According to Prohibition Partners, the EU and Latin American medical cannabis markets are forecasted to grow at more than 50% per year through 2025.
One of the most significant growth catalysts for Khiron is Colombia’s and Germany’s national insurance coverage for cannabinoid-based medicines.
Looking at the current quarter, as of April, prescriptions in Colombia were already equal to 44% of those filled in Q1, positioning the Company for another record quarter in Q2.
When analyzing Khiron’s business on a year-over-year comparative basis, we determined that it has been executing on a series of EU-focused high-impact growth projects and we are favorable on the growth profile that is associated with this vertical of the business.
Khiron has been executing on an asset-light growth strategy with strategic partnerships and alliances with focus on European core markets in the UK and Germany and we believe these markets provide an attractive way to enter new markets in the EU.
36kg of Khiron 20/1 medical cannabis product, a THC-dominant cannabis flower product which started to be prescribed to patients in the UK in July 2020.
According to Prohibition Partners’ most recent EU cannabis report, Germany’s patient base is expected to continue to increase as national insurance is offered to medical patients.
Following the development, Khiron will have both THC-dominant and CBD-dominant cannabis products available for sale in Germany and we are favorable on the diversity of the offering.
With regard to the German cannabis market, the transaction was completed as part of a distribution agreement that Khiron has with Nimbus Health, a leading EU-GMP/GDP certified medical cannabis distributor in Germany with a network of 300+ pharmacies.
Through its EU-GMP certified supply chain partners in Europe, Khiron continues to expand its offering of medical cannabis products.
Khiron is using its established network of European contract manufacturing and distribution partners to accelerate production and delivery of EU-GMP certified medical cannabis products and we are bullish on this opportunity.
Khiron is well positioned to capitalize on the EU cannabis market through its differentiated education platform, the amount of clinical evidence it has, and the EU-GMP certified products that are available for prescription.
Last month, Khiron reported to have received a Continuing Professional Development accreditation in the UK for the Khiron Academy, which is a global medical cannabis education platform.
To further advance the program, Khiron entered into a strategic partnership with Cellen Therapeutics, a leader in digital healthcare in the UK, so as to increase patient access through medical cannabis education initially.
Over the last year, physicians trained by Khiron in Latin America have issued over 20,000 prescriptions, with a compound monthly growth rate of nearly 50% in 2020.
During the last year, Khiron has reported impressive growth and we believe the business is in the early innings of a multi-faceted expansion strategy.
Based on the numbers that Khiron released with regard to the current quarter, we expect Khiron to report strong growth in future earnings reports.
We believe that Khiron is in a league of its own and this is an opportunity that is trading at a considerable discount to companies that have a smaller footprint and more limited growth prospects.
We believe that Khiron is targeting high-value and not-saturated verticals of the cannabis industry and believe the market is discounting the growth prospects that are associated with its strategy.
Pursuant to an agreement between StoneBridge Partners LLC and Khiron Life Sciences Inc.
All information that we provide is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities.