New Mexico Medical Cannabis Sales Up 56 Percent, Patients Up 74 Percent

Producer revenues increase, while total sales significantly lag behind patient growth

(Albuquerque) – Of the 23 Licensed Non-Profit Producers (LNPPs) who were operating throughout fiscal year 2016, over two-thirds experienced double-digit revenue growth.  Four producers experienced negative growth, and three others were essentially flat during the period.

Total industry revenues from fiscal year 2015 to 2016 increased by $14.1 million, resulting in a $39 million total and a growth of 56 percent. Sales lagged behind patient growth, as patient numbers increased from 15,265 to 26,568, by 74 percent, for the same period.

“The industry is doing as much as it can to keep providing patients with the medicine they need,” said Duke Rodriguez, CEO and President of Ultra Health®. “But, it has become clear as sales significantly lag behind patient growth, there is not an adequate supply of medicine. Patients may be forced to go outside the licensed program and look to the black market for their needs.”

Currently there are 30,877 patients in the program, a 16 percent increase since June 30, 2016. Patient numbers are expected to reach 45,397 by the end of the fiscal year on June 30, 2017.

Ultra Health anticipates being ranked as the highest-grossing producer in first quarter of fiscal year 2017, with revenues reaching $1.5 million for the quarter ending on September 30, 2016. This is 30 percent higher than the top-grossing producer reported in the previous quarter.

Currently, eighteen of the previously established 23 producers are at the maximum licensed capacity of 450 plants for the period, while the other five producers average 250 licensed plants. Twelve new producers were added to the Medical Cannabis Program in December 2015. Only three of the new producers have begun serving patients, and three others have reported not having any plants in production. The remaining six are at different stages of development. In total, 25 of the 35 current producers licensed 450 plants each through July 2017.

 

Medical Cannabis Program producers' performances by peer group.
Medical Cannabis Program producers' performances by peer group.