ATLANTIC CITY — When the nation’s largest smoke shop expo descended on the convention center here earlier this spring, sales reps scrambled to offload pallets of a controversial synthetic kratom product known as “7-OH” before lawmakers in Pennsylvania and New Jersey ban their products.

The addictive drug 7-Hydroxymitragynine, a highly concentrated lab-made compound derived from the kratom plant, flooded the bustling floor of the CHAMPS trade show.

Yet some vendors said they weren’t worried about bills working their way through Harrisburg and Trenton.

Their suppliers had already cooked up new recipes.

Matt Swann, a real estate investor turned 7-OH distributor from Salt Lake City, promoted a new product called “Cori,” a four-pack of tablets wrapped in a sleek green package. Swann’s offering draws from corydalis, yet another plant from East Asia that produces similar pain-killing alkaloids to kratom — but is not the target of any proposed bans.

“Legislation is what shuts me down,” Swann said, at his one-man expo booth in March. “This is how we stay ahead.”

Half a dozen 7-OH sales reps told The Inquirer that companies are changing their formulas to preemptively sidestep legislation prompted by concerns over the drug widely dubbed “gas station heroin” for its promised high and addictive potential.

Federal authorities began taking steps last summer to classify 7-OH as a controlled substance due to its widespread availability and reports of abuse. At least a dozen states have moved to outlaw the substance, and bills in Pennsylvania and New Jersey are being considered.

But in the booming gray market for synthetic drugs — from kratom to lab-made THC to psychedelics — the difference between legal and illegal can be as small as a molecule.

To dodge the crackdown, some companies are swapping their active ingredient from 7-OH to a related compound called mitragynine pseudoindoxyl, or “pseudo.” Others are pivoting to 13-Hydroxy Mitragynine, or “13-OH.” Both function in similar ways, binding to opioid receptors in the brain.

And vendors promised the variants are just as powerful.

Some kratom advocates welcome restrictions on 7-OH and other chemically concentrated alkaloids. But they also worry that lower potency, natural kratom products will get caught up in sweeping bans.

Swann criticized the panic around 7-OH. He described both it and his new corydalis product as safer alternatives to opioids that can help people living with chronic pain.

Swann said he is clear with buyers about the risk of dependency. Kratom-derived pain relievers are far less fatal than opioids, whose pharmaceutical producers, he argued, are threatened by the drug’s popularity.

“It’s the safest alternative,” he said. “Kratom is 10-fold the product.”

A game of molecules

Last summer, Florida passed an emergency ban specifically targeting 7-OH. Other states, like Vermont, have banned kratom altogether, as well as any related alkaloids, preemptively cutting out alternative compounds like 13-OH or pseudo.

New Jersey lawmakers are advancing legislation that would similarly classify 7-OH as a controlled substance, although it makes no mention of these related alkaloids.

Another bill under consideration in Harrisburg mimics Vermont’s strategy by outlawing all products that contain over 2% 7-Hydroxymitragynine, as well as any other “synthetic, semi-synthetic, or chemically manipulated alkaloid” derived from the kratom plant.

“They can call it whatever they want,” said Sen. Tracy Pennycuick (R., Montgomery County), the bill’s lead sponsor. “If it comes up 2%, it’s still banned.”

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Still, as written, the ban might cover new variants like “pseudo” and 13-OH but not the latest extracts from the corydalis plant.

Meanwhile, pro-kratom lobbying groups have pushed lawmakers to create clear legal definitions between naturally sourced, low-potency kratom products and those ultra-concentrated, synthetic forms like 7-OH.

Dallas Vasquez, CEO of Mitra9, a Florida-based company that distributes kratom and kava-infused beverages across the country, said the two products are “not equivalent from a chemistry or pharmacological standpoint.”

He said Mitra9 does not use concentrated 7-OH to make the drinks more potent. His products contain less than 2% total kratom alkaloids, with low levels of 7-OH that occur naturally in extracts from the plant leaves, according to lab tests reported on Mitra9’s website.

“My business is built on the bet that the responsible segment of the market will survive,” Vasquez said. “If it doesn’t, I lose too. So I have every incentive to be honest about what the products are.”

Booming profits, clandestine makers

The CHAMPS trade show traditionally serves as a meetup for recreational drugmakers and retailers of cannabis. That the kiosks were dominated by 7-OH vendors is a sign of kratom’s growing popularity and profitability.

Large kratom companies pushing products with opioid-inspired names like “Opia” and “Perks” can bring in millions in revenue per month, according to Swann, the vendor from Salt Lake City.

Many companies are supplied by a small network of kratom manufacturers that synthesize products, often on condition that the makers’ names be kept secret, according to Swann and company owners who spoke with The Inquirer. So long as the compounds remain legal at the federal level, there are labs willing to make them en masse, which sellers like Swann can distribute in states without total bans.

For everyone involved, profits are high.

“[Manufacturer] profit margins are in the 5 to 10% range, but they’re doing millions and millions of dollars,” Swann said. “My profit margin is closer to 200% to 300%. If I invest a quarter-million dollars, I can usually come out with a million.”

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Swann said he started his own business with $250,000 in capital and a phone call to a lab in Utah. His brand, Siete, launched within months. He estimated that his new “Cori” product had a life span of three years before it, too, would be banned.

Camille Winans, a sales representative for a company selling new 13-OH products, argued that kratom had been demonized by lawmakers and that keeping the products on shelves amounted to “harm reduction.”

However, medical experts say there has been an uptick in admissions to rehabs from people who got hooked on kratom, including in Pennsylvania.

Jason Kirby, chief medical officer of Recovery Centers of America, worries that states would ban 7-OH without the necessary medical resources for people who are dependent on it. He said hospitals struggle with an influx of kratom users in states that passed sweeping bans.

“One day it’s legal, and the next day it’s not,” he said. “So I’m going into the vape shop to refill my need, and it’s not there anymore, and I’m going to the emergency room in withdrawal.”

Bans would also not prevent manufacturers from finding new loopholes, he said.

“We’re gonna be dealing with a brand new synthetic substance that we’re gonna have to figure out all over again, and figure out pathways and management for,” he said. “We always have to stay ahead of them.”

This article was supported by the Fund for Investigative Journalism.

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