Little Green Pharma will launch more flower product into the Australian market following the rise in popularity of the dosage form.
The company said it had noted a “distinct shift” towards flower and is working on developing more strains for release in the 2023 financial year.
The product pipeline was outlined in its annual report in which the Perth-based operator also admitted sales from its Danish facility had been slower than expected.
LGP’s focus on flower comes as figures from the Therapeutic Goods Administration show flower accounted for 37.5% of approved SAS-B prescriptions in the first five months of 2022. June’s figures have yet to be released.
In its report to shareholders, LGP said the Australian market is “continuing to evolve with a distinct shift towards cannabis flower products as a preferred dosing formulation”.
Its launch of three flower products over recent months will be followed by additional strains before the end of March 2023, the firm said.
Writing in the report, chief executive Fleta Solomon described the nine-month financial year to March – shortened by three months to reflect a change in its reporting structure – as “outstanding”.
She said the company is working on more than 20 strains at its Danish facility, all at various stages of development. Deals with Four 20 Pharma and Demecan in Germany, and Sana Life Sciences in the UK, are “testimony to the success of the program”, Solomon said.
“Our secret sauce is the shared development of bespoke flower strains sold exclusively to key purchasers in high-volume jurisdictions such as Germany, paired with continued roll-out of LGP-branded oil and flower products in the same jurisdictions,” she said.
“This European presence also allows the group to compete in markets not previously available such as Italy, Portugal and Scandinavia while dramatically reducing approval time, logistics and costs.
“Importantly, it positions Little Green Pharma perfectly to take advantage of significant new markets in France, Italy and Poland as they either grow or open up in the future.”
Revenue of A$10.m was 50% above the previous 12-month period, helped by a 72% increase in international sales and a 21% increase in prescriber numbers in Australia.
However, losses deepened to $20m, largely due to a $14m investment in research and development, LGP said.
The company also acknowledged sales from its Danish operation “did not ramp up as quickly as expected” although the facility is “capable of scaling to meet almost any third-party demand”.
LGP shares rallied 42% over the past five days to $0.32 per share.