CanniMed Therapeutics (CMMDF) reported that its sales rose 41% to $4.8 million from last year’s $3.4 million for the same time period. The company said that rising demand for dried medical cannabis caused those sales to jump 33% to 455kg with an average selling price of $10.56.
Net earnings for the first quarter were $5.3 million and according to the company statement, included a $23.6 million gain on derivative instruments (Q1 2017 – $3.9 million net loss, including a $2.4 million loss on derivative instruments) that was partly offset by transaction costs of $13.1 million (Q1 2017 – $nil) and a mark to market loss on marketable securities of $2.2 million (Q1 2017 – $nil).
“CanniMed’s continued success reflects our accomplished team that always strives for excellence and remains focused on high-quality products from GMP compliant production practices,” said Brent Zettl, CEO, CanniMed. “This past quarter we have met many key milestones, including new product introduction and capacity growth. Now, as CanniMed transitions and integrates with Aurora Cannabis, I am confident that our tremendous people will continue to serve our customers well and help Aurora to realize even greater accomplishments.”
Readers may recall the epic battle that took place between Aurora Cannabis (ACBFF) and CanniMed Therapeutics. Last week, Aurora announced that it had completed its initial take up of common shares. Aurora extended the period in which shareholders of CanniMed may tender their shares under the offer to March 25, 2018.
CanniMed is targeting production expansion which is estimated to reach 17,000 to 21,000 kg within the next 24 months. The company launched CanniMed Topical Cream, a new product that has been formulated to provide relief from pain and inflammation and began fulfilling orders and shipping Topical Cream Kits.
The company is also prepared to commence sales of cannabis oil capsules, in anticipation of Health Canada approval in the second quarter of 2018.
During the first quarter of fiscal 2018, CanniMed announced that it had entered into an international marketing and distribution agreement with leading global pharmaceutical compounding company Fagron NV.