Australian cannabis companies bring in revenue but remain in the red
30 August 2019, Written by David Simmons
Three of Australia's top cannabis companies have released their FY19 results today, and the story is similar across the board.
Revenue and income are being generated at a stronger level than in the previous financial year, but all three remain unprofitable.
AusCann Group (ASX: AC8) saw its revenues rise by 267 per cent to $1.5 million, but reported a net loss of $7.65 million.
During the year, the company continued to develop and commercialise its cannabinoid-based medicines and made a significant breakthrough with the completion of the product development of its final dose cannabinoid capsules.
The company has developed a hard-shell capsule which provides stable doses of active cannabinoid ingredients.
MedLab Clinical (ASX: MDC) saw its revenue rise by 46 per cent to $8.09 million but recorded a loss of $8.09 million, up 77 per cent on FY18.
The company says its loss for the period increased because of the costs incurred in accelerating the company's research projects and the progression of its commercial operations.
Similarly, CannPal Animal Therapeutics saw its total income rise from $205,912 in FY18 to $400,879 during FY19.
However, the company recorded a comprehensive loss for the year of $2 million, compared to a loss of $1.7 million in FY18.
CannPal's chairman Geoff Starr and CEO Layton Mills say that the company will continue on its path to researching for the eventual goal of making a product available.
"The company will continue with the same intense focus that will ensure diligent budget management and sustained progress across the company's core research programs in the year ahead," says Starr and Mills.
"Having now completed the first phasewe now plan to progress through our pilot Phase 2 studies, with the future aim of making the product available to veterinarians while delivering value to the company's shareholders."
"Additionally, we hope to be able to leverage the research we've completed with CSIRO to provide the Company with additional opportunities to commence revenue generation through the application of advanced food and drug delivery technologies in the hemp and cannabis sector."
"We believe the clear opportunity over the next 12 months is to re-position CannPal from a small R&D company, to a respected animal health business, with multiple clear and credible pathways to revenue that are aligned with the company's mission and values."
Business News Australia
Author: David Simmons