Khiron Life Sciences Corp. (“Khiron” or the “Company“) (TSXV: KHRN), (OTCQB: KHRNF), (Frankfurt: A2JMZC), an integrated cannabis company with its core operations in Latin America, announced today that the Company has signed an LOI with Copservir Ltda., Colombia’s largest pharmacy chain, to distribute Khiron’s medical cannabis products across the country. The companies have agreed to initial discounting and commercial fees and will work towards establishing a definitive commercial contract and detailed distribution plan to begin sales in the second half of 2019.
As Colombia’s largest pharmacy chain, Copservir Ltda., operates over 900 stores across 200 cities and municipalities with a traditional brick and mortar presence representing 75% of its CAD 500 Million / year sales. In addition, a growing virtual presence represents 25% of its sales with an annual growth rate of over 20%. The company combines its retail and virtual presence with a strong distribution and logistics platform with four distribution centres in the main cities of Colombia and a home delivery service in 120 cities. This makes the Colombian Government-administered company the largest by store-count pharmacy chain in the country.
On completion of the agreement, Khiron will have established a compliant and secure distribution platform for its medical products across Colombia, starting with its custom-made pharmacy compound strategy. Copservir’s extensive brick-and-mortar presence, virtual channel and distribution capability will allow Khiron to offer patients across the country the option for pick-up or home delivery of their medical cannabis formulations. Coupled with Khiron’s ongoing medical education platform to educate and engage doctors and physicians across the country, this distribution strategy will allow Khiron to reach more patients in a safe, compliant and innovative matter.
Alvaro Torres, Khiron CEO and Director commented, “The proposed agreement with Copservir Ltda. represents a significant development for Khiron, offering the opportunity to leverage our first mover advantage to distribute medical cannabis products across Colombia and service the more than 5 million potential patients in the country. We also view Copservir entering the medical cannabis market as a milestone validation of the market opportunity in Colombia. By offering a platform that makes it easier for patients to access their formulations in a compliant and safe manner, Khiron establishes a leadership position in the medical cannabis market in Colombia.”
The companies will work towards establishing definite commercial and distribution agreements to begin sales in the second half of 2019.
SOURCE Khiron Life Sciences Corp.