Australia-based healthcare company IDT Australia Limited (ASX: IDT) surged up 48.148% in a day-trade after the company announced that it has secured a grant of Medicinal Cannabis Manufacturing Licence under the Narcotic Drugs Act 1967 from the Department of Health – Office of Drug Control. The stock settled at $0.200 on 20 May 2019.
The license permits the pharma company to commence the following activities:
- The manufacture of extracts and tinctures of cannabis and cannabis resin (Drug) in accordance with one or more manufacture permits.
- Activities relating to such manufacture, including but not limited to the following:
- The supply of the drug.
- The packaging, transport storage, possession and control of the drug.
- Destruction or disposal of drug
The manufacturing and packaging facilities of IDT already possess Good Manufacturing Practices (GMP) licence, which has been issued by the Therapeutic Goods Administration (TGA), along with requisite Poisons Licensure for handling certain Schedule 8 and 9 drugs.
IDT has a long history in manufacturing both Active Pharmaceutical Ingredients (API’s) and Finished Dosage Forms compliment, and the license enables IDT to tap the available opportunities in the medicinal cannabis space. The manufacturing capabilities of IDT enables to manufacture a range of precursor products such as cannabis resin and cannabinoids. Tinctures, liquids and solid oral dose are forms of GMP finished dosage used for clinical trials and commercial application. IDT has the ability to develop these GMP finished dosage as well.
Dr David Sparling, CEO of IDT, stated that the company is very pleased to secure the Medical Cannabis Manufacturing License from the Office of Drug Control. He said that the arrival of license places IDT in a strong position on a rapidly growing medicinal cannabis market, coupled with expertise in GMP pharmaceutical manufacturing.
In February 2019, IDT released half-year report for the period ended 31 December 2018. Revenues were reported at A$6.5 million in 1HY FY19 against A$4.9 million in the previous corresponding period. Comprehensive loss after tax for the half year was A$2.39 million in 1HY 2019 against a loss of A$17.20 million in 1HY 2018, the loss narrowed mostly due to no expenses incurred in impairment of intangible assets in 1HY FY19 against A$14.14 million of impairment expense accounted in the previous corresponding period. IDT was engaged in some notable financing activities during the period which included payments for small parcel share buyback and payments for on market share buyback. The small parcel share buyback fetched 659,381 Ordinary Shares held by 598 shareholders at a bought back price of 15.5 cents per share. IDT also acquired 9,043,138 shares for the consideration of A$ 1,527,775 till 31 December 2018 during on market share buyback.
IDT stock has gone up by 68.75% over the past 12 months despite a negative performance change of 18.18% recorded in the past three months. The 52-week high and low of the stock stand at A$0.245 and A$0.067, respectively, as at 20 May 2019.
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