ASX Health Stocks: Cann’s cannabis flower sales grow 500pc; Immuron runs out of Travelan as travel rebounds
Health & Biotech
Health & Biotech
Link copied to
Cannabis house Cann Group (ASX:CAN) rose 8% this morning after releasing its full year revenue guidance.
Cann expects unaudited operating revenue to be approximately $13.5 million for FY23, representing growth of 111% or 2.1 times FY22 revenue.
This came on the back of strong market demand for its dried flower products, with sales increasing by approximately 500% on FY22.
Cann says these flower products are the base for continued growth as the company scales up their production.
The increase in sales was mainly driven by the domestic Aussie market, with the strong sales momentum supported by new clients entering into supply agreements, and several existing clients with repeat orders.
According to Cann, customer acquisition has been strengthened by the company’s ability to supply consistent quality, GMP product from the flagship facility in Mildura, achieved through the state-of-the-art cultivation and manufacturing processes.
FY23 production output at Mildura was 2.2 tonnes. In May, Cann planted the largest crop in the company’s history, representing 8 tonnes annualised yield. This crop will be harvested in later this month.
“With production output increasing at an impressive rate, we have the unique ability in Australia to scale to big volumes right now, and capitalise on the rapidly growing demand for quality, locally grown and manufactured product,” said Cann Group CEO, Peter Koetsier.
“As we continue to accelerate the scale-up of production over the next 18 months, we expect to gain substantial efficiencies, improved margins and strong operating leverage, and these elements are expected to provide a path to EBITDA profitability.”
Immuron (ASX:IMC) also rose 5% this morning after reporting that its FY23 sales increased by 136% from the previous year.
Sales of the Travelan and Protectyn products increased by 136% in FY23 to $1.80m, compared to $765k in FY22.
Travelan sales have increased as overseas travel rebounds. According the ABS, Australian resident short term departures in April were 82% of those in April 2019.
Immuron previously reported that strong sales of Travelan may result in short term stock outages in some wholesalers and pharmacies in the June quarter. This did occur.
While Immuron does have inventory of Travelan Australia ready to release, it is unable to do so until it has received GMP clearance from the Therapeutic Goods Administration (TGA).
Even though Immuron has transferred and validated the transfer of packaging to another supplier which has a valid/current GMP certificate from the TGA, the TGA is unable to give Immuron a timeline for GMP clearance.
The TGA advises that it is experiencing extremely high volumes of GMP clearance extension applications which is resulting in delays to processing timeframes.
Immuron says it will continue to press for an early resolution of this issue with the TGA.
In the US, Immuron has inventory of Travelan USA on hand, sufficient to meet the needs of its current customers and to expand into new market segments. Immuron has shipped inventory to Amazon with launch anticipated in the next couple of weeks.