t’s been a strong June Quarter for Little Green Pharma (ASX: LGP) who reported robust growth in domestic and international sales of its medicinal cannabis oils, continued increase in new patient subscriptions and its first export to the United Kingdom.
LGP generated sales revenue of over $875,000 with over 6,050 bottles of medicinal cannabis oil sold, up 50% on the March quarter 2020, with each successive month setting a new sales record.
New patient subscriptions also rose with over 1,390 new patients prescribed and an additional 72 new healthcare professionals prescribed LGP’s products, bringing total prescriber numbers to over 315.
Post quarter end, LGP was granted a Medicinal Cannabis Cultivation and Production Permit by the Office of Drug Control (ODC) for its expanded cultivation and manufacturing facility. The grant of the permit means the expanded facility is now fully ODC licenced and permitted.
The grant marks a key milestone in LGP’s strategy to position itself as a major supplier into the higher-margin markets of Germany, the UK, other key European jurisdictions as well as Australia.
At full capacity, the facility will be able to produce sufficient cannabis flower to manufacture more than 110,000 bottles of cannabis oil per annum.
The ongoing importance of medicinal cannabis as a medical treatment option has been highlighted by the continued increase in patient demand both in Australia and overseas notwithstanding the impact of COVID-19,” LGP Managing Director Fleta Solomon said.
“For this reason, we believe it is necessary for LGP to continue to increase its production and supply of much-needed cannabis medicines to patients across the globe now, as our dedicated team continues to advance the development of innovative delivery systems to improve patient outcomes in the future.
“Our recently expanded cultivation footprint and own manufacturing facility will provide inhouse capability to support our growth strategy, as we aim to create shareholder value through an integrated business model that captures improved margins across the entire value chain.”
During the quarter, LGP exported its first commercial quantity of medicinal cannabis oil to the UK, shipping 1,000+ units to LYPHE Group under a consignment sales agreement. LYPHE will also report real-world anonymised data investigating efficacy, safety, quality of life, and patient reported outcomes back to LGP.
LGP also moved ahead in the key European market of Germany with the company manufacturing CC Pharma’s order of 2,400 bottles of medicinal cannabis oil during the quarter. This order will be shipped to CC Pharma in Germany, pending testing and CC Pharma’s receipt of an import permit from German authorities.
“Our recent successful export of 1,000 consignment units to the United Kingdom and our upcoming shipment to Germany represent strategically important developments for the Company, as they allow LGP to prove up future sales pipelines to deliver significant volumes into key markets,” Ms Solomon added.
“The export of substantial volumes into international markets has always been and remains our primary longer-term goal for driving revenue growth.”
LGP remains on track for commissioning of its onsite manufacturing facility towards the end of Q3 CY2020, after which the commissioned facility will be subject to GMP inspection and approval.
The company maintains a strong balance sheet with $4.3 million cash in the bank at end of June.
Shares in LGP were trading 0.5c higher at 38c in Wednesday trading.