Australian medical cannabis company Little Green Pharma (ASX:LGP) reported a strong quarter for revenue in the period ending September 30, 2021.
The company said it generated unaudited revenue of $3.18 million for the quarter and achieved a record sales month in September ($1.39 million). Just as a comparison, LGP generated $2.2m for FY 20 and $7m in FY 21 – so it seems on track for have a cracker of a year this financial year in this respect.
For the September quarter, LGP says it also acquired 4,580 new patients, up 39% on the previous quarter, and another 110 new prescribers – a 46% increase. Again, to compare against previous financial years, the company acquired 3,895 patients for the full FY20 and 10,635 in FY21.
Elsewhere it has been reported the company estimates it holds around about 20% of the medicinal cannabis market in Australia at the moment.
There was significant spending by LGP during the period on items such as increased costs associated with its Denmark Facility (EU), expansion of marketing and the purchase of land associated with its Western Australia site (~$6 million; $4 million cash and balance of consideration in scrip).
There was a decrease in research and development spend during the quarter while the company focused on integrating the Denmark venture, which is a 21,500m2 cultivation and 4,000m2 GMP manufacturing facility capable of producing over 20 tonnes of medicinal cannabis biomass per annum (~12 tonnes p.a. of dried flower). LGP says discussions with multiple European distributors and offtakers for supply from this facility are progressing.
Little Green Pharma’s indoor cultivation and manufacturing facility located in Western Australia is capable of producing ~3 tonnes of medical cannabis biomass annually (~1.5 tonnes p.a. of dried flower).
The company expects to see operating cash flow improvements in the current quarter through continued increased sales here in Australia and more sales in the EU. It also expects collections of outstanding receivables, plus receipt of an R&D rebate of approximately $1.8 million.
The firm has also stepped outside the cannabis space, acquiring a Schedule 9 licence to supply psilocybin in early September.
LGP’s latest quarterly activities report can be viewed here.
