CV Sciences Inc (OTCMKTS:CVSI) saw its revenue more than double in 2018 and swung to a profit as the passage of the 2018 Farm bill in the US advanced its business and opened up new channels of distribution.
Last year, the Las Vegas cannabidiol company’s revenue jumped to $48.2 million, up from $20.68 million in 2017, helped by an increase in distribution and demand for CBD products. Indeed, the company’s launch of new CBD gel, capsules and gummies drove sales higher, according to its release.
Its net income in 2018, meanwhile, came in at $10 million as the company’s fortunes reversed course from a loss of $4.9 million in 2017. And its cash position also climbed to $12.7 million by the close of 2018 from $2 million at the end of 2017.
READ: CV Sciences is growing a cannabis-based business that's making headway on the pharma and consumer levels
In a statement, CEO Joseph Dowling noted the almost immediate impact of last year's passage of the US Farm bill, which has legalized hemp and hemp-based products in the US.
“The December passage of the 2018 Farm Bill has further broadened consumer and retailer interest in the hemp CBD product category and we are seeing significant new interest from nearly all challenges of distribution,” said Dowling.
“We finished 2018 with strong sales momentum and enter 2019 well positioned to capitalize on the rapidly growing consumer awareness and broad-based demand for hemp CBD products,” Dowling added.
The company’s specialty pharmaceutical business focuses on developing synthetic cannabinoids to treat a variety of medical conditions.
CV Science’s lead drug candidate, CVSI-007, is a cannabidiol (CBD) and nicotine combination therapy designed to support the cessation of smokeless tobacco addiction. The company plans to file an investigational new drug application with the US Food and Drug Administration for the drug this year.
CV Sciences operates two divisions: a consumer-product group focused on the manufacturing and sale of hemp-based CBD products and a drug development division that develops therapies using CBD.
The company’s PlusCBD brand is now available in over 2,000 US stores. The Las Vegas company’s natural product retail network now includes 2,238 stores in the US as of December, up from 1,548 stores at the close of 2017.
CV Sciences shares held steady at $4.99 as Wednesday's trading session got underway.
Contact Ellen Kelleher at [email protected]