The state’s only current medical marijuana grower announces it will lower its prices as a result of a new law greatly expanding access to the treatment.
Wellcana CEO John Davis says the price reductions will allow pharmacies to sell the product at the average price for the nation’s more mature markets.
“Louisiana is not a mature market we are far from it yet, but we are trying to put our pricing in line with all of the mature markets that have taken five to seven years to get where our pricing is,” says Davis.
Currently, patients have to pay hundreds of dollars a month to afford their medical marijuana prescriptions. Medical marijuana is not covered by health insurance because it’s still illegal under federal law.
Davis says the price reduction will hit their bottom line, but they believe by lowering the price they can significantly expand the market.
“It is a sustainable model for the short term but we do need to increase patient access, make sure these products are affordable and that will help increase the patient count,” says Davis.
In addition to lowering the price, Wellcana will soon begin offering a concentrated product that can be blended into food and drinks.
Davis says the soon-to-be law makes up to three million adults potential customers.
“Since the law authorizes any licensed doctor to recommend medical marijuana for any patient, for any condition, it essentially opens up all citizens of Louisiana to be potential patients,” says Davis.
The law expanding access goes into effect on August 1st.
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