“I am pleased to announce the first expansion of our Zerenia brand beyond Colombia. Knowing that prescription rates at our Zerenia clinics are 14 times higher than those of our external clinic partners, we are excited to bring a proven marketing, sales, and distribution model to a market of over ten million people…,” commented Alvaro Torres, CEO and Director of Khiron.
Following the success of Khiron’s clinic strategy in Columbia, the Company’s newest Zerenia™ clinic has been established as a strategic partnership between Khiron and Clinica Montesur. Clinica Montesur is a specialized medical provider operating in Lima, with over 90 physicians and more than 11,000 patient transactions annually. Furthermore, Clinic Montesur has 30 years of experience in Peru, providing high quality care across 19 areas of specialization, including oncology, dermatology, ophthalmology and psychology. In addition to its professional and highly qualified staff, Clinica Montesur possesses state-of-the-art biomedical equipment.
As part of the strategic partnership, Clinica Montesur will provide clinic infrastructure, including its medical facility, clinic permits, systems, and medical staff, among others. This partnership will leverage Khiron’s Zerenia™ medical cannabis model, including the Company’s medical cannabis education platform, real-world evidence, and standard operating procedures. As previously announced by Khiron, patients will be able to fill prescriptions for High THC and Low THC medical cannabis at ten Farmacia Universal S.A.C locations throughout Lima.
To date, our Zerenia clinics have played a vital role in not only introducing patients to Khiron products, but also in developing an exceptional patient experience and growing base of returning patients. As we continue to develop our unique, service-oriented platform, we are proud to introduce Zerenia to the Peruvian market, where initial reception to our products has been strong since sales began late last year,” continued Mr. Torres.
For context, Khiron’s Zerenia™ refers to the Company’s satellite clinic model. A satellite clinic refers to a freestanding outpatient facility, where staff interaction and delivery of services occur between the clinic and parent facility, which is Khiron in this case. With this in mind, Zerenia™ is the category leader in medical cannabis sales in Columbia, with over 20,000 filled prescriptions and over 8,000 individual patients to date, 50% patient retention, and average 90% gross margins. With a population of 10 million, Lima, Peru, presents a lucrative opportunity for Khiron. In fact, in Q1 2021, Khiron’s medical cannabis sales in Peru increased by over 175% compared to total sales in 2020.
Khiron’s share price opened at $0.48 and are currently trading at $0.46 as of 11:06AM ET. The Company’s shares are down -4.17%, indicating that there has been some noticeable change following the news.