Skincare and health products developer Bod Australia (ASX: BDA) has posted a record revenue of $1.22 million for the last quarter of 2018, underpinned by an expansion of its product range, new distribution deals and strong product uptake.
The figure includes sales of $766,000 for the period and represents a 260% increase on first quarter results for the 2019 financial year.
Considerable product uptake was recorded through the company’s national network of independent and specialist retailers.
Revenue generated also includes a research and development grant of $453,170, which recoups the costs associated with Bod’s Phase I clinical trial of its proprietary cannabis-based sublingual wafer product.
The wafer trial signified a world first for the evaluation under “blinded” clinical trial conditions of pharmacokinetics – or the interaction of a drug and its absorption, distribution, metabolism and excretion – relating to full plant cannabis extract.
Blinded conditions refer to the patient and clinician not knowing if they are using an active drug or placebo.
The next phase of the trial will test the absorption rate of the sublingual wafer compared to Bod’s MediCabilis (ECs315) pharmaceutical-grade cannabis extract currently available on the market in oil form.
In November, the company obtained a medical cannabis export licence for its sublingual wafer product allowing it to export Australian-made medicinal cannabis products to international markets including Belgium, Switzerland and the United Kingdom.
Bod generated increased sales revenue from a distribution agreement established in September with Priceline Pharmacy for its MamaCare pregnancy supplement.
Under the agreement which kicked off in October, Priceline will stock 800 gram can and sachet versions of the product in over 200 of its locations across Australia.
MamaCare is a milk-based supplement containing nutrients considered essential to a healthy pregnancy.
It is classed as a food for special medical purposes, and is available only through pharmacies.
The deal with Priceline was enabled by recently-appointed Bod executive chairman George Livery, who is a director of Swisse Wellness Group and has an established network in the pharmacy, health and wellness industry.
During the quarter, Bod also struck a deal during the quarter with Australia’s Chemist Warehouse Group, for the distribution of MediCabilis (ECs315).
Chemist Warehouse is currently the country’s largest pharmacy retailer, boasting 450 store locations and employing around 15,000 staff.
As part of the agreement, Bod will manage a training program to educate pharmacy staff on all aspects of dispensing MediCabilis to eligible patients, as well as the potential benefits of medicinal cannabis and changes to the regulatory landscape.
Chief executive officer Jo Patterson said Bod is well-positioned to continue growing its revenue profile via pending distribution agreements, international sales opportunities and a range of potential products targeting new sectors.
“Our board and management are confident that sales growth will continue into this financial year, underpinned by the addition of new natural medicines to our existing range, international sales and expansion opportunities, as well as ongoing uptake of medicinal cannabis products through our approved prescriber network,” she said.
“We have solidified our position as a market leader in this space and we remain well-capitalised at the end of the period to drive further growth throughout Australia, Asia and Europe.”
At midday, shares in Bod Australia were up 15.66% to $0.48.