Avecho Biotechnology cut first half losses by 55% and reported a revenue rise of 185% following improved sales of its skincare ingredient, Vital ET.

Revenue climbed to A$758,000 in the six months to June 30, with sales to distribution partner Ashland primarily responsible for the rise.

Avecho CEO Dr Paul Gavin

Losses more than halved to $777,000 while expenses decreased 31% to $1.6m, largely due to lower research and development costs. The company said it has $3.19m in cash and cash equivalents.

Avecho, which has a market capitalisation of $23.89m, said its key focus remains the development of a CBD soft-gel capsule for over-the-counter registration. A study design for an insomnia-related indication has been completed and is awaiting ethics approval, the company said.

During the six month period, Avecho released “outstanding” results of a phase II clinical trial which studied the effects of topically-applied CBD on osteoarthritis of the hand, while it entered a licencing and supply agreement with Team SAAS for the use of its TMP formulation in recreational products in the US.

Shares in Avecho fell 7.7% to $0.021 cents.


AusCann is selling its R&D facility in Wingara, WA as its unaudited financial report for FY22 revealed a net loss after tax of A$26.36m, up 205% on FY21.

Revenue climbed 10% to $2.02m, including $428k in rental income for the facility, which is currently leased to Source Certain International.

Cash and cash equivalents declined by $7.96m to $5.72m in FY22. 

Spending included $5m in payments to partner European Cannabis Corporation for the construction of additional greenhouses, expansion of manufacturing capabilities and exclusive rights to the commercialisation of medicinal cannabis products in Australia and New Zealand.

The company is currently in a trading halt pending an announcement on a proposed acquisition.

Zelira Therapeutics

Zelira Therapeutics has said it continues to make progress on its clinical drug strategy despite sliding further into the red.

The company saw revenues climb 132% to A$1.5m in the 12 months to June 30, 2022 – primarily generated in the US – but losses hit $12.4m, up 45% on FY21.

The company said the spiralling deficit “mainly reflects the research and development activities of the group as well as employee and administrative costs”.

Oludare Odumosu: significant progress

Operating costs increased 9% to $9.4m.

Managing director and chief executive Oludare  Odumosu said the firm has made “significant progress”.

“We launched several new products, entered new and highly regulated global markets and made significant advancements in clinical validation,” he said. “Clinical validation remains core and critical to our growth strategy.”

He added the company was seeing accelerated regulatory reform, with “highly regulated markets increasingly approving clinically validated cannabinoid-based medicines”.

Zelira generates revenue from its prescription medications Hope and Zenivol, which target autism and insomnia respectively, and its oral and dermatology over-the-counter products.

Elixinol Wellness

Elixinol reduced losses to A$7.1m in the first half of its financial year, down more than a third on the previous corresponding period.

But revenue also declined by a third, falling to $3.2m, although the company said sales had picked up in the second quarter, rising 13% on Q1.

In the six months to June 30, Hemp Foods Australia generated revenue of $1.7m, down from $1.9m, while US sales fell from $2.6m to $1.5m.

Elixinol will focus on plant-based food rather than CBD

Elixinol, which earlier this month announced it was shifting its focus away from CBD to plant-based wellness products, said operating expenses had also reduced from $8m to $5.3m as part of “ongoing cost optimisation”.

Global chief executive Ron Dufficy described the result as a “significant improvement” on previous half year performances.

“[We] are entering the second half of FY22 with new products coming to market, a much leaner operating structure and an improving revenue position,” he said.

“As we move deeper into the second half of the financial year we will maintain our focus on driving towards profitability, and we have a number of additional initiatives in place to drive growth in our key markets of the US and Australia.”

Elixinol ended the period with $6.9m in cash with a further $1.6m expected from one-off US Covid relief measures.

Shares jumped 5.7% this afternoon (Tuesday) to $0.037 per share.

Cann Group

Cann Group saw losses deepen in the 2022 financial year despite a near-50% increase in revenue.

The company generated sales of A$6.4m, up from $4.3m, but losses increased from last year’s $25.1m to $26.5m.

But with its Mildura facility now up and running, and its southern facility completing its first release of dried flower, Cann Group said it was preparing for revenue growth.

A review of its operations to “maximise opportunities” at Mildura is underway.

“Cann Group has commenced FY23 with a clear focus on building sales revenue,” the company said.

It said Mildura has the ability to cultivate, extract, manufacture and test products, while extraction equipment and Satipharm manufacturing lines have also been added.

Chief executive Peter Crock said: “The Mildura project represents a substantial investment and an asset that must be fully utilised to capitalise on its capabilities and production efficiencies.

“When operating at near capacity, Mildura operates at a cost base that makes Cann globally competitive and facilitates a step change in margins and profitability.

“We now see opportunities to streamline our operations and consolidate activity at Mildura while ensuring we fully resource our sales and marketing in an effort to quickly build revenue.”

Incannex Healthcare

Incannex losses climbed to A$14.9m in FY22, up 31% on FY21’s $11.37m. While the firm generated no income from cannabinoid oil sales in the financial year, it did report $789k from a refundable R&D tax offset and interest.

In its preliminary final report, the company said it finished FY22 with a strong cash balance of $37.5m, up from $9.1m in FY21.

During the reporting period, it deployed $5.4m to progress its pipeline of clinical assets, representing one third of total expenditure.

Incannex also conducted R&D for synthetic cannabinoid pharmaceutical products and psychedelic medicines. To fund that activity, it completed a shareholder loyalty option issue to raise $23.6m.

Creso Pharma

Creso has reported group revenue of A$4.32m for the half-year ending June 30, 2022, a new record high and up 42% on H1 2021’s $3.03m.

Losses narrowed to $7.09m, a 63% improvement on the $18.97m loss recorded in the previous corresponding period which it attributed to strategic cost control.

The firm said the delivery of record revenue with lower expenditure aligned with its key objective of accelerating the pathway to a cash flow positive position.

The figures do not include Sierra Sage Herbs, which was acquired following the end of the reporting period.

Since then, Creso has also strengthened its balance sheet with firm commitments for a $7m equity raise and made a non-binding indicative proposal to acquire Health House International in an all-scrip deal valued at $4.6 million.

Medlab Clinical

Medlab Clinical recorded revenue of A$6m for FY22, up 35% on FY21, while narrowing losses after tax to $7.2m, down 42% on the previous year.

The firm received a $3.14m refund from the government’s R&D tax incentive scheme during the financial year, with a further $3.5m expected in September/October 2022.

It said further R&D support via an Advance and Overseas Finding for development of its Nanabis product covering around $27m of future expenditure would “significantly extend the company’s cash runway”, as well as its overall financial performance.

Rua Bioscience

NZX-listed Rua Bioscience has reported a loss before tax of NZ$7.49m in FY22, up from $6.17m in FY21. The company said the loss was largely attributable to investment in R&D and product development. 

Outgoing Rua Bioscience chief executive Rob Mitchell

It said it remains well capitalised with $9.94m cash, cash equivalents and investments on hand at the end of the reporting period, compared to $16.4m in FY21.

Chief executive Rob Mitchell said Rua had met key milestones during the year, progressing its entry into European markets, acquiring Zalm Therapeutics, launching its first product in New Zealand and a compassionate access program.  

He added Rua will launch a range of new medicines in FY23 while the Zalm acquisition provides a long-term supply contract for GMP-grade medicinal cannabis and creates a strong platform for the company to deliver its strategy.

“Combining speed to market with long-term preferential access to substantial volumes from our cultivation partner Cann Group will allow Rua to build a meaningful market presence faster and with a greater economy of scale,” Mitchell said.

During the reporting period the company achieved GMP certification, enabling manufacture of its first product, and extended its narcotics licence (through Nimbus Health) for the distribution and marketing of its first product in Germany.

Mitchell will retire in September after nearly three years in the role. Board director Anna Stove will lead the business as managing director while the board looks to appoint a new CEO.

Steve has reported for a number of consumer and B2B titles over a journalism career spanning more than three decades. He is a regulator contributor to health journal, The Medical Republic, writing on...

Prior to launching Cannabiz, Martin was co-founder and CEO of Asia-Pac’s leading B2B media and marketing information brand Mumbrella, overseeing its sale to Diversified Communications in 2017. A journalist...

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