Khiron Strategically Positioned to Enter Mexican Medical Cannabis Market
TORONTO, May 29, 2018 /CNW/ - Khiron life Sciences Corp. ("Khiron" or the "Company") (TSXV: KHRN), a Canadian integrated medical cannabis company with its core operations in Colombia, announced today the Company is strategically positioned to enter the medical cannabis market in Mexico by acting as a key sponsor of the CannaMexico World Summit. The conference will be hosted by former Mexican President, Vicente Fox Quesada, a leading advocate for medical cannabis as an alternative treatment method for a wide range of medical conditions.
The opportunity to exchange information with medical professionals alongside former President Fox, represents a core element of Khiron's market strategy of education and sharing of experiences across borders in Latin America. At the conference, Khiron's advisor Dr. Danial Schecter, one of the leading medical cannabis experts in Canada, will present medical information on cannabis. Khiron will also host a booth and attend a private lunch with former President Fox and key representatives from Cofepris, the Mexican equivalent of the U.S Food and Drug Administration (FDA). Mexican media will provide coverage of the event and showcase Khiron's involvement.
Consistent with the Company's market entrance strategy, Khiron:
- will incorporate a Mexican subsidiary to submit licence applications, subject to TSXV approval;
- has completed an in-depth regulatory review of the country's medical cannabis legal landscape;
- has assessed the market needs for medical cannabis;
- is aligned with key opinion leaders; and
- is well positioned to educate physicians on the benefits of medical cannabis.
Khiron will provide further market updates as the regulatory and application process in Mexico advances.
Mr. Alvaro Torres, President and CEO of Khiron, stated,
Mexico represents a significant market for Khiron. With a population of approximately 123.5 million people and access to nearly 11.7 million patients for medical cannabis, we see an attractive opportunity to transfer the wealth of knowledge we have created into this new market. Our market entrance model will be further applied across the Latin American region as we seek to expand our operations into markets including, but not necessary limited to, Brazil, Chile, Argentina, Peru and Panama.
I would also like to thank former President Fox for taking a leadership role in the discussion about medical cannabis in Mexico. Through active engagement and discussion, we firmly believe the country of Mexico can develop one of the leading markets for medical cannabis in Latin America and address the unmet medical needs of millions of potential patients.
Mexican Cannabis Regulations
On June 19, 2017, Mexico enacted new laws regulating medical cannabis. The country's new laws allow for the use of cannabis medicinally, so long as the products contain less than 1% THC. The current proposal will regulate the sanitary control of cannabis and its pharmacological derivatives for medical and scientific purposes, determine the sanitary requirements for the commercialization, and manage the export and import of products with a variety of industrial applications.
The regulations have two application authorities: the Ministry of Health of Mexico and the Federal Commission for the Protection against Sanitary Risks (COFEPRIS). In coordination with these entities, the regulations created a registry called Inventario Nacional de Investigación en Materia de Cannabis (INMIC), in which every agency, public institution, and private market participants, will be registered. The regulations provide for three types of licences: Cultivate for Scientific Purposes, Produce Derivates for Scientific Use, and Import Products or Raw Material for Marketing and Distribution.
The Mexican government and related agencies of the government are currently in the process of issuing formal policies for medical cannabis. Khiron believes once the policies have been finalized, the Company will be able to import cannabis to Mexico from Colombia in 2018 or early 2019. The Mexican regulations do not currently contemplate the cultivation of cannabis in Mexico.
Mexico is a Spanish speaking country with a total population of 123.5 million people. The country is a stable democracy and one of the leading economies in Latin America. The country produces a gross domestic product of approximately US$1.25 trillion and is the 13th largest economy in the world on a nominal basis (Source: International Monetary Fund).
The potential market for medical cannabis includes an estimated 11.7 million patients with a variety of medical conditions potentially suitable for treatment with medical cannabis. The table sets forth the total breakdown of patient condition, in millions of potential patients:
As depicted, the Mexican market for medical cannabis is concentrated in chronic pain, anxiety, epilepsy, depression, PTSD and insomnia. These medical conditions represent approximately 90% of the total potential market for medical cannabis in Mexico. Khiron will develop products to address these conditions and focus on meeting the needs of these patients with consistent, affordable and widely available medications. Completed by QuintilesIMS, Khiron's market research studies also include information on doctor and patient priorities and concerns. Through the Company's e-learning platforms and market education opportunities, Khiron will seek to lead these discussion topics in Mexico.
On May 30, 2018, Mexico will host the CannaMexico World Summit to be held at the San Cristóbal Center in León, Guanajuato, with the objective of exchanging information and knowledge about research on medical cannabis. At the event, companies in the fields of science, research, finance, medicine, government, technology, innovation, agro-industry and entrepreneurship, among others, will participate in open discussions about medical cannabis. This event will be one of the first of its kind in Mexico.
About Khiron Life Sciences Corp.
Khiron is a Canadian integrated medical cannabis company with its core operations in Colombia, and is fully licenced in Colombia for the cultivation, production, domestic distribution, and international export of both tetrahydrocannabinol (THC) and cannabidiol (CBD) medical cannabis. Khiron combines leading international scientific expertise, agricultural advantages, and branded product market entrance experience to address the unmet medical needs in a market of over 620 million people in Latin America.
This news release contains "forward-looking information" within the meaning of applicable securities laws. The information about Khiron contained in the press release has not been independently verified. Although Adent believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because Adent can give no assurance that they will prove to be correct. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risks that the parties will not proceed with the Transaction; that the ultimate terms of the Transaction will differ from those that currently are contemplated; and that the Transaction will not be successfully completed for any reason (including the failure to obtain the required approvals or clearances from regulatory authorities). The terms and conditions of the Transaction may change based on Adent's due diligence and the receipt of tax, corporate and securities law advice for both Adent and Khiron. The statements in this press release are made as of the date of this release. Adent undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of Adent, Khiron, their securities, or their respective financial or operating results (as applicable).