Tilray Medical's Strategic Expansion into Panama: A Gateway to Latin America's Booming Cannabis Market

In October 2025, Tilray Medical made a bold move into Panama through a joint venture with Top Tech Global Inc., forming Solana Life Group. This partnership, which secured a medical cannabis license from Panama's National Directorate of Pharmacy and Drugs, authorizes the cultivation, manufacturing, import, export, distribution, and sale of medical cannabis products, according to Tilray's press release (https://ir.tilray.com/news-releases/news-release-details/tilray-medical-announces-expansion-plans-panama-strengthening). The expansion underscores Tilray's ambition to solidify its position as a global leader in medical cannabis while tapping into Latin America's rapidly evolving market. With Panama's regulatory framework maturing and regional demand for cannabinoid-based therapies surging, this move positions Tilray to capitalize on a market projected to grow from USD 1.9 billion in 2025 to USD 10.52 billion by 2033 (a Straits Research report).

Panama: A Regulatory Pioneer in Central America

Panama became the first Central American country to legalize medical cannabis under Law 242 in October 2021, establishing a regulated framework for therapeutic use, according to a Limitless Legal guide (https://www.limitlesslegal.com/en-us/blog/cannabis-regulation-in-panama). The law allows access to cannabis-based treatments for conditions such as chronic pain, epilepsy, and terminal illnesses, while strict regulations govern production and distribution to ensure quality and safety, as explained in a Legal Clarity explainer (https://legalclarity.org/is-cannabis-legal-in-panama-what-you-need-to-know/). By 2025, the government had refined these regulations, streamlining licensing processes and granting permits to companies like Green Med, Tilray Panama, and Farma Verde Corp., according to a Newsroom Panama report (https://newsroompanama.com/2025/02/04/panamas-changes-to-cannabis-regulations-are-in-the-final-stretch/).

The Panamanian Ministry of Health (MINSA) oversees patient registration, physician certification, and importation, ensuring a controlled yet accessible supply chain, per the Canna Law Blog (https://harris-sliwoski.com/cannalawblog/panama-issues-medical-cannabis-regs/). Recent amendments, including Decree No. 6, have expanded physician prescribing rights and clarified consumption limitations, such as banning public use and vaporizers, in a Benzinga report (https://www.benzinga.com/markets/cannabis/25/04/44747982/one-step-forward-one-step-back-panama-regulates-cannabis-italy-bans-it). Despite these strides, domestic cultivation and manufacturing remain limited, creating opportunities for international players like Tilray to fill gaps in supply and infrastructure, as highlighted in a Newsroom Panama piece on strains and cultivation (https://newsroompanama.com/2025/07/03/top-medical-cannabis-strains-for-panamas-tropical-climate/).

Strategic Partnerships and Market Access

Tilray's collaboration with Top Tech Global Inc. exemplifies a strategic alignment of global expertise and local knowledge. Top Tech, with its 10-year history in medical device distribution, provides critical on-the-ground logistics, while Tilray brings its GMP-certified production capabilities and global portfolio of cannabinoid therapies. This synergy enables Solana Life Group to address Panama's current reliance on imported cannabis products, which drives up costs and delays patient access, as analyzed by Newsroom Panama (https://newsroompanama.com/2025/05/30/medical-cannabis-in-panama-the-challenge-of-implementation/).

The joint venture also aligns with Panama's broader economic goals. The country's tropical climate necessitates the cultivation of resilient strains like CBD-rich Charlotte's Angel and Solomatic CBD, which are tailored to local conditions, according to a BizLatinhub overview (https://www.bizlatinhub.com/understanding-latin-american-cannabis-sector/). By investing in domestic production, Tilray not only enhances Panama's medical cannabis ecosystem but also positions itself as a regional supplier. Panama's strategic location-anchored by the Colon Free Trade Zone-further amplifies its potential as a logistics hub for exporting medical cannabis across Latin America, as noted by the CFA Institute blog (https://blogs.cfainstitute.org/investor/2024/03/20/the-evolving-international-cannabis-landscape/).

Regional Growth and Investment Potential

The Latin American medical cannabis market is poised for exponential growth, driven by regulatory liberalization and rising demand for alternative therapies. Countries like Uruguay, Argentina, and Brazil have already made significant strides, with Brazil's market value surging by 92% between 2022 and 2023, according to a Mobility Foresights report (https://mobilityforesights.com/product/latin-america-legal-cannabis-market). Panama's entry into this landscape is timely, as its regulatory clarity and infrastructure investments attract foreign capital.

Government initiatives, including Law 464 of 2025, which regulates industrial hemp (defined as cannabis with ≤1% THC), further diversify Panama's cannabis economy (as noted by Legal Clarity). The Ministry of Commerce and Industries oversees hemp production, opening avenues for exports and value-added products. These policies, combined with tax incentives for medical cannabis enterprises, create a favorable environment for long-term investment, according to Panama Life Hub (https://panamalifehub.com/finance-in-panama2/panama-new-government-policies-2025/).

Risks and Considerations

While the outlook is optimistic, challenges persist. Panama's reliance on imports and limited domestic production capacity could hinder scalability in the short term, a concern previously flagged by Benzinga. Regulatory enforcement also varies, with potential delays in licensing and compliance. Additionally, public perception of cannabis remains cautious, requiring sustained education efforts to normalize medical use, as outlined in the Chambers guide on medical cannabis regulation (https://practiceguides.chambers.com/practice-guides/medical-cannabis-cannabinoid-regulation-2025/panama).

For investors, these risks are mitigated by Tilray's established reputation, its commitment to quality control, and Panama's proactive regulatory evolution. The company's emphasis on collaboration with healthcare professionals and patient advocacy groups further strengthens its market penetration strategy, as detailed in Tilray's press release.

Conclusion

Tilray Medical's expansion into Panama is a masterstroke in its global strategy, leveraging Panama's regulatory progress, strategic location, and regional growth potential. As Latin America's medical cannabis market accelerates, Panama's role as a gateway-facilitated by Solana Life Group's operations-positions Tilray to capture a significant share of this USD 10.52 billion opportunity by 2033 (as projected in the Straits Research data). For investors, this move represents not just a bet on a single market, but a calculated play on the broader transformation of healthcare across the region.