Medlab Clinical has reported 400% revenue growth and "encouraging results" from its Phase 2 NanaBis trial.
Medlab Clinical Ltd (ASX: MDC) shares were sent climbing today after the company provided the market with an update on its ongoing operations.
Over the course of 2019 the company managed to achieve a number of key milestones, including the generation of record quarterly revenue from cannabis sales, representing a 50% increase over Medlab's former best quarter and a 400% spike over the previous corresponding period.
During 2019 MedLab also successfully completed its Phase 2 NanaBis Cancer Pain clinical trial at Royal North Shore Hospital (RNSH). Although data from the study has not fully been analysed, the trial's initial findings have provided "encouraging results".
In summary, for 2020 we are absolutely focused on the opportunity with our Pharmaceuticals business and progress of our Cannabinoid based drug candidates – led by the cancer pain drug NanaBis. Further progress through clinical trials will mark significant achievements toward the commercial opportunity that a registered drug would represent. Otherwise, we do have early revenue coming in from the SAS for pharmaceuticals and nutraceuticals from direct and partner sales.Medlab Clinical CEO and Managing Director, Dr Sean Hall
The company has confirmed that it expects to receive "highly significant data" from the RNSH trial by February 2020, which will serve as another major milestone on the company's path to achieving full commercial registration for NanaBis.
The CEO and Managing Director of Medlab Clinical, Dr Sean Hall, stated that the company's Nutraceuticals business is in the process of expanding into new revenue territories including the US, UK and Asia, which should result in increased revenue flow in the near term, without the need for material operating or capital expenditure.
"The first US initiative was launched as proposed last month. The Australian nutraceuticals business is likely to rationalise somewhat after a year of expansion with large wholesale distribution partners and focus on better performing products – we will be driven by product quality, margin and not by market share," he said.
"We also have licensing opportunities for our NanoCelle delivery platform. We will keep the market updated on any contract success in the path to licensing this technology."
"In the commericalisation of inhouse developed technologies, we also have further revenue opportunities from royalties on blood assays developed as part of our clinical trials protocols and now available for commercial use in other clinical trials and therapeutic monitoring – we will comment further on this as progress is made," Hall said.
Following the completion of the RNSH trial, the company now plans to push ahead with Phase 3 clinical trials for NanaBis—which are expected to begin at some point in 2020—along with an Observational Study aimed at the accumulation of real-world data for eventual regulatory use.
In fact, the Observational Study has already been making impressive headway prior to its formal launch, with recruitment anticipated later this month ahead of the trial's official National rollout.
Medlab's newly launched cannabinoid product, NanoCBD, is expected to begin generating revenue for the first time during the March 2020 quarter, following its recent inclusion in the Therapeutic Goods Administration's SAS program.
At the same time, the company is also monitoring the international regulatory environment to identify new territories where hemp-derived CBD is legal, with the eventual aim of introducing NanoCBD to additional global markets.
Another key asset in Medlab's portfolio is its proprietary drug delivery platform, NanoCelle, which provides increased product stability and greater absorption of ingredients when used.
The technology is currently employed in approximately 23 different products—including NanaBis and NanoCBD—and has the potential to significantly improve the efficacy of generic pharmaceutical products. As a result, the company has confirmed that it is examining ways to further commercialise this technology during the 2020 period, however few other details were given.
"Last, clearly there are a number of catalysts to watch out for, they signify progression – this progression is important as it serves as stepping-stones to our ultimate goal, new approved drugs with significant global potential," Medlab Clinical CEO Dr Sean Hall said.
The market has reacted positively to the company's operations update—which saw shares in Medlab climb in value by 5.17%—and as of 2pm MDC stock was trading at 0.30 apiece.
To learn more about MedLab Clinical visit their Company HQ here.
Disclaimer: Past performance is not an indicator of future performance.
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