Medical Cannabis Draws US$24 Million for Q1 2018 in New Mexico

New data shows the state of New Mexico earned US$24.1 million in revenue from medical cannabis during the first quarter of 2018, a 27-percent increase from the same period last year.

Ultra Health, a dispensary operator in the US market, issued a report on the performance of patient revenues from the New Mexico Medical Cannabis Program in the state.

According to the information presented by Ultra Health, retail sales averaged US$689,298 per producer for the quarter, while the median amounted to US$419,945.

Patient population continued to increase as well, with 4,300 new patients added during Q1 2018. As of March 31, patient enrolment in New Mexico had reached 50,954 active legal cannabis users.

“As the decade-old New Mexico Medical Cannabis Program matures, the leading competitors are strengthening market share which likely will accelerate consolidation in the industry,” Ultra Health wrote.

State working towards complete legalization

New Mexico has had a medical cannabis bill since 2007. The state is now preparing to completely legalize the drug by asking state voters to decide on the issue.

“Marijuana prohibition in New Mexico has clearly failed,” said Emily Kaltenbach, New Mexico state director with the Drug Policy Alliance, after the bill to tax and regulate the drug passed the Senate Rules Committee in the state.

“It hasn’t reduced use and instead has resulted in mass criminalization, appalling racial disparities, and enormous fiscal waste,” Kaltenbach added.

The data from Ultra Health indicates the top five producers of cannabis in the state secured 44 percent of patient sales during this past quarter. Ultra Health states that the largest retail product remains cannabis flower, with a reported 3,427 pounds sold during the first quarter of 2018.

The report also includes a cannabis market development projection for New Mexico, with a calculation of over US$105 million in revenue for 2018 thanks to a patient count of 65,000 by the end of the year.

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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.