Rapid medicinal cannabis prescriptions growth, new product launches and a UK expansion have lifted Bod Australia's (ASX: BDA) performance in the first half of FY20.
The Sydney-based company saw its revenue almost double to $2.09 million, backed by strong growth from its medicinal cannabis division and consumer-focused CBD products business.
"The Company also considerably decreased ordinary losses from activities by 49.5 per cent to $1,407,951 driven by a reduced spend on R&D associated with clinical trials and marketing," the company said in a release this morning.
The half has been described as "transformational" for Bod, especially with the "game-changing" development of a $7 million investment from NewH2 (the innovation arm of H&H Group) which led to Bod launching its first CBD products in the UK market.
H&H Group helped Bod launch its first CBD products through a new premium brand CBII, which was the first time H&H has had a CBD product in its portfolio.
The two companies will expand into traditional retail in the UK in the near term, and as part of the binding licensing agreement H&H will initiate marketing and brand campaigns to drive uptake and awareness.
This support is expected to significantly defray Bod's working capital.
"Not only have we considerably increased revenue on the previous corresponding period, but also witnessed the first material sales from Bod's medicinal cannabis products and CBD products in collaboration with H&H Group," says CEO Jo Patterson.
"Early signs are encouraging and we are confident that we will continue to aggressively build top line growth while at the same time maintaining a strong focus on cost control.
"The Company's strategic agreement with H&H Group means Bod is uniquely and very well positioned to rapidly expand through the commercialisation of CBD and hemp products."
Patterson says Bod is also set to launch a number of products under new and existing brands in the second half of FY2020, which will enhance revenue streams.
"MediCabilis prescription volumes continue to grow at a steady clip and growth will be helped by progressing an expansion into the United Kingdom in the coming weeks and the well-documented launch of two new CBD products," says Patterson.
In other medicinal cannabis news, Botanix Pharmaceuticals reported a 62 per cent rise in revenue to $7.66 million for the half, but losses deepened by a third to almost $7 million.
Botanix also completed a $40 million capital raising during the period to support its international expansion efforts.
Unlike Bod which is now in the commercialisation phase, Botanix is a clinical stage dermatology company focused specifically on treating skin diseases.
Fresh off the back of securing a new storage and distribution deal in Australia, another medicinal cannabis company Auscann (ASX: AC8) announced its revenue was down 45 per cent at $256,953.
On a more positive note though, Auscann's loss was $3.4 million compared to $4.48 million in the previous corresponding period.
Business News Australia
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