Amid the Coronavirus chaos and plummeting stock markets, Althea continues to show a strong upward trajectory in patient numbers and revenue.
Althea Group Holdings (ASX:AGH) has just announced that February has overtaken January as the company's second-best month for patients added, as the company adds 617 patients for the month. The company's total patient numbers now exceed 5,000.
Moreover, this increase in patient numbers combined with 'recurring revenue' from patients who are remaining on Althea's medicine following their initial 1-3 month treatment period is putting the company on track to generate the most sales in a single month this coming March.
The Company expects this upward trajectory in both patient numbers and sales to continue into the future, as doctors who see positive results in their patients using Althea products are likely to repeat the patient and prescribe it to others.
UK Exports to Increase
In addition to the positive news regarding increasing patient numbers and revenues, Althea announced that the company will be increasing the number of Althea products shipped to the UK to unprecedented levels.
The increase in exports to the UK was made possible thanks to The UK Home Office stating earlier this month that "Import restrictions have been changed to help ensure people with prescriptions for cannabis-based products for medicinal use do not have their treatment delayed or interrupted."
This announcement means that Althea will be able to import larger quantities of cannabis-based products to the UK moving forward, as well as allowing the company to keep additional supplies for future use. Currently, UK patients receive Althea products in a number of weeks, though the change in import restrictions will now mean that patients can expect to receive their medications in a number of days, and that the company will have a consistent supply of cannabinoid-derived medicines for patients in need.
Completion of Peak Processing Solutions Facility
Althea also announced the completion of the Peak Processing Solutions facility, in Ontario, Canada, which will allow for Peak to move ahead in its pursuit of a Health Canada licence.
Once Peak is granted a Health Canada license, the company will be one of few companies capable of manufacturing cannabis-infused products for consumer-packaged goods companies, such as edibles and extracts – which have recently been made legal in the country – allowing Peak to capitalize on a large gap in the Canadian recreational cannabis market.
How Althea is Coping with Coronavirus
Althea has mentioned that it will be keeping a close eye upon the COVID-19 situation and how it might affect the Company, as well as the impact the virus might have on healthcare professionals and their ability to continue assisting patients.
In order to help deal with the situation, Althea will be working in close concert with healthcare professionals as well as utilizing telehealth services to minimize social interaction, and launching online sales through the company's esteemed 'Concierge' platform. The Company has mentioned that the supply chain for Althea's products is unaffected by the coronavirus crisis, and remains well financed to push through the COVID-19 period.
Althea's Founder and CEO Joshua Fegan said that "Althea provides an essential service to the community and we will continue to work with our many stakeholders to ensure our patients can access their medications in a safe and efficient way. These are certainly challenging times and the Company understands we have a great responsibility not just to patients, but also to our shareholders."
The board, myself and the executive team are monitoring the COVID-19 crisis very closely and, notwithstanding current conditions, we aim to deliver on all our objectives, whilst maintaining our strong balance sheet. Joshua Fegan, CEO and Founder of Althea Group Holdings
"The Company has zero debt, approximately $1.8 million in inventory and over $15 million cash on hand, to support our growing sales," Mr. Fegan concluded.
To learn more about Althea Group Holdings, visit their company HQ here.
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