An Australian medicinal cannabis company achieved 50 per cent year-on-year revenue growth in the June quarter, backed by a roll-out of its nutraceutical range Priceline and TerryWhite Chemmart pharmacies.
Medlab Clinical (ASX: MDC) recorded revenue of $3 million for the quarter, and that money didn't even come from its flagship NanaBis oral spray for pain management - a product that is still in the commercial development stage.
The sales result is almost a trifle compared to the company's $85 million market capitalisation, yet it galvanised the market this morning with shares up almost 13 per cent at $0.395 at 11:45am.
Speculation around the company is banking on the eventual roll-out of NanaBis, with two studies taking place in Australia and R&D underway with Canadian partner Pharmascience.
The company highlighted it continued to move forward with its research-driven agenda with significant gains in both core product categories, focused on chronic disease markets including pain management and depression where global markets represent significant earnings potential.
Medlab came in seventh spot in this year's Australia's top 20 cannabis companies list published recently by Business News Australia.
In addition to reporting the sales result, the group noted key positions for product placement of its nutraceutical range within stores.
"it's apparent that a number of our clients remember me from when I coowned and managed BioCeuticals," says Medlab CEO Dr Sean Hall.
"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."
The company added it was also actively seeking regulatory pathways through the Therapeutic Goods Association (TGA) in Australia, Food and Drug Administration (FDA) in USA and the European Medicine Agency.
Medlab drew attention to figures from the Australian TGA Special Access Scheme (SAS) that show market-wide prescriptions reached about 3,500 in the three months to May.
"Now the commercialisation strategy has started making large ground and as a Company, we are very bullish for the next 12 months," the company concluded in its outlook.
Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Get our daily business news
Sign up to our free email news updates.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support