Sales of Bod Science’s MediCabilis CBD product range fell sharply during the first half of FY23 with the company attributing the decline to the rising demand for THC flower.
Medicinal cannabis revenue slipped 29% to A$578,000 while the firm shifted 37% fewer units between July and December.
Despite the disappointing performance, Bod said it was holding its share of the CBD market and was “reviewing opportunities to grow the total addressable market”, including the launch of a CBG product in Australia.
Sales of CBD and hemp product to global partner Health & Happiness also declined sharply, down 59% to $279,000, while non-CBD health and beauty revenue fell 26% to $242,000.
Bod blamed said the H&H decline on the slower-than-expected acceleration of European cannabis reform.
Total revenue for the period dipped 28% to $2.48m – which included a R&D tax rebate of $1.35m – leading to a loss of $3.17m, up 46% on the first half of FY22.
The deepening loss saw shares fall almost 11% in Friday trading, closing at $0.065c.
Bod attributed the increased deficit to a $648,000 rise in R&D costs associated with its schedule 3 trial and investments in its recent acquisition, Aqua Phase.
The company held close to $3.9m in cash and cash equivalents at the end of the period which it said provided “significant financial flexibility to progress its clinical trial initiatives and international expansion opportunities across its medicinal cannabis and CBD and wellness product suite”.
Bod managing director Jo Patterson has spoken of the “enormous potential” of Aqua Phase, a UK invention that aims to increase the therapeutic value of CBD through its delivery technology.
“Most CBD oil is suspended in MCT oil and the scientific literature says the absorption is between 6% and 8%. We think that Aqua Phase, at a minimum, is going to be greater than 30%,” she told Cannabiz last year.
In its H1 FY23 presentation, Bod said it intends to use the invention as a delivery mechanism for its current and future portfolio of CBD drinks and medicinal cannabis products “as well as having the potential to generate revenue from licensing the technology”.
If successfully commercialised, the company said it expects finished products to be presented in multiple formats including bulk powders, capsules, creams, fast dissolves and concentrates.
