Khiron Life Sciences Archives - Green Market Report

Khiron Life Sciences Corp. (TSXV: KHRN) (OTCQX: KHRNF) announced its financial results for the year ended and quarter ending on December 31, 2021. In the fourth quarter, Khiron reported revenue of $3.6 million an increase over last year’s $2.5 million for the same time period. The net loss mushroomed to $19.2 million over last year’s net loss of $2.3 million for the same quarter.

In 2021, the total revenue increased over 60% YoY to $12.8 million compared to the previous year. the net loss for the full year was $33million versus 2020’s net loss of $24 million.

Khiron is forecasting revenue of $4.5 million for the first quarter of 2021.

“The success we have experienced in Europe so far is due to Khiron’s ability to leverage our novel understanding of medical cannabis in Latin America, driven by our health services strategy and validated by the extraordinary evidence we build every day from the data generated in our clinics,” said Alvaro Torres, Khiron CEO and Director. “Khiron is currently one of the top-selling brands of medical cannabis in the UK, and we have grown our market share rapidly in Germany. We recently opened our first hybrid Zerenia clinic in the UK, and we have received excellent adoption from both patients and doctors.”

Columbia Operation

In April, Khiron announce the opening of a new Zerenia clinic location and a new retail pharmacy in Colombia. Following the announcement at the beginning of the year by the Government of Colombia on mandatory insurance coverage for medical cannabis products, Khiron opened a new clinic location in the city of Bogota, with a maximum annual capacity of 40,000 consults per year. The new clinic, located in El Ensueño shopping mall in Bogota´s fastest-growing district with more than 850,000 people, will allow the company to continue its market leadership in Colombia and offer more services to existing and current patients. In addition, the company has opened its first retail pharmacy location within this shopping center. This pharmacy will allow the Company to sell medical cannabis products to patients outside its own Zerenia network and dispense High and Low THC medical cannabis to insurance companies in the country.

Mr. Torres continued, “In Colombia, growth was partly due to our efforts to ensure insurance coverage for patients by the country’s principal insurance companies. To date, in Colombia, our Zerenia Clinics have served more than 20,000 individual patients with medical cannabis. In Peru, we obtained key final product registrations (“Alixen”), and we will continue to grow as we introduce new THC-based formulations to the Peruvian market. During the second half of the year, we sold our first Khiron-branded product in Brazil, a market of more than 230 million people. We are currently completing construction of our first clinic in Rio de Janeiro, and introducing THC-based medications, which will position us as one of the top companies in medical cannabis in this country. As we focus on our B2C medical cannabis strategy, Khiron has also decided to discontinue sales of our Kuida CBD-based cosmetics product line. Although we are very proud of the brand we created, it is clear that our biggest growth opportunities are within the medical cannabis sector, where revenue is increasing quickly. In addition, the Company no longer requires our cannabis cultivation license in Uruguay as we are currently exporting our products directly from Colombia. The Uruguay asset was purchased in 2019 for a total consideration of approximately 8.5 million shares.”

Khiron Life Sciences Corp. (OTCQX: KHRNF) reported its financial results for the quarter ending September 30, 2021 with total revenue of C$3.5 million growing over last year’s revenue of C$1.9 million for the same time period. Khiron also delivered a 50% year-over-year reduction in a net loss of –$3.3 million versus –$6.7 million for the same quarter in 2020.

“In Q3, we achieved strong results and broke revenue and profitability milestones, surpassing our first million dollars in medical cannabis revenues and gross profits. Prescription growth were driven by our patient-focused operations in Colombia and Germany. In the first 9 months of 2021, we have already exceeded 2020 medical cannabis sales by more than 600% while maintaining medical cannabis margins of over 89%. ” comments Alvaro Torres, Chief Executive Officer and Director of the Company.

Mr. Torres continues, “As expected, Europe is becoming a more significant region for Khiron, representing 31% of our medical cannabis revenue. With the opening of Zerenia Clinics in the UK, we have now established an international clinic footprint that will continue to drive sustainable growth in the future. A year ago, our company was just starting medical cannabis sales in Colombia, and now we have 15 clinics, in 5 countries, and soon in Mexico. We are very excited about our quarterly growth rate, and the growing evidence that Khiron is fulfilling its mission to improve the quality of life of our patients.”

Looking Ahead

Khiron noted that it is starting the fourth quarter with a cash balance of $15.4 million and a working capital balance of $26 million, However, in the company filing it cautioned that the company must prudently manage its cash and maintain its liquidity amidst the material uncertainty of incoming cash flows. In the filing, the company stated, “While the company will avail itself of financial relief measures, management believes that the company should have sufficient liquidity to continue operations for at least the next twelve months, satisfy all commitments and repay its liabilities arising from normal business operations as they become due.” Khiron said it has implemented cost reductions in salaries, marketing, and
other administrative functions and that capital expenditure programs were postponed, where possible.