Financial Troubles Hinder New York's Medical Marijuana Program

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ALBANY — New York’s fledgling medical marijuana program has faced its share of obstacles: tepid doctor interest, limited certified patients and a restrictive law that makes expansion difficult.

But the main factor at the center of the state’s ongoing struggle to build a sustainable medical marijuana program is this: a lack of sales.

Nearly two years since the launch of New York’s program, the state’s five medical marijuana companies have struggled to generate revenue, combining for a gross total of merely $16 million before any taxes, expenses or other overhead costs from April 2016 through August 2017, according to state tax collection data analyzed by the USA Today Network’s Albany Bureau.

STATE BY STATE: New York Cannabis News

Revenues have steadily increased in recent months, as have the number of certified patients, giving medical-marijuana boosters hope the program is heading in the right direction after the state has taken steps to expand the program.

But the still-limited sales figures have medical-marijuana companies questioning how long the state can feasibly sustain the program, particularly as the Department of Health moves to add five new companies to the mix. The existing ones are struggling to turn a profit.

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Source: Cannabis Business Times

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