The Althea Group had a blockbuster 2019, achieving numerous milestones such as hitting the 1,000 patient benchmark five months ahead of schedule.
Althea Group Holdings Limited (ASX:AGH) gave its investors an update on the company's operations during its 2019 Annual General Meeting.
During the 2019 fiscal year the company made significant progress in every aspect of its operations. This included Althea's expansion into the UK market—and proposed expansion into Germany—increasing patient and prescriber growth and the receipt of the cannabis licenses needed for cultivation, manufacture, import and export activities.
This accelerated growth has also been buoyed by the ongoing expansion of Australia's medicinal marijuana market, which is now entering a "rapid growth phase", according to research from industry expert FreshLeaf Analytics.
FreshLeaf estimate that Australia's addressable market for medicinal marijuana was up to 500,000 patients as of July 2019, however at that time only 5,000 were having their needs met. This view was echoed in a recent report by Prohibition Partners, which predicted that Australia will become the leading medicinal cannabis marketplace in Oceania by 2025, with an estimated value of $11 billion.
Althea is replicating its highly successful Australia-born strategy in the UK by simplifying patient access to medicinal cannabis and using a combination of in-field representatives and our proprietary Althea Concierge technology platform to encourage uptake. Althea Group CEO, Joshua Fegan
Althea stock already has covered significant ground since its initial listing—having debuted on the ASX in September 2018—while also launching its free online platform for patients and healthcare professionals, Althea Concierge, that same month.
Althea was subsequently granted manufacture and export licenses in November 2018, making it one of the few companies in Australia to be operating at the time with a full set of cannabis licenses.
The company then kicked off 2019 by announcing that it had successfully expanded into the UK market via its wholly owned UK-based subsidiary, Althea MMJ UK Ltd.
This was subsequently followed in May by the Launch of Althea Concierge UK, which will assist the company's entry into the UK market.
Althea have also partnered with the UK's only independent scientific committee on drugs, Drug Science. This is an important milestone for the company, as its partnership with Drug Science will see Althea supply a range of products to the organisation for its landmark TWENTY21 study, which will involve 20,000 UK patients taking part in a medicinal cannabis trial.
The company also scored another big win June, when it achieved its 1,000 patient milestone five months ahead of schedule.
In July Althea received a UK import licence, allowing for the shipment of medicinal cannabis products from Australia. To accompany this, the company subsequently launched MyAccess Clinics in London, one of the UK's first cannabis referral clinics.
The company is also looking to expand into Europe. Last month it announced its intention to enter the German market through a memorandum of understanding with German pharmaceutical wholesaler Nimbus Health GmbH.
The funds generated by Althea's recent capital raising—combined with revenue which significantly offsets operational expenditure—means that the company is well-funded to pursue its ongoing initiatives, with its goals for the next year including adding new products to its portfolio and continuing its expansion into the UK and Germany, while also reaching 10,000 patients in Australia.
Althea's management team has also confirmed that the company's immediate focus will remain on rapidly expanding its patient base.
To learn more about Althea Group visit their Company HQ here.
Disclaimer: Past performance is not an indicator of future performance.
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