The Business Year Special Report
Medical cannabis
With thousand years of knowledge in agriculture, Peru offers many advantages for cultivating cannabis, and moving forward Peruvian patients’ access to cannabis will only increase.
What is the state of your current business?
CURT SCHWARZ We are a fully licensed importer of cannabis derived products into Peru. We aim to be vertically integrated by 1Q2021. We have secured 25ha south of Lima in Quilmana, Canete. Our pharmaceutical lab is currently under construction, where we will be able to process approximately 100,000kg of dry flower. We are pleased to have won the only two government-issued bids to date. Since the pandemic began, we have been educating patients and doctors through webinars which are carefully curated and given by top industry professionals. The webinars are part of a framework agreement with the leading medical university in Peru, Universidad Peruana Cayetano Heredia. We are also pleased to have been the first company to legally import cannabis derived products into Peru for our own inventory. We are currently distributing our products to our partner retail pharmacies. Our cannabinoid-based formulations can be found in over 10 pharmacies in Lima.
What has been your experience with the country’s regulatory environment, and what is your outlook for its future development?
ANDRÉS VÁZQUEZ VARGAS The current Peruvian law, passed on November 17, was the result of the efforts of a group of families that were demanding from the government the right to administer medical cannabis to their relatives. That law is specific to medical and therapeutic uses and does not allow for industrial uses, as in the case of hemp, or the recreational use of cannabis. That is an important characteristic of this market because the regulator wanted to put Peruvian patients first, and this law was not targeted at business opportunities for export. Moving forward, the pace will accelerate with regard to Peruvian patients’ access to cannabis. Currently, there are two private pharmacies selling cannabis-derived products and more than 30 pharmacies are authorized to sell cannabis-derived healthcare products. Even though the law allows exports, cultivation, and business to develop, these are not the main concern of the regulator for now.
You supplied CBD oil to the Peruvian government to supply it in certain pharmacies. What did that mean for the company?
CS It was a historical milestone for Peru because these were the first cannabis-derived products that legally entered the country. The bidding was a fast process in which three or four other companies participated. The product was well-received, and more than 150 bottles were sold in 48 hours. We did not want price to be a restriction, especially when so many patients were in need of the formulation. Our main value is our supply chain. We are well integrated, and can offer competitive prices. We are particularly adamant about our testing to guarantee a safe and effective product. We are committed to offering the best quality products at an affordable price. All possible efforts must be made so that our formulations are available for patients with the much-needed scientific data, so that we eliminate the stigma that has haunted the plant for years.
What is Cann Farm’s strategy with regards to cultivation?
AVV Cannabis will be a great crop in Peru, so we just need to work our way into the international space. We are already in the final stage of the process for the cultivation license, and though the auditors tell us this is the first project they are evaluating, other companies might follow the same route. We know agriculture, so we are taking a cautious approach and are not promoting the hundreds of acres of cannabis in the media, as we will go low and slow. We will start with selective genetics that have already worked in foreign regions, as Peruvian regulation allows one to import directly from the US and Colombia. 2021 will be focused only on the Peruvian market, and our first year of cultivation is dedicated to working in Peru. If we do things correctly, and the international markets open up, then we have enough room in our farms to expand those licenses and grow for export.