FinancialNewsMedia.com News Commentary
PALM BEACH, Fla., April 11, 2023 /PRNewswire/ -- The COVID-19 pandemic and associated social distancing norms and lockdown affected all industries globally. Although the COVID-19 pandemic negatively impacted sales of various product categories, major cannabis pharmaceutical brands witnessed positive growth in sales. Wide-scale applications of cannabis in various medical applications are driving the market. For instance, cannabis is widely used for treating patients suffering from chronic conditions, such as Parkinson's disease, cancer, arthritis, and Alzheimer's disease, as well as neurologic problems such as depression, anxiety, and epilepsy. Moreover, there is a growing disease burden of chronic pain and pain management therapies. This, in turn, is increasing cannabis product consumption as it is effective in pain management. A report from Grand View Research projected that the global cannabis pharmaceuticals market size is expected to expand at a compound annual growth rate (CAGR) of 104.2% from 2022 to 2028 while Researchandmarkets predicts the global cannabis pharmaceuticals market size is expected to reach USD $127.1 billion by 2028. Active in the markets this week include: Brains Bioceutical Corp, Trulieve Cannabis Corp. (OTCQX: TCNNF) (CSE: TRUL), Curaleaf Holdings, Inc. (OTCQX: CURLF) (CSE: CURA), Tilray Brands, Inc. (NASDAQ: TLRY) (TSX: TLRY), Jazz Pharmaceuticals (NASDAQ: JAZZ).
The Grand View Research report said: "There is increasing legalization and decriminalization of cannabis in various countries owing to its therapeutic effects. For instance, medical cannabis is legal in countries such as the U.S., Canada, the U.K., Croatia, Czech Republic, Cyprus, Columbia, Chile, Australia, Barbados, Denmark, Finland, Poland, and Portugal among others. Moreover, a continuous political movement supporting cannabis legalization is driving the market for cannabis pharmaceuticals… according to Leafly, a leading cannabis website. Governors of various states in the U.S. declared cannabis an essential product. Moreover, many retail stores and dispensaries started offering cannabis products through the online sales channel. Thus, increasing consumption of cannabis products is estimated to positively impact market growth. Stakeholders in the cannabis industry and research institutes are undertaking various research studies to prove various claims made on CBD products which in turn is driving the market for cannabis pharmaceutical. Key players operating in the market for cannabis pharmaceuticals are adopting various strategies such as mergers and acquisitions and product development to expand product portfolio and geographic presence."
Latest Developments From Around the Industry Include:
Prati-Donaduzzi Secures the Largest Global Pharma Supply Agreement for Natural Cannabinoids with API Manufacturer Brains Bioceutical - Brains Bioceutical Corp ("Brains Bio" or the "Company"), the largest natural cannabinoid active pharmaceutical ingredient ("API") manufacturer in the world, has signed a landmark supply agreement with Prati-Donaduzzi, one of the largest drug manufacturers in South America, to supply natural EU-GMP CBD API ("CBD API") for their ongoing clinical trials and cannabinoid products approved by Agência Nacional de Vigilância Sanitária (ANVISA), Brazil's Health Regulatory Agency.
"We have built a very strong foundation via our renowned science team and commercial production capability to produce the world's purest natural sourced cannabinoid API molecules. Accordingly, we are thrilled that this has allowed us to expand our long-standing relationship with an industry leader, Prati-Donaduzzi. We will continue to supply our high-quality natural CBD API for Prati-Donaduzzi's clinical trials and cannabinoid products, which we expect will ultimately culminate in market-authorized prescription (Rx) medicines. This supply agreement is a landmark moment in the history of the pharmaceutical cannabinoids industry. This outcome is the culmination of respective efforts as leading innovators in the space. This makes Brains Bio an important partner for Prati-Donaduzzi as they continue to lead and pave the way in cannabinoid medicines and cannabinoid science," said Ricky Brar CEO and Chairperson of Brains Bioceutical.
This landmark deal for both companies represents a significant step forward in developing natural cannabinoid-based medicines in the global pharmaceutical industry. Brains Bio is a cutting-edge manufacturer of natural cannabinoid APIs, with the largest cannabinoid API production facility in the world, built for global capacity to supply customers throughout their drug development lifecycle and subsequent commercialization of their future cannabinoid-based market-authorized drugs.
Prati-Donaduzzi is a leader in the pharmaceutical industry in South America, with a reputation for innovation and excellence in drug manufacturing and pharmaceutical development. The company has one of the largest portfolios of generic drugs in Brazil and supplies both South American and global markets. They are also the largest distributor of cannabinoid-based medicines in South America, having conducted over five years of research and development in cannabinoid innovation and drug development.
"We believe that quality cannabinoid-based medicines have enormous potential to improve the lives of millions of people around the world," said Eder Fernado Maffissoni President at Prati. "A successful pharmaceutical product requires, amongst other things, a high-quality, standardized API and a robust supply chain. By partnering with Brains Bioceutical, we can continue to lead in this emerging category and ensure patients are continuously receiving the highest quality API with Brains Bio's natural EU-GMP CBD API."
Brains Bio is equally committed to advancing the development of cannabinoid-based medicines and supporting clinical trials and advancements in cannabinoid science via the Brains Bio cannabinoid science platform and the Company's newly opened state-of-the-art production facility, designed to deliver the highest standard cannabinoid APIs to the pharmaceutical industry. CONTINUED…. Read this full release for the Brains Bioceutical at: https://brainsbioceutical.com/brainsbio-prati-donaduzzi-supply-agreement
Other developments in the cannabis markets include:
Trulieve Cannabis Corp. (OTCQX: TCNNF) (CSE: TRUL), a leading and top-performing cannabis company in the U.S., recently announced its results for the fourth quarter and full year ended December 31, 2022. Results are reported in U.S. dollars and in accordance with U.S. Generally Accepted Accounting Principles unless otherwise indicated. Numbers may not sum perfectly due to rounding.
Q4 2022 Financial and Operational Highlights Were: Revenue of $302 million, with 2% retail revenue growth and 96% of revenue from retail sales; Achieved GAAP gross margin of 50%, with gross profit of $150 million; Reported net loss of $77 million. Adjusted net loss of $35 million* excludes non-recurring charges, asset impairments, disposals and discontinued operations; Generated adjusted EBITDA of $85 million*, or 28% of revenue. Adjusted EBITDA reflects one time charges, idle capacity, and inventory reduction tied to cash generation efforts; Reduced inventory by $4 million versus $32 million build in the third quarter; Achieved operating cash flow of $55 million and free cash flow of $21 million; Closed $90 million in commercial loans with average interest rate of 7.5% interest; and Opened five new dispensaries in Sierra Vista, Arizona; Hobe Sound, Lake Worth, and Land O' Lakes, Florida; and Huntington, West Virginia and rebranded Trulieve dispensary in Glendale, Arizona.
Curaleaf Holdings, Inc. (OTCQX: CURLF) (CSE: CURA), a leading international provider of consumer cannabis products, today announced the completion of its previously announced acquisition of Deseret Wellness ("Deseret"), the largest cannabis retail operator in Utah (the "Transaction"). With the close of the Transaction, Curaleaf's retail footprint has increased to four dispensaries in Utah and 150 nationwide.
Boris Jordan, Executive Chairman of Curaleaf, stated, "Deseret is an excellent strategic fit for Curaleaf as we continue to expand our retail footprint in key emerging markets. This transaction enables to better serve Utah's rapidly expanding medical program, which recorded a record-breaking US$118.7 million in sales last year. On behalf of the Board of Directors and management team, I am pleased to officially welcome Deseret to the Curaleaf family."
Tilray Brands, Inc. (NASDAQ: TLRY) (TSX: TLRY), a leading global cannabis company inspiring and empowering the worldwide community to live their very best life, recently announced that its medical cannabis division, Tilray Medical, has expanded its European footprint across the Czech Republic through a new export and distribution partnership with Cansativa Group. The new strategic partnership broadens Tilray Medical's distribution of EU-GMP certified medical cannabis products across pharmacies and hospitals to support medical cannabis patient care.
Denise Faltischek, Chief Strategy Officer and Head of International, Tilray Brands, Inc. said, "We are extremely proud to broaden our distribution across the Czech Republic and offer our EU-GMP certified medicinal cannabis products to help support medical cannabis patients in need. Our Tilray Medical team remains dedicated to patient advocacy across our international markets by providing quality medicinal cannabis for commercial, compassionate access, and research purposes."
Jazz Pharmaceuticals (NASDAQ: JAZZ) announced the completion of its acquisition of GW Pharmaceuticals plc ("GW"), a leader in the science, development and commercialization of cannabinoid-based prescription medicines.
"We are excited to welcome our GW colleagues to Jazz as we mark a transformative milestone in creating an innovative, high-growth, global biopharma leader in neuroscience with a worldwide commercial and operational footprint," said Bruce Cozadd, chairman and chief executive officer of Jazz Pharmaceuticals. "The addition of GW further diversifies our commerical portfolio and innovative pipeline with therapies that are complementary to our existing business, including Epidiolex, a high-growth commercial product with near-term blockbuster potential. We are fortunate to be combining two companies that share a passion for, and track record of, developing differentiated therapies that advance science and the care of patients with often-overlooked diseases. We look forward to building an even stronger company together and are excited about the greater impact we will continue to drive for patients, customers and shareholders."
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