One year later, the medical cannabis program in Ohio is up and running. While industry leaders are optimistic about the program’s growth and operation, patients are still critical of the state’s newest regulated business.
“This is not for the patient,” medical cannabis patient and advocate Angelica Warren told us in a September 2019 interview. “This is for big business big money and it's becoming a problem for myself and a problem for the rest of the patients”
Despite prices higher than medical market averages, patients are still buying. So far Ohioans spent $60 million dollars on medical cannabis products in the state. Warren told us back in September that some are still traveling elsewhere, which is against federal and state law, or opting for black market products.
“The patients I work with and the rest of the Advocates I work with they are very sad,” says Warren who has multiple qualifying conditions in the program. “I mean, I see people literally crying they're in pain. They need their medicine. They're having to turn back to the street because the prices are ridiculous.”
Moritz College of Law’s Drug Enforcement and Policy Center at The Ohio State University collected pilot data last year from Ohio cannabis users about the medical program. The data released in September 2019, the majority of the nearly 650 respondents were dissatisfied with the program overall, and specifically with its pricing.
The data, which was collected through online form, also indicated that a majority of those users would opt to purchase through the medical marijuana program, if the prices were comparable to other alternatives.
Comparison data compiled by the National Medical Cannabis Industry Association shows the prices, though higher than black market or recreational market averages, are on par with similar medical markets
“We've seen the price come down drastically from day one,” says NMCIA Associate Director Thomas Rosenbarger. “So, compare today to day one, prices are down about 40 percent. So it's much more affordable for patients.”
Neighboring states like Ohio, Illinois, Michigan, and Pennsylvania all have prices per ounce of flower cannabis in the $300-$400 range. patients in Ohio can purchase around 8 ounces in a 90-day period, or up to $3,200 every ninety days out of pocket.
“It's definitely true that prices have fallen in Ohio,” says Research Editor Eli McVey from Marijuana Business Daily. “Even after you know comparing the first part of the year to the latter part of the year.”
McVey. who writes about cannabis market data across the country, says the major difference in price is because of Ohio’s limited market. Prices here, he says, are three times adult use markets. In a call with us, he mentioned Colorado prices per ounce are around $90.
“There's just a lot of growers in recreational markets,” says McVey. “There's not nearly as many in a medical market like, Ohio, so I wouldn't expect prices to really get down to that 90 dollars an ounce mark.”
He does say evidence from more mature markets says prices in Ohio could continue to fall as the market grows.
“I wouldn't be surprised if we saw this fall but fall below $200 within the next year and that would put that, you know prices for medical cannabis while still high relative to recreational market prices, under $200 an ounce for medical market would be a pretty good mark,” McVey tells us.
McVey also explained that prices like in Colorado are not a given if Ohio eventually legalized adult use.
“It's hard to say we would know exactly how that recreational program would be implemented. So it's very likely that if Ohio were to recruit legalize recreational cannabis,” he says. “They would license more Growers there would be more competition and thus prices would fall lower.”
At the launch of the program, patients began with four dispensaries and only flower product. The program launch was held up as businesses came online, including a required testing facility.
Now, 48 dispensaries are operating across the state as of January 2020, and 590 doctors are certified to recommend medical cannabis.
When processing came online in April of 2019, dispensaries could offer products like edibles, tincture drops, topical lotions and ointments, and other processed cannabis products.
As more products and dispensaries became available, and more patients registered, sales began to climb, hitting $5 million dollars in April and nearly $30 million in September.
In the one year of sales, the state’s Medical Marijuana Control Program reports Ohioans have purchased $60.6 million dollars in cannabis products, that includes 7,292 of dried flower and 332,761 units of product.
In all, Ohioans have made almost half a million individual purchases under the program.
The state also reports more than 79,000 patients have been recommended for medical cannabis, and have registered for a card as of December 2019. Just under four thousand were registered at the end of 2018.
Though the numbers show growth in the market, McVey says there are still opportunities for the market to flower.
“It's going to come with your just enrolling more medical marijuana patients,” says McVey. “And we're going to see that growth really happen as more physicians begin to recommend medical marijuana, as access to dispensaries increases, as more people just come into contact with medical marijuana dispensaries or medical marijuana patients and their day-to-day lives.”
‘Slow to grow is how ohio’s medical cannabis program is generally described by the industry. but, McVey says that’s no different than other medical markets.
He does say compared to other states, Ohio is on the low end of dispensaries and certified doctors per capita. Next door in Pennsylvania, the commonwealth reported nearly 1,000 certified physicians in its first year for 116,000 registered patients. 83,000 pennsylvanians purchased medical marijuana in their first year grossing $132 million dollars in sales.
“I do think that these data points are going to tell me. ‘Hey, there is a lot of room for growth given how big Ohio is, given how big the population is, but we will need to see measures’,” says McVey.
“We will need to see Improvement on you know, the way just how people can access medical marijuana by getting more physicians out there with the ability to recommend and by getting more dispensaries out there. So people don't have to drive so far.”
Rosenbarger adds the industry is working with regulators to help make rule changes that help patients and businesses. At the end of 2020, OMCIA says they resubmitted petitions for several qualifying conditions previously rejected by the board.
“I think, you know, a lot of patients and you know industry members and physicians, we're incredibly disappointed in those decisions because there is a lot of scientific evidence,” he says, in reference to conditions such as Anxiety, Depression and Opioid Use disorder which have not been added to the qualifying conditions list.
“I mean, if you if you go look at these petitions that have been submitted. I mean, there's hundreds of pages of studies and then experiences from for patients out of state with medical marijuana indicate that it is effective,” Rosenbarger added.
2020 could prove a banner year for the program, but just how much depends on the changes to come over the next several months. Adding new qualifying conditions could grant access to thousands of more patients in Ohio.
And, possible program rule updates could remove the cap on the number of dispensaries allowing the count to grow based on patient need.
The state Medical Board is expected to determine which recently submitted petitions will be considered at an upcoming board meeting.