Minnesota’s two licensed medical marijuana manufacturers each posted millions of dollars in losses in their first full year of operations, according to financial documents obtained by The Associated Press.
Minnesota Medical Solutions posted a $3 million loss in 2015, a period that included the rush to build up facilities, grow and cultivate medicine and the first six months of legal medical marijuana sales. The company also said it lost more than $542,000 in 2014.
Meanwhile, LeafLine Labs lost roughly $2.2 million in 2015. Their audit does not include information from 2014. The AP obtained copies of the documents through an open records request.
The heavy losses illustrate the financial difficulty of running a medical marijuana business in Minnesota’s tightly regulated structure and confirm some fears among patient advocates that the restrictive program can’t survive long-term. Minnesota’s program is only open to patients with 10 severe conditions, and using the plant form is banned. Intractable pain, a qualifying condition that supporters think will greatly broaden the customer base, was only recently added. [Read more at MPR News]