California-based Medical Marijuana eyes Mexico as next big market

Medical Marijuana

02/02/2016 17:13

By Natalie Grover 
    Feb 2 (Reuters) - Medical Marijuana Inc  MJNA.PK , a pioneer 
in the industrial hemp business, is betting on Mexico as its 
next big market as the country opens up to the import of some 
cannabis-derived products for medical use. 
    The California-based company manufactures a hemp oil which 
can, under permits granted this week, be imported to Mexico for 
the first time to treat specific medical cases. It already 
supplies a similar product to Brazil. 
    Stuart Titus, Medical Marijuana's chief executive, said 
Mexico represented a "$1 billion to $2 billion opportunity" in 
terms of cumulative revenue over the next 10 years. 
    Many companies in the legal cannabis business are 
considering a bet on Mexico after a Supreme Court decision in 
November opened the door for the eventual legalization of 
recreational marijuana.  urn:newsml:reuters.com:*:nL1N1462NV 
    Just days after this decision, a ruling party senator 
proposed a bill to allow the import of medical marijuana 
products to help the roughly 5,000 patients without access to 
such drugs. This bill could be approved by May.  urn:newsml:reuters.com:*:nL2N1551HQ 
    Medical Marijuana, a company controlled by private equity 
firm General Hemp LLC, will be able to import its Real 
Scientific Hemp Oil, or RSHO-X, before then. 
    On Monday, Mexico's health ministry and Cofepris, the health 
regulator, authorized imports of the product for the specific 
use of two patients, in both cases young, female epilepsy 
sufferers. 
    The permits are the first to be granted by the government 
bodies, although a judge last year sanctioned the import of a 
similar product for a third girl, said Andres Aguinaco, a lawyer 
representing the two girls named in Monday's announcement. 
    Imports are restricted to products free of 
tetrahydrocannabinol (THC), the ingredient in marijuana that 
gets you 'high'. RSHO-X contains cannabidiol, the 
non-psychoactive component of the plant. 
    In Brazil, Medical Marijuana's hemp oil is also imported on 
a case-by-case basis for the treatment of chronic pain and the 
symptoms of epilepsy and Parkinson's disease. 
    "We do expect Mexico to be similar to Brazil, in that it 
will require a doctor's prescription," said Titus, adding that 
he expected more permits to follow. 
    With a population of 120 million people, Mexico could 
eventually provide a sizeable market for marijuana investors. 
    By way of comparison, the U.S. legal pot market was worth 
some $3.5 billion in 2015, according to marijuana investment and 
research firm ArcView Group. A federal U.S. legalization of 
marijuana would create a market worth $36.8 billion, it said. 
 
 (Reporting by Natalie Grover in Bengaluru; Editing by Robin 
Paxton) 
 ((natalie.grover@thomsonreuters.com; within U.S. +1 646 223 
8780, outside U.S. +91 99 1694 7070; Reuters Messaging: 
natalie.grover.thomsonreuters.com@reuters.net)) 
 
Keywords: MEDICAL CANNABIS/MEXICO