Despite high license fees, low plant count and delayed patient cards, may hit $48 million for year

(Albuquerque) – The Medical Cannabis Program’s total patient revenues for the first six months ended June 30, 2016 exceeded $21.8 million, representing a whopping 67 percent increase over the same period in 2015. The medical cannabis industry is on pace for a record setting year of $48.4 million.

Four providers, including Ultra Health®, had patient sales over $1 million in the second quarter alone, which is an industry first. The top 10 providers account for nearly three-­quarters of total medical cannabis six month revenues in New Mexico. Ultra Health® was the top gainer for the second quarter with revenues up by 58.2 percent.

Funding for the program is wholly derived from patient sales and receives no additional state funding. The rural communities remain the most underserved. Ultra Health has submitted 14 amendments for new markets including smaller communities not currently served by a full time dispensary such as Alamogordo, Grants, Carlsbad, Truth or Consequences, Socorro, Clovis, Sunland Park, Silver City, the unincorporated area of Albuquerque’s South Valley and Deming. The New Mexico Department of Health (NMDOH) has yet to approve or deny the amendment requests.

According to Duke Rodriguez, CEO and President of Ultra Health®, LLC, “The New Mexico medical cannabis program continues to grow rapidly even with delays in patients receiving their cards, the highest license fees in the country and the lowest allowed plant count for cultivation.” Rodriguez stated, “A huge challenge for the New Mexico cannabis industry going forward will be in meeting patient expectations of availability, affordability and quality, especially with continued enrollment problems and low reported inventories.”

NEW MEXICO:
Effective August 1, 2016, the NMDOH renewed licenses for 35 Licensed Non­Profit Producers (LNPPs), who paid up to $90,000 in fees each for the maximum 450 medical cannabis plants. As of July 31, 2016, there are a total of 27,980 active medical cannabis cards issued to patients, 6,033 of which hold Personal Production Licenses (PPLs). PPL holders must pay a $30 annual fee for a maximum of 16 plants. The New Mexico Medical Cannabis Program has grown 72 percent in the past year. Due to the NMDOH failing to process 38 percent of the 2,700 applications submitted each month, the program is estimated to actually have grown by 78 percent in the last year and now represents 30,000 patients.

REGIONAL:
In comparison, Colorado has authorized 801 state-­approved medical cannabis cultivation facilities as of August 1, 2016, who pay a renewal fee of up to $13,800 annually for 6 plants per patient. Producers are utilizing approximately 50 percent of the allowed medical plants. As of May 31, 2016, there were 106,066 medical cannabis patients in the state. All Colorado residents are constitutionally allowed to cultivate six plants per adult and 12 per household.

Similarly, there are 79 Arizona state-­approved medical cannabis cultivation sites as of August 8, 2016, who pay up to $1,000 in fees annually for an unlimited number of medical cannabis plants. As of April 30, 2016, there were 97,938 patients in the state, 1,391 of which are allowed to cultivate at home. Home cultivation is only permitted for homes outside a 25 mile radius of an operating dispensary. Home cultivators must pay a $150 annual fee for their patient cards and are allowed to cultivate 12 plants.

Nevada has 55 state­-approved medical cannabis cultivation facilities as of August 3, 2016, who pay up to $5,000 in fees annually for an unlimited number of medical cannabis plants. As of August 9, 2016, there were 21,051 medical cannabis patients. Home cultivation is permitted to patients who live in counties where dispensaries are closed, patients who are unable to travel to a dispensary, or patients who live 25 miles or more from an operating dispensary when they first applied for their card. Home cultivators must pay a $100 annual fee for their medical cannabis patient cards and may cultivate 12 plants.

NATIONAL: Cannabis ballot initiatives are scheduled in eight states including adult-­use legalization votes in California, Nevada, Arizona, Maine, and Massachusetts. Medical cannabis approval votes will be taken in Florida, Arkansas, and Missouri.

Quinnipiac University National poll published June 6, 2016 found that 89 percent of United States voters approve of the medicinal use of cannabis with a prescription from a doctor, and 54 percent support legal recreational cannabis use.

PRESENTATION:
Mr. Rodriguez is scheduled to present to the N.M. Legislative Health and Human Services Committee, on Monday August 22nd, 2016, beginning at 1:00 p.m. The meeting will be devoted to the topic of medical cannabis. The meeting will be at the Taos County Commission Chambers, 105 Albright Road, Taos. Link to agenda and directions to meeting location: https://www.nmlegis.gov/Committee/Interim_Committee?CommitteeCode=LHHS