Cheaper Medical Pot in Minnesota? Cannabis Companies Say It’s on the Way

Patients participating in Minnesota’s medical cannabis program will soon have the option to purchase the plant in a dried, smokable form. This is the result of a major change approved by Minnesota legislature on the last day of the 2021 legislature.

The two state-owned medical cannabis manufacturers – Vireo Health and LeafLine Labs – say the change will significantly lower the cost of the program, which has long been criticized as more expensive than other states’ programs.

“Patients can get the same amount of drug in flower form for potentially half the price,” said Dr. Kyle Kingsley, an emergency physician who now serves as Vireo’s CEO. “It’s just less processing. It is the simplest form of this medication for people. This is the main driver for reducing costs. “

Minnesota’s current program only allows the sale of cannabis in oil, liquids, or pills. The change was approved by Minnesota House and the Senate, but still requires the governor’s signature. Governor Tim Walz is expected to sign the bill.

Kingsley believes the change will result in further cost reductions in the future. As more people join the program, manufacturers will benefit from economies of scale, he said.

The change would take effect in March 2022, or as soon as the state’s two manufacturers develop a method for testing dried forms of the facility. Kingsley said his company had been preparing for this a long time. Vireo will spend the next six months putting the right testing processes in place, he said.

“Adding flowers as a shipping method is critical to breaking down the costly barrier associated with an extract-only market,” said Scott Schilling, CEO of LeafLine Labs, in an email. “With flowers, there are no additional costs for extraction, formulation, or the number of other steps involved in processing plant material. This is mutually beneficial for the manufacturer and patient. “

Minnesota was one of the few states that banned the sale of dried cannabis for medical patients, Schilling said. “It is an exciting and historic time for medical cannabis in Minnesota,” he said.

Could the change get more cannabis companies gaining a foothold in Minnesota? Well, probably not. Or at least not right away. As currently written, the state’s existing cannabis law prevents other manufacturers from obtaining a license. Besides, the demand isn’t quite there yet, said Kingsley.

“At the moment we are very limited in demand in the state,” he said. “Right now there aren’t even enough patients to support two operators. Both operators continue to lose money. “

But the addition of dried cannabis could change things. Vireo is also licensed for the sale of cannabis in Arizona, Maryland, New Mexico, and New York. In other states with established programs, dried forms of the plant are the “preferred product,” Kingsley said.

“Most of our sales in every other state are flowers,” he said. “Part of that is the price; it’s much cheaper. “

Changes to Minnesota’s medical marijuana program inevitably lead to questions about the legalization of recreational activities in the state. Is it time Kingsley said he generally supported it, but in his view, adult usage in general is an “entirely different debate”.

“I’m generally a fan of giving people access to what I see. This is a plant that has many advantages and not many disadvantages like we see other recreational substances,” he said.

LeafLines Schilling had a similar attitude.

“Any effect recreational cannabis would have on our medical program should be positive in the form of a wider range of more affordable products,” said Schilling.

In April 2020, TCB conducted in-depth Q&A with Kingsley from Vireo.