Peru attracts international companies thanks to its law on medical cannabis

After the approval of the new cannabis legislation last year, it was evident that Peru's cannabis industry was going to develop at a rapid pace. Now, one year after, investors from all over the world are looking at the Latin American country in order to invest and develop their cannabis businesses. One of them is Khiron, which received authorization for the import of its full spectrum CBD oil into the country.

Peru is becoming a strong medical cannabis business hub. Since February 2019, when it approved a new regulation, which is more flexible than the Brazilian one, the country has attracted the interest of international companies. In July alone, three licenses from international companies were approved.

The Canadian company Khiron announced operations in the country last Thursday, July 23rd. The company is authorized to import full-spectrum CBD (cannabidiol) oil, which it produces in Colombia. For commercialization, Khiron entered into a partnership with the Universal pharmacy, with points of sale in the main cities of the country.

Another highlight of July was the Uruguayan Ramm Pharma Corp. The company was able to register Epifactram – pure cannabidiol for the treatment of epilepsy. The drug will be distributed by the regional partner CannFarm.

The Canadian company Canopy Growth also came up with news. The company obtained Yellow Oil’s health registration (20 mg/ml). It is Canopy’s first product on the Peruvian market – despite not being in trade yet. The company is awaiting two more registrations, that of Spectrum Blue (with balanced amounts of CBD and THC) and that of Spectrum Red (predominantly THC).

Companies are betting on Peru to expand their business

There are also many companies that are preparing to meet the requirements of Anvisa (Health Surveillance Agency) in Brazil, but in parallel are betting on the Peruvian registration.

That is the case of VerdeMed, a Canadian company focused on the Latin American market. According to the director for the area, Fábio Lampugnani, the company applied for the registration of two products, a mouth spray, CBD and THC in the same proportions, for multiple sclerosis. The other is an isolated CBD oil (100mg / ml) for the treatment of childhood refractory epilepsy. “We applied for a natural product for use in health. It is not a drug category,” said Lampugnani. In Brazil, every cannabis product has to fit as a drug and follow the rules required for any type of medication.

According to Peruvian legislation, companies can order in two categories, drug and natural for use in health, which have different rules. “In the case of a natural product, a simplified dossier is presented when compared to the drug,” explained Lampugnani. Therefore, registration is usually faster than that of a drug.

“Peruvian legislation has several advantages, which together are stimulating business,” said Andre Vazquez Vargas, CEO of CannFarm. “Another advantage is that sales are due to regular and handling pharmacies. There is no need to have dispensaries, as in the USA.” The regulation does not limit the amount of THC and CDB. Doctors have no restrictions on the specialty to prescribe.

The Peruvian government expressed its support for medical cannabis

The Peruvian government supports and encourages medical cannabis. In January, the American Anden Naturals won the tender opened by the Peruvian government for the purchase of 10 liters of CBD oil.

The company beat two other strong competitors from the international market, Pharmacielo and Aurora. For three months, the product was on sale at the government pharmacy. However, the stock has run out, according to local sources. The country has issued 17 import licenses. Three pharmacies have marketing authorization, although none have products for sale yet.

(Featured image by Tree of Life Seeds via Pexels)

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Valerie Harrison

Valerie Harrison is a mom of two who likes reporting about the world of finance. She learned about the value of investing at a young age upon taking over her family's textile business when she was just a teenager. Valerie's passion for writing can be traced back to working with an editorial team at her corporate job, where she spent significant time working on market analysis and stock market predictions. Her portfolio includes real estate funds, government bonds, and equities in emerging markets such as cannabis, artificial intelligence, and cryptocurrencies.