NEW YORK, Aug. 14, 2020 /PRNewswire/ -- There are numerous incredible innovations scientists and researchers have made in biotechnology in recent years. Among the fields of study are gene editing, tissue engineering and regeneration, nanobiotechnology and many others. In addition, new segments under the biotech umbrella are constantly being created. For instance, the medical cannabis segment that has emerged in recent years. Now, medical cannabis products are used for the treatment of various chronic conditions such as cancer, arthritis, and neurological conditions, such as anxiety, depression, epilepsy, as well as Parkinson's and Alzheimer's disease. Such a wide scope of applications is also anticipated to further expand the target demographic of the market. As a result, the global legal cannabis market size is expected to reach USD 73.6 Billion by 2027, according to a new report published by Grand View Research, Inc. Furthermore, it is anticipated to expand at a CAGR of 18.1% during the forecast period of 2019-2027. MediPharm Labs Corp. (OTC: MEDIF) (TSX: LABS), Sorrento Therapeutics, Inc. (NASDAQ: SRNE), Zynerba Pharmaceuticals, Inc. (NASDAQ: ZYNE), Village Farms International, Inc. (NASDAQ: VFF) (TSX: VFF), Aphria Inc. (NASDAQ: APHA) (TSX: APHA).
As a segment of the medical cannabis market, there has been a substantial growth in demand for cannabidiol (CBD) products around the globe in recent years, mainly in developed countries such as the U.S., France, Canada and the Netherlands. As a result, various cannabidiol product manufacturing companies have partnered with big retail stores to better supply their consumers. "CBD has a number of known properties beneficial to the human condition, and research is just beginning," Aster Farms President Sam Ludwig told Civilized. "There are two markets for CBD: as a supplement, mild pain reliever and relaxant, and in larger doses, as a truly beneficial remedy for a variety of serious illnesses. There is no doubt it will be dominant supplement for years to come. CBD-heavy flower can be a very effective relaxant for both mind and body. However, people looking for CBD only will find the cleanest and most focused relief in the form of tinctures and capsules. We think the CBD flower market is a trend and will give way to the more concentrated forms. Like an Omega-3 for the body and mind."
MediPharm Labs Corp. (OTCQX: MEDIF) (TSX: LABS) announced breaking news yesterday, "its financial results for the three and six months ended June 30, 2020.
"The first half of 2020 was a transformative period in which we substantially strengthened our balance sheet and liquidity, secured new international customer supply agreements and delivered material, sequential improvements in key financial and operating metrics," said Pat McCutcheon, CEO, MediPharm Labs. "Our strategy to manufacture multiple products for multiple customers in multiple jurisdictions is on track. We are very encouraged with the pace of MediPharm Labs' transformation from a domestic to a global company."
"Q2 featured a 25% improvement in revenue and a strong recovery in gross profit and margin from Q1 – without a meaningful change in Canadian recreational cannabis market conditions," said McCutcheon. "This improvement was achieved on the back of a solid increase in product deliveries, expansion of our vapes and oils SKUs, the launch of our own CBD brands and tight spending controls. At the same time, we accelerated our international growth strategy – successfully commercializing our Australian operations, increasing our total addressable market, winning contracts with customers in growing European and Asia Pacific markets, and developing exciting sales prospects with large pharma and CPG companies."
Q2 FINANCIAL AND OPERATIONAL SUMMARY
BUSINESS AND STRATEGIC HIGHLIGHTS FOR THE FIRST SIX MONTHS OF 2020
MediPharm Labs is creating footholds in medical, wellness and adult-use markets around the world. The Company has remained steadfastly committed to its goal of becoming a leading global manufacturer of pharma-quality cannabis active pharmaceutical ingredients (API) and formulated products for pharmaceutical, consumer-packaged goods (CPG) and direct to consumer brands. To achieve this, the Company has focused on its strategic priorities:
During the second quarter, MediPharm Labs made strong progress against its strategic priorities as highlighted below:
Building Global Strength (multiple jurisdictions)
Transforming from a Domestic to Global CMO (multiple products)
Broadening Global Customer Base (multiple customers)
Strengthening Capabilities and Innovation
Corporate Governance and Board Independence
The Company is in the early stages of substantially increasing its addressable global market based on its ability to serve customers from its multi-jurisdictional, GMP-certified and fully licensed manufacturing footprint. While COVID-19 and the slow development of the retail marketplace in Canada makes it difficult to forecast near-term performance, the Company is confident that the maturation of its international growth strategy, diversification of its customer base and increased emphasis on the creation and distribution of finished formulated products for medical and wellness segments will lead to long-term growth and value creation.
To maximize its competitive advantages, and ensure its international transformation continues to gain momentum, the Company will execute on the following near-term priorities:
Diversifying and igniting growth by:
Maintaining liquidity and financial strength by:
The Company's consolidated financial statements and management's discussion and analysis for the three and six months ended June 30, 2020 are available on SEDAR and on www.medipharmlabs.com. "
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Sorrento Therapeutics, Inc. (NASDAQ: SRNE) announced last year that it had formed a Chinese joint venture, Shenzhen Yunma Biotechnology Co., Ltd. (, with LifeTech Scientific Co., Ltd. to commercialize Sorrento's proprietary water soluble cannabidiol (CBD) formulation technologies for consumer and pharmaceutical applications in Asia (excluding Japan). In addition, Shenzhen Yunma's subsidiary, Yunnan Masheng Health Science Co., Ltd., has obtained a Yunnan industrial hemp plantation permit, as well as governmental pre-approval to establish an industrialized processing, CBD extraction and isolation operation in Kunming (Yunnan Province, China). Sorrento holds 40% of the equity in the Shenzhen Yunma joint venture and LifeTech holds the remaining 60% of the equity. Sorrento has contributed the exclusive license to Sorrento's water-soluble CBD technology for the Asian territory to Shenzhen Yunma. With the hemp and CBD supplies from Yunnan Masheng secured, Shenzhen Yunma will build manufacturing capacity to potentially deliver hundreds of metric tons of CBD annually to the global markets.
Zynerba Pharmaceuticals, Inc. (NASDAQ: ZYNE), the leader in innovative pharmaceutically-produced transdermal cannabinoid therapies for rare and near-rare neuropsychiatric disorders, presented data in March further describing the baseline characteristics of the pediatric and adolescent patients in the fully-enrolled Phase 2 BRIGHT trial of Zygel™ (CBD transdermal gel; ZYN002) in children and adolescents with autism spectrum disorder (ASD), indicating that the trial enrolled a broad population of patients with moderate-to-severe ASD. "ASD is a complex neurodevelopmental disorder characterized by difficulties with behaviors, communication, and social interaction," said Zynerba's Chief Medical Officer, Joseph M. Palumbo. "Pediatric and adolescent patients with ASD may also present with profound clinical anxiety, above the rate seen in neurotypical children, further complicating their condition and treatment regimen. Unfortunately, current ASD management options are restricted to cognitive behavioral therapy and a small number of approved pharmacologic treatments, highlighting the substantial unmet need for novel therapies in this population. We believe that we have enrolled an appropriate population of patients into our well-designed exploratory BRIGHT trial to enable a robust analysis of outcomes to help inform the design of future double-blind, placebo-controlled studies."
Village Farms International, Inc. (NASDAQ: VFF) (TSX: VFF) announced recently that Governor Greg Abbott has signed into law Texas House Bill 1325 (the "Texas Hemp Legislation"), which effectively legalizes the cultivation of hemp and processing of hemp and hemp-derived products, including cannabidiol (CBD) in the State. As previously announced, in anticipation of the passage of the hemp legislation in Texas, Village Farms has begun conversion of half of its 1.3 million square foot, ultra-high-tech Permian Basin greenhouse (which utilizes the Company's proprietary GATES® technology) for cultivation of high-CBD hemp and CBD extraction. The Texas Hemp Legislation will require licenses for both the cultivation and processing of hemp and Village Farms plans to apply for the requisite licenses as soon as it is permitted to do so. No time frame has yet been provided by the State of Texas for the licensing process.
Aphria Inc. (NASDAQ: APHA) (TSX: APHA) announced last year that it had received a cultivation license from Health Canada for Aphria Diamond, the Company's second Leamington, Ontario cannabis greenhouse facility, bringing an additional 1,300,000 sq. ft. of production space with an annual growing capacity of 140,000 kg. Combined with the Company's Aphria One facility and its subsidiary Broken Coast Cannabis, the Company now has more than 2,400,000 sq. ft. of cultivation space capable of reaching a total annualized production capacity of 255,000kg. "We are extremely pleased to receive the licence for our long-awaited Aphria Diamond facility, which more than doubles our Canadian production capacity," said Irwin D. Simon. "Reaching industry-leading production levels coinciding with the expansion into new categories and new opportunities for cannabis in Canada and around the world is a transformative moment for Aphria Inc."
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