Bioxyne has a significant order book to fill following the successful manufacture of Australia’s first pharmaceutical cannabis pastilles. Pic: Getty Images.
Health & Biotech
Special Report: Bioxyne has achieved an Australian first with the successful manufacturing and delivery of the country’s first pharmaceutical cannabis pastilles (gummies) under its Goods Manufacturing Practice certification.
The gummies are manufactured and packaged as three different products according to three distinct compositions with variations in cannabidiol (CBD) and/or delta-9-tetrahydrocannabinol (THC), which are the two primary active pharmaceutical ingredients in cannabis that have their own distinct therapeutic benefits.
Notably for Bioxyne (ASX:BXN) and its Breathe Life Sciences (BLS) business, which was responsible for manufacturing, quality assurance, laboratory product testing and packaging in accordance with its GMP licence, it will now be able to fulfill its initial purchase orders through August and mid-September.
The company had received its first commercial purchase orders for the gummies in July 2024 and has since received purchase orders totalling ~$2m.
Prior to BLS’ achievement, gummy products prescribed to patients in Australia have been manufactured overseas and imported.
However, the real prize is the manufacture and supply agreement that BLS reached in July with one of Australia’s largest cannabis companies to manufacture and supply a forecasted minimum $28m of THC gummy products over the next 24-months.
As part of this agreement, half of the total purchase price of the order will be paid upfront each month by the buyer in the first three months of the contract with the balance upon release or agreed payment terms.
These contracts will significantly increase BXN’s bottom line given that its existing operations generated revenue of $9.43m in FY2024.
Unsurprisingly, BLS is now scaling its gummy manufacturing capabilities from 2 million single doses per month to 6 million in order to meet anticipated market demand.
“To the best of my knowledge, BLS is the first Australian manufacturer to complete a commercial production run of pharmaceutical grade GMP-certified gummies,” BXN managing director Sam Watson said.
“As a leading Australian cannabis manufacturer, we are supplying our pharmaceutical goods to both domestic and international markets, using established relationships and existing supply channels.”
BLS Australia general manager Jason Stephens said the successful production of gummies was a significant milestone for Australian pharmaceutical manufacturing and the medical cannabis industry as a whole.
“Australia is fast becoming a global medical cannabis hub and BLS is quickly becoming a substantial proponent of that. Our focus as a company is building strong ties with our business customers and providing high-quality GMP-certified manufacturing services,” she added.
BXN noted that in Australia, pastilles (or prescription edibles) are expected to grow from roughly 1% of the ~$500m per annum Australian cannabis market to more than 20% by 2030.
This presents the company with the opportunity to take a hefty slice of the potential $150m per annum opportunity by that period.
By comparison, edibles account for ~32% of the CAD$5bn per year Canadian market, where over 50 million packaged units of edible cannabis products were sold in 2023 to cannabis consumers.
This article was developed in collaboration with Bioxyne, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
Health & Biotech
Health & Biotech
Health & Biotech
