Despite being a roller coaster ride, the year 2019 has seen investors flocking to cannabis stocks amid market impetuosity, strong competition and economic pressures. The cannabis sector is on the brink of a green rush, as several listed cannabis companies have already started to bloom backed by a growing patient base and a legislative backdrop that is starting to liberalise gradually across the globe. And, all this can be attributed to the benefits of cannabis and hemp derived products, including cannabinoid (CBD), receiving much recognition and improved market acceptance.
A segment that has become an area of growing interest and is primed for a significant growth in future is animal health. The use of cannabis derived therapeutic grade products for animal health is growing due to the medicinal benefits noted for humans and increased support for these products by veterinarians for the mental wellbeing of animals in the era of cannabis legalisation.
It is worth noting that cannabis and hemp are equally effective in animals as they are in humans because of the similar endocannabinoid system. There is a substantial requirement for pet complementary feed products focused on animal stress, anxiety and age-related diseases.
One of the players well positioned for success in the burgeoning cannabis animal health space is ASX listed pharmaceutical company, Creso Pharma Limited (ASX: CPH), which specialises in the development and commercialisation of cannabis and hemp derived products. Creso Pharma has a diverse portfolio including 13 cannabis and hemp derived therapeutic, nutraceutical, and lifestyle products for human and animal health, of these 13 products, 4 have already been commercialised and 9 are pending for commercialisation.
Creso’s Animal Health Product Pipeline
Creso Surpasses Milestone of 3 Million anibidiol® Doses Sold in Europe
In late-2017, Creso Pharma rolled out anibidiol®, one of the first of many hemp CBD based medicines used for animal health, being produced in Switzerland and commercialised in collaboration with global animal health company, Virbac S.A. (EPA: VIRP) in over 10 countries in Europe. In 2019, the global sales of anibidiol ® grew approximately 700%.
On 21 January 2020, the company announced that it sold over 3 million portion sachets of anibidiol® granules since the product launch, a milestone achievement for Creso.
More than 100,000 dogs are estimated to have benefited from the company’s anibidiol® range of hemp oil complementary feed products, anibidiol® Regular and anibidiol® Plus, which are commercialised for small, medium-sized and large pets to help mitigate stress and assist in the functioning of the nervous system, thereby, improving the wellbeing in dogs.
Moreover, as per pet owners, anibidiol® has aided in pain management and vitality of their pets after just 7 days of use when given with the normal feed.
Source: CPH Report
The company has rolled out or in the process of launching several other products targeted for pet wellbeing such as
- Together with Virbac Switzerland, Creso Pharma has recently rolled out the new product “anibidiol Oil 500” as a lifecycle management enhancement for the anibidiol® range;
- Creso Pharma has successfully developed three additional hemp-derived products, with scheduled launch during 2020;
- Creso recently brought its new anibidiol® Oil 500 product to the market in collaboration with Virbac Switzerland, as a lifecycle management enhancement for the anibidiol® This step highlights the company’s focus towards strong demand from pet owners and veterinaries. Revealing further the company informed that the initially the product would be sold in Switzerland, with other national markets being added throughout 2020.
Creso Pharma has generated strong revenues from its nutraceutical and animal health product sales during the fourth quarter of FY2019 amounting to AUD 1.587 million while the equivalent unaudited revenues from the same segment of product sales amounted to AUD 2.774 million for the full year 2019, representing an increase of almost 500% on AUD 0.556 million for the full year 2018.
Creso Pharma foresees promising developments in 2020, to further drive growth in revenues. There is no doubt that the company is primed for a robust growth with its balance sheet bolstered by undrawn debt facilities and equity funding, allowing to successfully implement its business strategy.
Due to increasing adoption of pets, globally, along and a higher propensity of people to spend on pet healthcare, the global pet care market is also growing at a rapid pace. According to few market reports, the global pet market is forecast to exceed USD 200 billion by 2025, while global CBD market is projected to surpass USD 17 billion by 2026. Additionally, global veterinary CBD market is expected to register strong growth over the coming years.
To conclude, CPH expects to keep on leveraging the growing trend of the ‘humanisation’ of pets at a global; level, in which pets are being treated as people’s best friends or family members, as quoted by Dr Wernli.
Creso Pharma closed the day’s trading at $0.175 on 23 January 2020, with a market cap of $31.34 million. The year to date return of the stock stands at 56.52%.
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