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Pharmaceutical manufacturer and medicinal cannabis group IDT Australia (ASX: IDT) has sweetened the pot for potential international suitor Myndbio after reporting a 92 per cent lift in revenue for FY24.
IDT, which revealed last month it received a non-binding indicative takeover bid from Myndbio (Mynd), has reported that the unaudited figures for the June quarter are the strongest since the company announced a strategic transformation program at the end of 2022.
Total FY24 unaudited revenue of $13.5 million is 92 per cent up on the previous year and has exceeded the company’s guidance range of $12.9 million to $13.4 million.
IDT says the result has been buoyed by an 87 per cent increase in June-quarter revenue to $4.6 million compared to a year earlier, with the figure 44 per cent ahead of the preceding March quarter.
The Melbourne-based company, which provides a suite of contract manufacturing services to the pharmaceutical sector, says all three of its business pillars recorded solid growth in the fourth quarter of FY24 compared to the previous corresponding period.
The standout was the Advanced Therapies pillar, which recorded quarterly unaudited revenue of $1.1 million – up from $60,000 a year earlier.
“Advanced Therapies is a key growth driver for the company and is leveraged to some of the fastest growing areas in medical technology, namely Antibody–Drug Conjugates and messenger RNA (mRNA),” says IDT.
The Active Pharmaceutical Ingredient (API) manufacturing pillar recorded a 182 per cent growth year on year, with unaudited revenue hitting $1.3 million.
“This business provides the key input in the manufacture of Advanced Therapies and Specialty Orals, and IDT’s strategy to build and offer an integrated value chain continues to gain market traction,” says the company.
Despite the supply “old medicinal cannabis products” that the company says has weighed on the Australian medcan market, IDT has also managed to increase quarterly revenue from its Specialty Orals pillar by 6.7 per cent to $1.9 million.
IDT says its Specialty Orals business is one of the few facilities in Australia that meets the new regulatory standards for medcan and it also produces psychedelics for the fast-growing mental health treatment market.
“Pleasingly, unaudited revenue from this vertical in Q4FY24 has rebounded strongly over the past two quarters, up 165 per cent from Q2FY24 and 40 per cent from Q3FY24,” says the company.
IDT, which recently completed a $7 million capital raising to help fund its capital expenditure program, reveals that Mynd is currently undertaking “limited, first-stage due diligence” on the company on a non-exclusive basis.
The company says discussions are continuing but it also notes that there is no certainty that this could lead to a binding offer from Mynd, a manufacturing and distribution group for psychotropic medicines in Europe and the UK.
Mynd’s indicative offer of 15c per IDT share would value the company at $64.4 million. IDT shares were trading below the indicative offer price at 13.5c at 11.59am (AEST) – up 1c.
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