients, up 35% from Q2 2021
• 47% of units sold were covered by insurance
• New satellite clinics accounted for 10% of prescriptions

Europe

• Europe generated 30% of the company’s medical cannabis sales in Q3 2021
• Germany revenues expected to grow more than 80% and UK revenues expected to grow more than 70% quarter on quarter
• The company has increased its imported volumes in the U.K., ensuring uninterrupted supply for all Khiron patients

Health Services

• Year to date patient visits at Khiron clinics have exceeded 104,000, topping all patient visits in 2020
• Revenue in health services is steadily returning to normal at Zerenia clinics as pandemic measures ease
• Total quarterly patient visits at Zerenia were up 18% quarter on quarter
• Khiron will expand its flagship clinic brand, Zerenia to the UK, with the first Zerenia opening in London in Q4 2021.

“Through the end of Q3, the company continued to make steady progress in helping more patients access medical cannabis. Europe is starting to become an important market for the company, and we will soon be opening our first Zerenia medical cannabis clinic in the UK,” added Torres.

October Investor Conferences

Khiron also announced it will be participating in the MJBIZ Conference on Thursday, October 14th at 4:00 pm ET as a member of the panel ”The Latin American Cannabis Supply Chain: Do’s, Don’ts and Industry Domination” and also the Benziga Cannabis Capital Conference on October 15^th at 3:45pm ET along with a Virtual executive interview with Khiron board member and former President of México, Mr. Vicente Fox: Thursday, October 14th & 15th at 1:10 p.m ET

The panel hosting Khiron is titled “International Spotlight – Continued Cannabis Expansion in European Markets,” and will be Friday, October 15th at 2:10 p.m ET

Hired in October 2019 to the role of Managing Director and Chief Legal Counsel, Khiron Europe, Katterbach’s promotion to the position of President aligns with the company’s commitment to diversity and inclusion throughout the organization, including at the executive level, the company said in a statement.

“I would like to congratulate Franziska on her appointment, which comes at a very exciting time for our European team. Since joining Khiron, Franziska has been a driving force behind our European operations. Her regulatory expertise, strong leadership skills and exceptional day-to-day management of operations have allowed us to develop a differentiated, asset-light platform. Most recently, the European team launched another new product into the German market while more than tripling shipment volumes, demonstrating strong execution in Europe’s largest market,” said Alvaro Torres, CEO and Director.

Franziska Katterbach herself added: “I am a great believer in Europe’s medical cannabis market and am honored to lead our world-class team as we expand patient access, along with our market presence, in Germany and the UK. On behalf of the Company, I would like to thank Tejinder for his many contributions to our European operations and wish him well in his future endeavors.”

Tejinder Virk left the company to head Akanda, formerly known as Halo Collectives, with operations in Lesotho. His resignation will result in the forfeiture of 2.2 million stock options and 600,000 restricted share units previously awarded.

See also: Khiron Life Sciences CEO Álvaro Torres Discusses The Cannabis Company’s Unique Go-To-Market Strategy & Its Network Of Zerenia Integrative Care Clinics

The quota allocation of 56.5 tons (131,000 pounds) of dry flower for Colombia in 2020, affirms that the international community governing legalized narcotics recognizes the important work of the Colombia government in establishing an effective regulatory framework to support national and worldwide cannabis demand.

The INCB was recently in Bogotá to conduct a two-day training session on the requirements of international drug control treaties regarding the regulation, licensing and reporting obligations under the 1961, 1971 and 1988 international drug control conventions. On December 11 & 12, the INCB secretariat explained how international drug control systems function and allow limited access for legitimate scientific and medical purpose. The organ also discussed statistical reporting obligations under the existing conventions.

“We welcome the INCB announcement and congratulate the government of Colombia on the achievement. The 2020 quota guarantees access to new medical products that can transform patients’ lives,” said Juan Diego Alvarez, the vice president of regulatory affairs for Khiron Life Sciences Corp.

Khiron Life Sciences (TSXV: KHRN, OTCQB: KHRNF, Frankfurt: A2JMZC) claims to be currently the only cannabis company in Colombia with an allocation of quota to manufacture psychoactive medical cannabis for commercial domestic purposes, and one of the few companies also authorized to meet export demand. The authorization is a result of commercial quotas allocated to Khiron by the Colombian Technical Quotas Group (“TQG”), which permit the company to cultivate and commercialize up to 560 kg – or approximately, 65,000 units – of psychoactive, high-THC cannabis in 2019. As of April 2019, Khiron has applied for additional commercial quotas for high-THC cannabis for 2020. TQG decisions on commercial quotas for the year are anticipated to be announced by February 2020.

Photo courtesy INCB

With revenues of approximately $1 billion USD in 2018, EPS SURA is one of the largest health insurance companies in Colombia, and forms part of the wider Suramericana S.A. network across Latin America. The pilot program will allow ILANS to gather patient information and deliver services designed to the individual needs of patients and their families. Further, the launch of the pilot program will leverage both parties’ resources to enhance patient access to integrated healthcare management models, consistent with Khiron’s stated goal to provide effective healthcare options to a population of 620 million individuals in Latin America.

Alvaro Torres, CEO and Director of Khiron, commented: “We are proud to initiate this pilot program with EPS SURA, and for the trust they have placed in ILANS to improve the quality of healthcare management for these initial 450 patients. The program allows us to enhance the patient relationship, and on conclusion, positions us to continue responsibility for their integrated management, including the definition and application of treatment and medical prescriptions and procedures.”

ILANS is one of the most respected, fastest growing, and largest health service network providers in Colombia. The network includes over 60 in-house licensed physicians and clinicians, and services 119,000 patients with strategic locations in target markets, including two  large neurological clinics located in Bogota, Colombia. Khiron is an integrated cannabis company with core operations in Latin America

“This pilot establishes a revenue-generating model for us built around a fixed fee structure, and as we move forward, we anticipate working alongside Latin America’s leading insurance companies to increase the number of patients, and to further expand the application of this integrated care approach.” Says Mr. Torres.

The Toronto-based company plans to use the proceeds to fund the expansion of its cannabis-growing facility in Colombia, purchase equipment, construct clinics, and launch its line of “cosmeceutical” products. Some of the cash will also go toward “general working capital purposes,” stated Khiron Life Sciences.

The shares were sold at $0.90 USD per share on September 12 to raise the overall sum, including the “exercise in full of the over-allotment option,” stated the company that maintains is primary operations in Colombia.

The offering remains subject to final acceptance of regulatory filings by the TSX Venture Exchange (TSXV).

The share sale was completed by a group of agents led by Canaccord Genuity Corp. and including GMP Securities L.P., Sprott Private Wealth LP, and Cormark Securities Inc.

The Toronto-based company, which has operations in Colombia and is looking to begin selling medicinal cannabis products in the country within the year, is joining OTCQB just months after receiving approval to begin trading on the Canadian TSX Venture Exchange in Calgary.

“The OTCQB Venture Market is for early-stage and developing U.S. and international companies,” said Khiron in a statement. “To be eligible for listing, companies must be current in their reporting and undergo an annual verification and management certification process.”