The Australian medicinal cannabis company, Medlab Clinical Ltd (ASX:MDC), published an operations update today with strong results for the June quarter.
The company recorded 50% year-on-year growth during this period, with the increase in revenue being fuelled by the rollout of the company's nutraceutical range in Priceline and TerryWhite Chemmart pharmacy chains.
The range can now be found in over 3,000 Australia pharmacies, leading to impressively high retail sales in June which saw the company achieve over $3 million in total revenue for the quarter, representing an 135% increase on the same quarter last year.
Medlab was particularly bullish about its chances going forward, citing data from the Therapeutic Goods Administration (TGA) showing that market-wide prescriptions being issued through the Special Access Scheme (SAS) reached 3,500 in the three months leading up to May.
While the company's sales revenue is relatively minor compared to its market capitalisation—which is valued at $85 million—the news still shocked the market into a buying surge, which saw the cost of Medlab stock increase by nearly 13% to 0.395 a share earlier today.
Medlab has also continued to progress with its research in both of its major core product categories. The company is now focused on targeting the chronic disease markets and will be targeting conditions such as depression and pain management, as they represent "significant earnings opportunities".
According to the company's operational update, Medlab has been growing its inhouse distribution team in conjunction with third-party distributors—where appropriate—in order to maximise its potential global market penetration.
The company has also created a new Scientific Liaison team, to help increase access to Medlab's medicinal cannabis products.
The team has been working for the last several months with medical specialists and approved healthcare professionals to help facilitate greater patient access under the SAS approval scheme.
"It's apparent that a number of our clients remember me from when I co-owned and managed BioCeuticals. Although BioCeuticals was sold several years ago, this time has given me the ability to leverage solid research into the Medlab nutraceutical range and I believe this is what sets us apart from other ranges."
– Medlab CEO, Dr Sean Hall
Other operational highlights include the April announcement of an agreement with Chronic Pain Australia—which supports over 35,000 people living with the condition each month—to provide further education on cannabis as a form of chronic pain relief.
In May the company executed an agreement with a Thai pharmaceutical company, Mega Lifesciences Public Company Limited, for the distribution of Medlab's cannabis-based medicine, NanaBis, in certain parts of South America. The deal was the second Heads of Agreement entered into by the company this year, after it executed an agreement in March with the Canadian pharmaceutical company, Pharmascience Inc, for the further development and distribution of Medlab's flagship cannabis product, NanaBis.
Medlab also drew attention to its current efforts to establish further regulatory pathways through the Food and Drug Administration (FDA) in the US and the TGA in Australia, as well as the European Medical Agency.
The update concludes by noting that the senior management of Medlab is "very pleased" with the continued progress of the company.
"Research continues to move forward, whether in cannabis, depression or other areas of chronic illnesses."
"Now the commercialisation strategy has started making large ground and as a Company, we are very bullish for the next 12 months," the report stated.