New prescriptions are driving growth for medicinal cannabis company Bod Australia (ASX: BDA) while a recent launch for hemp products with Swisse Wellness has been well received.
The Sydney-based group saw its revenue jump by 144 per cent to reach $3.4 million in the nine months to 31 March, of which around $1.3 million came from the last quarter alone.
Bod filled a total of 1,107 prescriptions for its MediCabilis medicine in Australia in the third quarter, taking the total number units filled in FY2020 to 3,064.
“Pleasingly, the Company is witnessing a very low churn rate of c.26% amongst patients, highlighting physician and patient satisfaction with products,” the company said.
“Sales were bolstered by the introduction of two new CBD isolates products in varying strengths. Bod received 40 prescriptions for the new isolates in March 2020.
“These products broadened Bod’s addressable market by c.32% and can be prescribed with lower restrictions.”
Bod claims 74 per cent of prescriptions are currently being used to treat chronic pain, epilepsy, and stress and anxiety disorders.
“Bod is confident that it will see increases in MediCabilis prescriptions over the coming months due to the chronic indications in which the product is being used to treat. Bod will provide ongoing updates on prescription sales over the coming months.”
The company has also undertaken rigorous patient and physician education initiatives as part of its UK market entry, along with collaborative work with distribution partners to ensure the necessary infrastructure is in place to scale operations rapidly.
“In addition, Bod continues its work on Project Twenty21, a UK based study, which will enrol 20,000 patients by the end of 2021 to create the largest body of evidence for the efficacy of medicinal cannabis.
“Bod is one of five companies invited to participate in Project Twenty21 and is aiming to treat a minimum of 1,000 patients with its MediCabilis CBD product. The Company will receive a cost per prescription for each MediCabilis unit sold. First prescription for this trial is expected this month.”
On 30 March the company announced the launch of its hemp products to 2,000 Australian stores through a partnership with vitamin, supplements and skincare brand Swisse Wellness.
The deal relates to a partnership with Swisse’s parent company Health and Happiness Group (H&H) secured in July last year.
The recent launch includes nine hemp-based products that are being sold in chains including Chemist Warehouse, Coles and Priceline Pharmacy. The range includes various skincare products, as well as soft gel caps containing hemp seed oil.
“Swisse’s Hemp product roll out is a strategic move for the brand as we focus on offering innovative wellness solutions that respond to consumer shifts and growing demand,” Swisse managing director Nick Mann said at the time.
“For Swisse, as we reflect on our first 50 years and embark on the next chapter for our brand, hemp is very exciting – it is not just a great business opportunity but speaks to our brand pillars, and importantly aligns with our sustainability strategy and commitments.
“We are preparing our business for the legalisation of CBD in Australia, so we can take advantage of the market with product innovation in partnership with Bod.”
In today’s announcement, Bod said the licencing agreement with H&H continues to build momentum through existing and planned initiatives between each company.
“The nine initial hemp seed oil products (in ingestible and skincare forms) launched under the Swisse Wellness brand have been well received by consumers,” Bod said.
Business News Australia