On 9 November 2018, Bod Australia Limited (ASX: BDA) announced that it has aligned with Australia’s largest pharmacy retailer, Chemist Warehouse Group to manage the dispensing of its cannabis products starting with Bod’s unique, pharma-grade CBD oil MediCabilis™. Following the release of this news, the share price of the company increased by 7.143 percent as on 9 November 2018.
MediCabilis™ is Bod’s proprietary, pharmaceutical-grade cannabis extract (ECs315), in oil form, available under TGA’s Authorized Prescriber and Special Access Scheme Category B. Further, Bod is planning to start a comprehensive education and support program for patients, physicians and relevant pharmacies to make sure that these groups are fully informed of the benefits of medicinal cannabis and how to utilize it efficiently. The company is also pursuing additional agreements with wholesalers and pharmacy groups so that medicinal cannabis is available to other approved pharmacies.
As per Bod’s CEO Mr. Jo Patterson, the company is looking forward to progressing its education initiatives with the Chemist Warehouse Group to ensure medicinal cannabis is prescribed and used responsibly and efficiently. He further added that the company would continue to target additional pharmacy groups and potential distribution partners to drive product uptake.
In the recently released September quarter report, the company reported that sales for the first four months of FY 2019 totaled $536,000. Sales for the September quarter were $193,000 with sales of $343,000 for the individual month of October. The company generated a record revenue during the month of October which has been achieved with the assistance of recently appointed Chairman, Mr. George Livery and Executive Director, Mr. Stephen Thompson. Both of them were appointed on 1 September 2018, and the company will continue to leverage their established networks to generate additional sales and distribution deals. In the September quarter, the net cash used in operating activities was $1.5 million and the cash and cash equivalent at the end of the quarter was $1.598 million.
In the September quarter, the company started its Phase I Clinical Trial to test the safety, tolerability, and pharmacokinetics of its cannabis wafer product. The company is expecting to finalize the trial by the end of CY 2018, which will grant it access to a unique, standardized, reproducible and patent-protected cannabis product, which can be sold domestically, internationally or licensed to large-scale pharmaceutical companies on a global scale.
The company’s board and its management are exploring multiple opportunities around the sale, export and licensing of its cannabis wafer product as well as Phase II Clinical Trial to evaluate specific indications such as chemotherapy-associated nausea and vomiting, epilepsy and anxiety. The company also reported that it has been successful in accessing R&D grants to offset costs and it is expecting to receive approximately $0.45m in grants before the end of CY 2018, significantly reducing expenditure.
In the last six months, the share price of the company increased by 23.08 percent as on 8 November 2018. BDA’s shares traded at $0.600 with a market capitalization of around $38.38 million as on 9 November 2018 (AEST 4:00 PM).
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