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The Future of Cannabis is Here: Dragonfly RAD

In a nondescript building in an industrial section of South Salt Lake, there’s a big bag of weed labeled Blue Dream — several bags, actually — stored in large Igloo coolers in a chilly room called the vault.

Meticulously cultivated on a former turkey farm in Sanpete County, the hand-trimmed marijuana buds will be machine-dropped into pouches containing 3.5 grams of the classic cannabis strain. A courier will deliver the packets to the Dragonfly Wellness pharmacy in Salt Lake City to be sold under its Betty label for $38 a pop.

Known to have powerful uplifting effects that can reduce pain and enhance the appetite, Blue Dream has a fruity taste with hints of cinnamon and pine, according to the Dragonfly website. It contains 18.25% tetrahydrocannabinol or THC, the major psychoactive component in cannabis, and 20.26% of THCA, the most abundant nonpsychoactive cannabinoid found in the plant.

One of Utah’s nearly 72,000 medical cannabis cardholders will eventually buy the pouch of flower and — if used legally under Utah law — grind it into a dry herb vaporizer to inhale as a treatment for pain, inflammation or depression. The state prohibits using an open flame to heat marijuana to smoke medicinally or recreationally.

Though it’s not widely promoted, the Beehive State has a growing medical cannabis industry. Dragonfly Wellness opened the 

 three years ago this past March. Its seed-to-sale operation includes the grow farm in Sanpete County and the processing plant in South Salt Lake.

Dragonfly chief operating officer Narith Panh runs into people all the time who have no idea cannabis gummies, flower, tinctures, capsules, concentrates, topicals and vape cartridges are legally sold in the state.

“It’s kind of like this fight club,” he said. “Nobody wants to talk about it, nobody wants to report on it. It’s kind of this sticky subject. Only people who are actually in the program know about the challenges and the opportunities out there.”

Conservative Utah figured to be the last state to legalize marijuana in any form.

The Republican-controlled state Legislature approved the use of CBD oil to treat people with epilepsy in 2014, but a GOP senator’s subsequent attempts to extend the use of cannabis to other health conditions failed over the next two years. Proponents launched an initiative to get medical cannabis on the 2018 election ballot, where it faced 

 from the Utah Medical Association, Salt Lake Chamber, Utah Episcopal Diocese, The Church of Jesus Christ of Latter-day Saints and law enforcement.

 managed to pass but Republican legislative leaders had signaled their intent to rewrite the law. In the months prior to the election, the Utah Patients Coalition and the Libertas Institute, both of which backed Prop 2, began conversations with GOP legislative leaders, the medical association and church representatives, among others. They negotiated a bill the Legislature 

 in special session soon after the public vote. 

After the contentious years-long public debate, Utah’s budding medical cannabis program seemed to go underground after finally getting off the ground in 2020.

What has happened since? Do Utahns see cannabis as legitimate medicine? Who uses it and why? Could it lead to legal recreational use?

Many in the medical cannabis community say the 4-year-old program serves residents well, but could improve.

“Every year, we’re running into issues and we’re trying to fix them,” said Desiree Hennessy, executive director of the Utah Patients Coalition, which helped drive the ballot initiative.

Patients say costs are high for the products and for state-required visits with medical providers in a mostly cash business. Some products aren’t readily available, forcing customers to pharmacy hop, look to the black market or go out of state. Critics find the state regulations and licensing fees too onerous, making medical cannabis a tough business to run when combined with limited access to financing and no tax write-offs, since marijuana remains illegal under federal law.

And fear persists that medical marijuana in Utah could lead to legalized recreational use, despite no organized movement in that direction.

“My thought process has always been, and those that I’ve worked with in this space, is that if we have the very best medical program that we can have, we feel like that can prevent the need for recreational,” said Utah Senate Majority Leader Evan Vickers, R-Cedar City, a pharmacist by profession and a leader in establishing the state’s medical cannabis program.

Colorado is one of four bordering states, along with Arizona, Nevada and New Mexico, where recreational marijuana is legal — and where medicinal cannabis has become lost because dispensaries cater to that crowd, something Utah is trying to avoid.

“We don’t want to get to that point where the medical patients are being put in the backseat because we’re pushing so hard to allow for adult use, which I don’t know if that will ever happen here,” said Alyssa Smailes, executive director of the Utah Cannabis Association, one of two industry trade groups in the state.

A Deseret News/Hinckley Institute of Politics poll found nearly 4 in 10 Utahns are concerned medical cannabis could lead to legal recreational use, while about 6 in 10 do not share that concern.

The survey of 800 registered Utah voters conducted in April also found 40% believe marijuana should be legal for both recreational and medical use, while 51% say it should be medical only.

Overall medical cannabis sales in Utah totaled $118.7 million in 2022, a 59% increase over the previous year, according to data published by the Utah Department of Health and Human Services. Sales for the first six months of this year are $68.5 million. The state rakes $3 off every pharmacy transaction. Last year that came to $2.4 million. Utah took in $4.7 million last year, including pharmacy licensing fees and patient card fees.

By comparison, medical cannabis sales in neighboring Colorado topped $230 million last year, according to the Colorado Department of Revenue. But it’s a drop in the bucket in a state where the combined legal medical and recreational marijuana retail sales reached nearly $1.8 billion in 2022.

Utah is among 38 states where medical marijuana is legal. Twenty-two states also allow recreational use. Roughly three-quarters of the U.S. population lives near a medical marijuana program. Federal law prohibits the use of whole-plant cannabis or its derivatives for any purpose. But CBD derived from the hemp plant (less than 0.3% THC) is legal.

State officials have reported almost no serious crime associated with medical cannabis in Utah. Some teenagers hopped the fence and stole a single plant from a farm. They were caught when they tried to sell it to an undercover officer.

Utah’s medical cannabis program is one of the more restrictive in the country compared to other medical-only states such as Florida, Pennsylvania and Ohio.

Two government agencies oversee the cultivation, processing and sale of cannabis in the state. The Utah Department of Agriculture and Food runs the Utah Medical Cannabis Program and the Utah Department of Health and Human Services manages the Center for Medical Cannabis.

All cannabis sold as medicine in the state must be grown and processed in Utah.

Dragonfly Wellness has one of the eight cultivating licenses allowed under state law. It bought 60 acres in Sanpete County, where it has a 50,000-square-foot indoor, climate-controlled greenhouse where thousands of plants thrive under high-intensity LED lights. Smaller greenhouses are under construction and a two-acre solar panel is coming online. A chain-link fence topped with barbed wire surrounds the facility. Security guards patrol at night.

All the plants, which under state law must be individually tagged, are clones from mother plants to maintain genetics unique to the various strains of cannabis. Hundreds of ladybugs alight on the supple petals to control pests on the pesticide-free farm. It takes about 15 weeks for plants to flower.

Cody Henderson, Dragonfly director of cultivation, says the company aims to be a “boutique” grower. For him, cannabis is more than a medicine.

“I love the plant. I love it probably like an orchid breeder loves orchids just because there’s so much genetic variation. It’s one of the most hybridized plants on the planet at this point. It’s been crossbred a million times,” he says, reveling in the various canopies, colors and aromas cannabis plants produce.

In 2022, the eight farms in Utah, totaling nearly 280,000 square feet of indoor space and five acres of outdoor space in 12 locations across seven counties, produced 111,800 pounds of biomass and supplied 13 facilities that manufacture, package and label cannabis products.

There are 15 licensed cannabis pharmacies in the state, mostly along the Wasatch Front. Each has a different vibe, sort of a mix between an Apple store and Starbucks. Several have armed security guards inside. Some like Dragonfly are locally owned, while others operate in several states, including the multibillion-dollar Curaleaf, which recently announced a $20 million deal to buy Deseret Wellness’ three pharmacies in Utah, giving it four in the state.

Curaleaf CEO Matt Darin called Utah an important emerging market for the company, which has businesses in 19 states. By email, he predicted Utah’s medical cannabis program will grow as residents “become more comfortable and familiar” with it.

The company also sells recreational marijuana in states where it is legal.

“Legal, adult-use cannabis means just that, and we ultimately support any measure to ensure that cannabis is tested, regulated and age-gated via the legal industry,” Darin said, noting about two-thirds of Americans support legalization of cannabis.

The state agriculture department, which inherited oversight of the pharmacies and couriers from the health department this summer, inspects cannabis farms and processing facilities at least every three weeks. By comparison, other industries the department oversees have an inspector show up two or three times a year; meat packers have an inspector on-site every day.

Last year, the department conducted 246 inspections of cannabis farms and processors, leading to 52 citations and 122 warning letters. Violations range from inventory counts being off to a bottle being on the wrong shelf.

“We’re not trying to beat them up. We just want them to do it the right way for our patients and everyone else in the industry and for our state,” said Cody James, manager of Utah’s Industrial Hemp and Medical Cannabis Program.

 using random samples selected by the inspectors at the independent or state-run lab. Utah is unique in that the testing labs are not tied to the companies that sell the product, said Rich Oborn, director of the Utah Center for Medical Cannabis, adding, it’s a “scary Wild West” in other states.

The number of Utahns who have medical cannabis cards has grown each year since 2020, per state health department data. But 40% of patients have dropped out of the program.

“It’s not a lack of want as much as it is not being able to afford it. I don’t blame them,” said Hennessy, whose advocacy group offers subsidies for patients.

As of July, 71,850 Utahns held cards, though the growth appears to be flattening. Programs typically top out at 1% to 3% of a state’s population. Utah is around 2%.

“We’re serving more patients than I expected to see actually,” Vickers said.

Dragonfly Wellness added nearly 500 to the total during a 4/20 event in April — April 20 has become a holiday of sorts in the cannabis culture — aimed at getting more people signed up, including West Jordan resident Robert Stosich. He said he wasn’t sure how to get a card before, although his doctors told him he could give cannabis a try.

Stosich, 48, has anxiety and bipolar disorder. He said his legs “go crazy bouncing up and down” when he gets anxious. After a hit or two from a vape pen, the shaking stops, he said a couple of days after using medical marijuana for the first time.

To get a card, patients must meet with a qualified medical professional — a medical doctor, physician assistant or nurse practitioner who has undergone four hours of state-required training — to obtain a recommendation for cannabis. An initial visit with a provider, which typically isn’t covered by insurance, averages $201 — cash only, according to the state health department. A renewal evaluation averages $128.

Patients must have a qualifying condition, which includes chronic pain, PTSD, autism, epilepsy, ALS, cancer, Alzheimer’s disease, multiple sclerosis, Crohn’s disease, nausea and rare and terminal illnesses.

More than three-fourths of Utah cardholders use medical cannabis for persistent pain, with PTSD a distant second and nausea and cancer following that.

Most Utah cardholders are ages 21 to 50. About two-thirds have made one or more purchases in the past 30 days, health department data show. Vape cartridges and pens are the biggest sellers, followed by flower and edibles.

State lawmakers recently made the cannabis card, which costs $15, good for one year, up from six months under previous law.

Providers can recommend cannabis medication to about 950 patients under state law. Currently, there are 959 approved providers statewide, only 236 of them doctors. Most are physician assistants or nurse practitioners.

Society has yet to treat cannabis as medicine, said Tim Pickett, a physician assistant who opened a cannabis speciality clinic in Murray called KindlyMD.

Pickett was called a “pot doc” on television. He said he doesn’t care what people call him but “I think that was a little disrespectful to the patients who would come see us.”

When KindlyMD opened, 8 in 10 patients had tried marijuana or were regular users. Now, Pickett said, about 40% have never tried it.

“It comes down to the fact that it’s really not about the cannabis. At the end of the day, it’s about empowering patients to make choices about their own health care,” he said.

Pickett gives Utah’s program mostly high marks, but said he wishes it were “more medical.” If a 62-year-old Parkinson’s patient with a lot of muscle spasms and chronic pain feels like it’s a recreational program masked as a medical program, that patient won’t choose to try cannabis.

One way to make medical cannabis more legitimate is for doctors to treat it like any other medication, Pickett said. Some providers who take a holistic approach and include cannabis in their normal course of care bill insurance companies for office visits, meaning patients only have a co-pay, something KindlyMD started this spring.

“That’s the key to legitimizing cannabis,” he said.

Further scientific study would also foster more understanding of the plant’s medicinal capabilities.

In conservative Utah, education and research, along with strict quality controls and regulations, would help further remove stigma and make it accessible to those who need it, especially as a substitute for opiate medications and other prescription drugs, Darin said.

Vickers called cannabis an “interesting world” because it’s an illegal substance under federal law and the federal government blocks a lot of the research that could be done. Utah, he said, has “found ways to get around that” with legislation allowing medical studies at the University of Utah and agricultural studies at Utah State University.

Proponents tout medical cannabis’ many uses, including treating pain, nausea and vomiting, increasing appetite and as a sleep aid, among other things.

“It’s like a pharmacy in a flower,” Pickett said.

But Pickett said there can be downsides to cannabis use. Reasonable data show that about 8% of people who use it regularly are going to be somewhat addicted, he said, adding nobody likes to talk about it because it’s a “nonaddictive substance.”

There are people who use it too much, he said, describing a patient who was spending so much money on cannabis that it affected her job and her ability to take care of her family. “Nobody likes to talk about that,” Pickett said.

Also, vaping and inhaling lots of cannabis causes inflammation in the lungs, he said.

The Mayo Clinic said further study is needed to determine if cannabis is safe, but possible side effects of medical marijuana include increased heart rate, dizziness, impaired concentration and memory, slower reaction times and drug-to-drug interactions.

One of the biggest complaints among patients and the main reason people don’t renew their cannabis cards is the cost of the medication.

Kerra Davis, a stay-at-home mom of three boys, estimates she spends about $300 a month to treat chronic pain from endometriosis, pelvic congestion syndrome and arthritis.

“It’s definitely expensive,” she said.

Davis bought cannabis on the black market or out of state before Utah’s pharmacies opened. She said it helped her get off the dozen pharmaceutical drugs she was taking for her medical conditions.

“It really changed my life. I got myself back, who I am back,” she said.

Davis, 36, goes to at least three different pharmacies to find the vape cartridges and tinctures she uses, which she finds a little frustrating. She also said it’s “ridiculous” how much some medical providers charge to recommend a cannabis card.

Sarah (not her real name), a 34-year-old mother of three children who was diagnosed with breast cancer in 2018, has a Utah cannabis card but doesn’t use it.

Her analytical husband put together a spreadsheet comparing prices, taxes, gas and time in Utah and other states. She found it cheaper to drive to Oregon, where she spends $500 every six months to stock up on medication. She said the same $500 would buy a month’s supply in Utah.

“I want to follow the law as much as I can. I just can’t afford to purchase it in Utah,” she said.

The Utah Cannabis Association and the Utah Cannabis Co-Op did a 

 last summer of the three most commonly purchased products — vape carts, flower and gummies — in 19 states. The average cost for those items among the states was $134.25. Utah came in at $130.85, but much higher than neighboring Colorado and Nevada. Oregon, where Sarah buys her medication, was not part of the comparison.

A Utah Department of Health and Human Services survey last December of nearly 9,000 patients, medical providers, advocates and medical cannabis pharmacy representatives found a high degree of satisfaction with the state’s program.

It said 68% are happy with their access to medical cannabis pharmacies and home delivery services. It also found that 61% of patients say that pharmacies in Utah consistently have the products they need and 57% say the pharmacies have a good variety.

Utah is the only state that requires pharmacies to have a licensed pharmacist on site who does a free consultation with each new patient. Pharmacy transactions were cash-only until the state recently allowed the use of debit cards. All sales must be done in person.

Utah passed medical marijuana nearly five years ago. What’s happened since? The program is growing but there are still obstacles for patients, medical providers and the industry.

Utah Medical Cannabis

Inside Utah’s Medical Marijuana Program

To our incredible patients and passionate cannabis community, we extend our deepest appreciation for your trust and support. You have been the driving force behind our commitment to providing the highest quality cannabis products in the state. As we navigate through challenging economic times with rising inflation and supply chain disruptions, we want to share an upcoming adjustment to our pricing model. Our mission has always been to deliver the best value to you while upholding the utmost standards of excellence.

Despite the changes in the economy, we have not raised our prices since opening during the pandemic. However, to continue offering you exceptional products and services, we must make some necessary adjustments. We've made efforts to cut prices wherever possible and increase value, but certain products requiring additional investments in production may see slight increases.

Strong Potency Flower: Enjoy even greater quality potency with our flower options now adjusted to $55 for 3.5 grams, boasting higher total cannabinoid levels.

DragonBites: Utah's #1 selling sleep product will soon be available at value bulk pricing, offering 20 pieces for $48, giving you a lower price per milligram than ever before. Please note that 10 count packs will be discontinued in the near future.

Vape Pods: Our popular Dragonfly 1 gram vape pods will remain unchanged in price, but our 500mg pods will increase slightly from $45 to $47 to maintain the natural cannabis-derived terpenes and high-quality potency you love about our brand.

Liquid Oral Suspension: Experience our fast-acting Dragonfly Liquid Oral Suspension at a reduced price, now at $55.

While we understand adjustments can be challenging, our commitment to your well-being remains unwavering. We will continue hosting discounted new patient and renewal medical card events, ensuring medical cannabis opportunities are accessible to Utah communities and supporting other local businesses.

Your trust and support not only contribute to the growth of Dragonfly Wellness but also strengthen the local cannabis community in Utah. We are dedicated to serving you with the highest level of care, compassion, and excellence. Thank you for being an integral part of the Dragonfly Wellness family. Together, we will navigate this journey towards improved well-being.

If you have any questions or need further information about the price adjustments, please don't hesitate to reach out to us. We are here for you every step of the way.

To our incredible patients and passionate cannabis community, we extend our deepest appreciation for your trust and support. You have been the driving force behind our commitment to providing the highest quality cannabis products in the state.

Embracing Value Together at Dragonfly Wellness 

For patients in the Utah medical cannabis market, it is important to be able to distinguish between good and bad products to ensure effective treatment for their condition. With rising costs and concerns about inflation, it becomes increasingly important to prioritize quality. We aim to empower patients by providing guidance on how to identify high-quality medical cannabis products. By understanding key indicators of quality, patients can make informed decisions, ensuring that they receive safe, reliable, and effective treatments to manage their conditions.

Evaluating the Fact Panels: Terpenes and Cannabinoids 

Differentiating quality medical cannabis is essential for patients seeking optimal results. High-quality medical cannabis undergoes rigorous testing and regulatory oversight, ensuring safety, consistency, and accurate labeling. As a patient, you should look for products that display clear and detailed information on the fact panel about cannabinoid and terpene profiles. Terpenes have more impact on the type of effect you receive than just the THC content. In addition, there are products containing natural organic cannabis derived terpenes while others use botanically derived terpenes from non-cannabis plants and other fruits. It’s important to know if there are any potential allergens that could cause an adverse or undesirable effect. For example, if you are allergic to lavender and using a product containing the botanical terpene linalool, it could induce respiratory symptoms and increased nasal congestion. 

In addition, play close attention to impure cannabinoids such as Δ8-THC,Δ10-THC, Δ6a,10a-THCthat should be non-detectable in products as these cannabinoids are often produced in labs via processing and extraction techniques. Look for naturally occurring cannabinoids such as Δ9-THC, THCA, CBD, CBG, CBDV, CBN, and CBC, just the way Mother Earth intended for it to grow. Reputable producers will provide third-party lab test results, validating the product's potency and confirming the absence of these minor cannabinoids as well as harmful microbials like bacteria, viruses, and fungi (not the good kind).

Lastly, don’t be fooled by low prices at lower potency. It may end up costing you twice as much just to get the same effect of higher quality cannabis. By prioritizing these factors, you can choose medical cannabis that offers reliable relief, superior efficacy, and a positive treatment experience. 

Assessing Cultivation Methods and Product Purity

The cultivation methods used in producing medical cannabis significantly impact its quality. Look for products that emphasize the use of natural inputs, such as organic fertilizers and pest control methods. Some producers may use potentially harmful chemicals and pesticides to control microbial growth and pests which eventually make their way into your body. As an example, Dragonfly uses Integrated Pest Management to mitigate these potential issues. Ladybugs are our best friends and you will find this natural predator all over our farms eating common pests like aphids and spider mites. This focus on clean cultivation helps ensure that the final product is free from synthetic chemicals and harmful residues. Additionally, reputable producers adhere to strict quality control standards throughout the cultivation process, prioritizing the health and well-being of patients. By examining a producer's cultivation practices and seeking transparent information about their inputs and processes, you can identify products that prioritize purity and align with your expectations. If your cultivator doesn’t tell you upfront, then there is a possibility there is something they don’t want you to know.

Recognizing Sustainable and Ethical Practices

As a conscientious patient, you may also want to consider sustainability and ethical practices in the medical cannabis market. Look for producers who implement sustainable cultivation methods, such as energy-efficient practices and renewable energy sources. By supporting environmentally conscious producers, you contribute to reducing the carbon footprint and promoting a greener future. Dragonfly uses energy efficient LED lights paired with a 500kW solar farm that helps reduce our carbon footprint. We also focus on sustainable materials like coco husks that are fully organic and compostable. In fact, we compost all of our organic material including stalks, stems, leaves, and coco husks into nutrient dense compost that our community uses in their garden beds. 

Furthermore, consider producers who prioritize ethical business practices, such as fair treatment of employees and community engagement. Businesses have a moral and social responsibility to the communities in which they serve. Dragonfly focuses on community engagement thru weekly community projects like serving our unsheltered community at St Vincent’s to weekly block cleanups and glass recycling programs. By making informed choices aligned with your values, you can support responsible businesses that are committed to delivering high-quality products and supporting our local communities.

In the Utah medical cannabis market, patients play a pivotal role in identifying and selecting high-quality products. By understanding the fact panels, assessing cultivation methods for product purity, and recognizing sustainable and ethical practices, patients can make informed decisions that ensure their access to safe, reliable, and effective treatments. Take the time to research and evaluate different producers, examining their testing protocols, cultivation practices, and commitment to sustainability. Empowered with knowledge, you can navigate the medical cannabis market with confidence, enhancing the likelihood of a better future towards whole plant medicine and less dependence on traditional pharmaceutical drugs.

For patients in the Utah medical cannabis market, it is important to be able to distinguish between good and bad products to ensure effective treatment for their condition. Here's some tips for making a more informed decision.

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