Shares kick on open as BOD Australia releases double dose of good news
Medicinal Cannabis, CBD and hemp healthcare products company, Bod Australia Limited (ASX:BDA) has provided a promising update on its new medicinal cannabis product launch, as well as highlighting recent MediCabilisTM prescription growth in the United Kingdom.
Such was the positive response to today’s news that the company’s shares traded approximately 9% higher shortly after the market opened.
BDA is launching a new cannabigerol (CBG) product, which will be sold under the MediCabilis brand as MediCabilisTM CBG 50 in the United Kingdom.
CBG is a non-intoxicating cannabinoid compound in the cannabis plant, which holds strong therapeutic potential for use in broad therapeutic applications.
Preliminary research indicates that CBG has unique pharmacological actions and has the potential to address alternative therapeutic areas to THC and CBD.
CBG has a different chemical structure to CBD and THC and will bind onto specific cell receptors for different therapeutic targets.
BDA is launching the product following R&D assessments, with the introduction being part of the management’s approach to developing specific cannabis cultivators and product formats for current and future new product development.
The market for CBG is in its early stages and is expected to grow significantly in the coming years.
First mover advantage with CBG 50 offers competitive benefits
The launch of MediCabilisTM CBG 50 will provide BDA with a first-mover position that will provide competitive advantages going forward.
Initially, BDA will focus on launching the product in the UK through select doctors and healthcare physicians.
The introduction of MediCabilisTM CBG 50 is also expected to support incremental market growth across the region, as well as providing additional R&D and clinical research opportunities.
Discussing these developments, chief executive Jo Patterson said, “The launch of a new CBG product, under the widely recognised MediCabilisTM brand will provide the company with a number of opportunities to increase prescription sales and scale up R&D.
"CBG has been reported to be the ‘next CBD’ and has a growing market demand.
"Published scientific literature suggests that CBG has potential anti-inflammatory benefits, so the launch of MediCabilisTM CBG 50 in oil form will provide Bod with an important first-mover advantage in what will become a significant market.’’
Quarter-on-quarter MediCabilisTM prescription growth an impressive 90%
In another positive development, BDA has reported strong quarter-on-quarter MediCabilisTM prescription growth in the UK.
During the March quarter of fiscal 2021, the company filled a total of 59 MediCabilisTM units, marking a 90% increase on the previous quarter (Q2 FY2021 prescriptions: 31).
BDA expects that UK MediCabilisTM prescription volumes will continue an upward trajectory following the launch of the company’s new CBG product, Project Twenty21 scale-up and ongoing educational initiatives to promote the company’s products with approved prescribers in the UK market.
Discussing the group’s strategy in relation to growing market share, Patterson said, "The recent upward trajectory in MediCabilisTM prescriptions is also very pleasing and follows considerable hard work undertaken in collaboration with our distribution partners and approved prescribers in the UK.
"To further scale up UK medicinal cannabis sales, Bod is progressing educational initiatives, as well as working with large industry bodies to grow its market share.
"This is a similar approach to how the company has tackled the Australian market and we expect growth to continue over the remainder of the calendar year and beyond.”