Stepping away from a history of illegal drug trade, Colombia is in the process of developing a structured, legal framework for medical cannabis, and Canadian cannabis companies have their sights on the wealth of opportunity in the Latin American nation.
Colombia’s medical cannabis market was opened in 2015 and includes the production and export of oil- and tincture-based products. The country is an investment target because of its ideal climate, existing knowledge and expertise, low wages and the breadth of its population. It is also considered to be one of the stepping stones into the rest of the Latin American market, which is also on the rise.
In a recent article, the CBC provided insight into the jurisdiction and shared input from Canadian companies such as Canopy Growth (TSX:WEED) that are becoming key players in the Colombian medical cannabis industry. One such company is Khiron Life Sciences Corp. (TSXV:KHRN), a first mover in Colombia’s cannabis cultivation space which has 80,000 square feet of cultivation space and has received authorizations from the Colombia National Food and Drug Surveillance Institute (INVIMA) for the production of eight CBD-based skincare products.
In the article, Khiron president Chris Naprawa spoke to the potential size of the medical cannabis market in Colombia. He expects that the market will host nearly 6 million patients that are currently spending $550 per year on treatments. This, paired with the low cost of production in Colombia, spells good news for Colombia-based companies. “We will be enjoying extraordinary margins if we charge based on what people are already spending,” he told CBC.
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