Business
Canadian medical cannabis companies look to benefits-covered patients for growth
In the context of a shrinking medical marijuana market, some Canadian companies are focusing on selling medical cannabis to patients whose purchases are covered by employee health benefit plans, citing improved customer retention and consistency.
Major licensed producer Aurora Cannabis and several other players have adopted a benefits-focused medical strategy, which comes as prices have fallen in Canada’s fragmented, competitive recreational marijuana market.
Although the benefits-focused strategy suggests an avenue for higher-margin growth in maturing medical marijuana markets, cannabis companies say serving benefits-covered clients comes with high costs for education, customer service and research.
Plus, adoption of medical cannabis benefit coverage has been relatively low in the grand scheme of Canada’s health industry, according to Canadian employee benefits expert Mike Sullivan.
Before adult-use legalization in October 2018, Sullivan expected benefits coverage for medical cannabis would become “an enormous area for these self-insured (benefits) plans.”
That prediction didn’t pan out.
“It’s almost like tumbleweeds,” said Sullivan, CEO of Toronto-based employee benefits consultancy Cubic Health.
“There are very, very few of these plans that have moved ahead with medical cannabis coverage.”
Medical cannabis benefits strategies
Alberta-based Aurora Cannabis has refocused its business on medical marijuana, with a particular reliance on insured consumers whose benefits cover MMJ.
The company has a leading Canadian medical cannabis market share of 24%, CEO Miguel Martin told MJBizDaily.
Aurora says sales to “insured patient groups” accounted for about 80% of the company’s 23.4 million Canadian dollars ($17.4 million) in Canadian medical cannabis net revenue in its first quarter.
“Those that are in an insured program, by their very definition, buy more consistently, stay with similar pieces of medication for longer periods of time,” Martin said.
“… The noninsured patients do appear to have a little bit of a smaller basket size, a little less interaction, and to be a little more variable.”
Privately held Nova Scotia cannabis producer Aqualitas told MJBizDaily about 75% of its medical sales are covered by insurance.
George Scorsis, CEO of Ontario cannabis company Entourage Health (formerly WeedMD) said about 90% of the company’s medical cannabis clients are covered by insurance benefits.
Entourage, which is phasing out its cultivation business, reported medical cannabis net revenue of about CA$3.1 million in its most recent quarter.
The company’s medical cannabis strategy is anchored by a partnership with the Laborers’ International Union of North America (LIUNA), whose Canadian pension fund owns more than 30% of Entourage’s equity and is also a major lender to the company.
Scorsis said LIUNA locals offer dedicated medical cannabis benefits with coverage of CA$1,000 to CA$2,500 annually.
He also said Entourage’s Starseed Medicinal medical marijuana platform has relationships with other construction and trade unions whose benefit plans cover MMJ, arguing that focusing on selling medical cannabis to laborers makes sense as a safer pain treatment alternative in light of the opioid drug crisis.
Entourage puts patients “on a proper treatment plan, which is X amount of dose, X amount of times a day, of a certain product,” Scorsis said.
“So the stickiness of them, and retaining them within our model, is significantly higher. … They’re consistent with our brand throughout the entire journey from education all the way to the end of treatment and don’t leave our portfolio for a multitude of reasons.”
However, Scorsis said profit margins on medical cannabis aren’t necessarily higher than for adult use, even though medical marijuana doesn’t involve the “wholesale middleman” common in Canada’s provincial adult-use cannabis markets.
Entourage absorbs the costs of educating patients and physicians as well as patient call centers, reducing medical cannabis margins.
“Just to give you an example, we go to actual union halls and spend days (discussing) cannabis as a medical alternative,” Scorsis said.
Aurora CEO Martin said medical marijuana margins, on average, are roughly twice that of recreational cannabis.
But, like Scorsis, Martin said that margin advantage is offset by significant costs.
“Everything from the clinical work, the filings, the product development, the packaging, the testing, (to) all of the call center stuff is very, very expensive,” he said.
“And so there’s puts and takes to the business model, and I don’t think margin, in isolation, is the right way to look at the health of the business.”
Who has cannabis benefits?
Canada’s medical cannabis market was worth CA$93 million in the third quarter of this year, according to Statistics Canada, implying a CA$372 million annualized run rate.
Military veterans appear to represent Canada’s most significant group of benefits-covered medical marijuana patients: The Department of Veterans Affairs forecasts spending CA$195.2 million on cannabis reimbursements in its 2022-23 fiscal year.
In terms of private-sector cannabis benefits coverage, no one knows exactly how many Canadians are covered, according to benefits insider Sullivan.
Employee benefits plans fall into two main categories, Sullivan explained:
- Self-insured, or self-funded, plans in which employers underwrite their own benefit costs. These plans tend to be used by larger employers.
- Fully insured plans put the risk of coverage on the insurer and tend to be used by smaller companies.
Sullivan added that some benefits plans might also cover medical cannabis through employees’ health care spending accounts, but the annual spending caps for those accounts tend to be relatively small.
In comparison, open cannabis benefit coverage would treat medical marijuana “the same way as a prescription drug, where, if it’s approved, you can have coverage up to thousands of dollars a year, or potentially unlimited,” Sullivan said.
“There are very, very, very few plans that have that.”
Sullivan knows of no fully insured Canadian benefits plans that cover medical cannabis as an open benefit off the shelf, meaning cannabis coverage wouldn’t be a default benefit option for employers who use those plans.
However, he has seen employers choose to add medical cannabis coverage on top of fully insured plans – albeit with a requirement for “some form of prior authorization” or review.
Although medical cannabis market leader Aurora said it earned roughly CA$18.7 million in medical marijuana net revenue from benefits-covered patients in its previous quarter, Sullivan sees that quarterly total as a drop in the bucket in the context of the overall benefits market.
“There’s CA$15 billion-plus a year paid by benefit plans for prescription drugs,” he said.
Growing the benefits-covered medical cannabis market
Ned Pojskic is vice president of pharmacy benefits management at not-for-profit benefits provider Green Shield Canada, Canada’s fourth-largest benefits company.
Like benefits consultant Sullivan, Pojskic said early interest in benefits coverage of medical cannabis failed to lead to broad coverage.
In recent years, Pojskic said, human resources leaders and other benefits decision-makers have been focused on other problems such as rising drug costs, issues surrounding the COVID-19 pandemic as well as diversity, equity and inclusion efforts.
In the meantime, he said, “the maturity of the evidence on medical cannabis simply hasn’t grown” – and that evidence base would need to be stronger to justify increased benefits plan coverage of medical cannabis.
“I haven’t seen a single multisite, randomized, controlled trial emerge that has demonstrated the safety and efficacy of medical cannabis. … In the benefits-plan industry, we’re very much focused on the evidence, because we have these massive dossiers of clinical trials and information we receive from pharmaceutical companies to make decisions around coverage of their drug.”
Benefits expert Sullivan said that after adult-use legalization in 2018, Canadian cannabis companies lost their focus on medical marijuana.
“If you want to go after that market, and if you want to add value to that market, you have to dedicate time and effort and resources to understanding it,” he said.
Green Shield’s Pojskic said convincing the benefits sector to embrace medical marijuana would require the cannabis industry “to reengage the (benefits) industry anew on that.”
“Because they engaged the industry in 2017, 2018, 2019, but in a way, that clearly demonstrated their lack of preparedness to do so,” he said.
“They brought some doctors who were basically working for the cannabis industry, they brought others, but it was clearly unconvincing to our industry that what they were selling was good enough to buy.”
Aurora’s Martin agreed with Pojskic that more high-quality research could help increase the benefits industry’s acceptance of medical cannabis.
But he expressed optimism that such research is underway.
“You’re seeing it in key markets with key universities, and a variety of different agencies,” said Martin, citing the success of plant-derived cannabinoid medication Epidiolex in clearing regulatory hurdles.
“So, it absolutely can be done.”
Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).
The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.
India’s Indigenous LEO Satellite Vision
Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.
The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.
According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.
The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.
Regulatory Process Moves Forward
Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.
The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.
Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.
Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.
Broadband, Mobile Connectivity, and Strategic Applications
Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.
The company also intends to establish 20 to 22 ground stations across India to support network operations.
Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.
Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.
Major Step for India’s Space and Telecom Sectors
Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.
The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.
After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.
Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.
Fake Business Deals and Dishonoured Cheques Used in Fraud
Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.
In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”
Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.
Multiple Identities and Repeated Fraud Pattern
Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.
Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.
Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.
Multi-State Surveillance Leads to Arrest in Surat
A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.
Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.
Growing Threat of Corporate Identity Fraud
The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.
Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.
Experts Urge Stronger Due Diligence in High-Value Transactions
Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.
Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.
Investigation Under Digital Markets Act Gains Momentum
The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.
Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.
Industry Groups Demand Swift Action
Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.
Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.
In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.
Google Denies Allegations
Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.
However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.
Potential Billion-Euro Penalties
If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.
Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.
Wider Implications for Big Tech
The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.
A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.
As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.
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