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Records: Minnesota's medical marijuana companies lost a combined $2.4M in 2018

June 03, 2019 10:14 PM

5 EYEWITNESS NEWS obtained new financial records for the two licensed medical marijuana companies in Minnesota, which show they lost a combined $2.4 million in 2018.

Financial reports supplied to the Minnesota Department of Health show Minnesota Medical Solutions had a net income loss of $610,000 while LeafLine Labs' net income loss totaled $1.8 million.

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Therese Kaun told KSTP that her son was born without shoulder muscles and has scoliosis. She said he relies on medicinal marijuana to manage his intractable pain.

"So, hearing the companies are still losing money heading into 2019 is concerning," said Kaun. "It is very concerning because it is hard to imagine how they can continue to keep their doors open if they are losing money like that."

Kaun said the high costs of prescriptions for the oils extracted from the marijuana plants are also a big worry because the two marijuana retailers, in her opinion, will have a hard time keeping costs down for patients if they cannot make a profit.

"Right now, my son's prescription is in the five to 600 dollars per month, but we can only afford a portion of the prescription each month."


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State Representative Rod Hamilton, (R-Mountain Lake), is a registered participant in the state's medicinal marijuana program and supports using other options to help bring costs down.

"I think using the marijuana flower as an option to the more expensive oils could be huge," said Hamilton. "Other states have introduced the flower option and they have seen costs go down by almost half."

Minnesota Medical Solutions issued a statement which said, in part, "we are a viable company and will continue to operate our manufacturing facilities," while also pointing out the company's sales had nearly doubled from 2017 to 2018.

LeafLine Labs also issued a statement which said, in part, the company saw a strong ending in the latter part of 2018 and net profits through April 2019 total $222,000.

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Credits

Jay Kolls

Copyright 2019 - KSTP-TV, LLC A Hubbard Broadcasting Company

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