Colombia’s medical hashish exports continued to develop final 12 months, though gross sales nonetheless haven’t reached the extent that the nation’s operators envisioned.
In 2023, the worth of medical hashish exports from Colombia was $10.8 million, in accordance with figures supplied to MJBizDaily by ProColombia, a authorities company in control of selling nontraditional Colombian commerce.
The determine represents an 11.3% improve over 2022, when Colombia’s medical hashish exports amounted to $9.7 million, a 96% soar from 2021.
Business sources see the newest export figures as an indication the Colombian hashish market continues to mature.
“I feel the sensible, environmental and socioeconomic advantages of cultivating and extracting in Colombia are lastly beginning to present some alerts of their potential,” stated Aras Azadian, CEO of Avicanna, a Canadian biopharmaceutical firm with operations within the South American nation.
“It’s a really small market alternative for now, however we do count on it to develop as medical and pharmaceutical tasks mature, comparable to our (drug) Trunerox acquiring advertising and marketing authorization in Colombia or our companions in Brazil Ease Labs acquiring authorization in Brazil, each of which use our Colombia-made energetic pharmaceutical components.”
Trunerox is Avicanna’s CBD–primarily based pharmaceutical drug for individuals with epileptic situations Lennox-Gastaut syndrome and Dravet syndrome.
Azadian stated the medical hashish market takes longer to develop, and he believes only some corporations can be left standing as a result of the market alternative doesn’t justify the billions of {dollars} invested in Colombia nor the present variety of operators.
“General, it’s only a longer-term enterprise mannequin – medical and pharma – because it takes longer to get merchandise accepted,” he stated. “Now that some are accepted, we’re seeing potential scale.”
ProColombia stated 2023 hashish exports included completed merchandise comparable to cosmetics, dietary dietary supplements and phytotherapeutic merchandise in addition to plant-based medicines.
Different hashish exports included:
- CBD isolates.
- Crude extract.
- Distillates.
- Seeds.
Hashish exports
The highest locations for Colombia’s exports have been altering as guidelines evolve in different nations.
Brazil was the highest vacation spot for Colombia’s medical hashish merchandise in 2023, overtaking Argentina, in accordance with the ProColombia information shared with MJBizDaily.
Brazil accounted for 32%, or $3.4 million, of Colombia’s whole hashish exports final 12 months.
Australia accounted for one-quarter of the exports, or $2.68 million, a 99% improve over 2022.
Germany was the third-largest importer of Colombian hashish, with $1.53 million, or 14% of the overall.
Azadian stated pharmaceutical cannabinoid medication comparable to Trunerox are permitted to make medical claims, which may assist enhance exports from Colombia within the coming years.
“Now you’ll be able to take that product and register it in one thing like 22 different nations within the Pan-American area, as a result of they’ve a reciprocal understanding with INVIMA (Colombia’s Nationwide Meals and Drug Surveillance Institute).
“I consider our drug Trunerox, if executed correctly, has potential to be a significant export out of Colombia as a completed product reasonably than uncooked supplies that others goal for.”
Hashish shelf life
Late final month, the Colombian ministries of Well being, Justice and Agriculture prolonged the time-frame that THC merchandise will be bought or exported after manufacturing to 48 months, doubling the earlier restrict of two years.
If the product isn’t bought or exported after 48 months, it should be destroyed.
Business officers stated the affect of the rule change will fluctuate from firm to firm, with some seeing it as crucial and others saying it received’t have an effect on their operations in any respect.
Julian Wilches, an government with Colombian hashish producer Intelligent Leaves, stated the unique function of the rule was to forestall corporations from stockpiling huge quantities of unsellable hashish – as has occurred in Canada.
He stated the hashish business was lobbying the federal government to remove the rule altogether, however the two-year extension successfully solves the issue.
“In apply, the extension solves the issue, as a result of no one may have the identical stock for 4 years,” Wilches advised MJBizDaily in a telephone interview.
“For some small and medium-sized growers, that stock was the one capital they’d, in order that they should do one thing with it.”
PharmaCielo, one other hashish producer headquartered in Canada with operations in Colombia, stated the rule change is “of quick profit” to the corporate and the business total.
“Because the nation’s largest hashish producer, PharmaCielo has over 2 tonnes (2.2 tons) of THC extract in stock to help anticipated progress in worldwide gross sales. … (It) would have been topic to destruction beneath the legacy framework,” the corporate stated in a information launch.
“This decision will allow the retention of high-quality THC extracts in stock – each now and long term – to make sure we will shortly fulfill demand as our worldwide buyer base continues to develop,” PharmaCielo CEO Marc Lustig stated.
Colombian hashish gross sales
Authorities-funded medical insurance in Colombia was expanded to incorporate medical hashish in late 2022, however the home market has struggled to take root.
Thus far, solely two medical hashish medication have obtained an INVIMA advertising and marketing authorization in Colombia.
The market’s remaining medical hashish merchandise are magisterial preparations.
Ernesto Castilla Bautista, senior authorized director for Avicanna, stated the Colombian magisterial preparation mannequin is structured so Good Manufacturing Follow-certified services can not maintain stock of magisterial preparations; they’ll manufacture merchandise solely after they’ve acquired a prescription.
“This vastly hinders the (a big) facility’s means to make the most of economies of scale,” Bautista stated.
He added that some insurance coverage corporations have denied medical hashish protection, arguing that magisterial preparations don’t match INVIMA’s authorization.
Bautista stated Colombian courts have rejected this argument and ordered insurance coverage to cowl the magisterial preparations, “however the course of finally ends up taking a number of time and being very cumbersome for the sufferers.”
“Hopefully,” he continued, “with merchandise like Trunerox having INVIMA approval that explicitly consists of the approved indications and with the ability to manufacture batches earlier than a prescription is issued, medical hashish prescriptions in Colombia will begin to improve since sufferers may have entry to cheaper alternate options that even have extra easy protection.”
Matt Lamers will be reached at matt.lamers@mjbizdaily.com.