Creso Pharma Ltd (ASX:CPH) (FRA:1X8) (OTCMKTS:COPHF) has completed all required importing and exporting procedures and successfully delivered the second shipment of cannaQIX® products to Lupin International Ltd’s (NYSE:LUPIN) subsidiary, Pharma Dynamics South Africa.
The delivery of the second purchase order valued CHF220,000 (around A$320,000) follows the company’s successful launch into the South African market in collaboration with Pharma Dynamics.
Pharma Dynamics launched the cannaQIX® regular products during the second quarter of 2020 and is marketing it under the ‘Cannamics’ brand.
cannaQIX® is Creso Pharma’s range of cannabidiol (CBD) hemp oil-based nutraceuticals, containing a broad spectrum of organic hemp oil extracts with CBD to improve management of stress and support mental and nervous functions.
Looking forward to further growth
Creso Pharma commercial director Jorge Wernli, said: “We are excited about the completion of this second-order from Pharma Dynamics, which has underpinned a very successful launch of cannaQIX® under the Cannamics brand in South Africa.
“cannaQIX® has been developed using Good Manufacturing Practice standards and is standardised and user-friendly.
Strength and formulation allow for precise dosage control and the lozenge form is more palatable than many other oils on the current market.
“We have no doubt that it will continue to be well received by consumers in South Africa.
“We are very proud of having accomplished this delivery in spite of the current restrictions in place, mainly due to the COVID situation.
“We are looking forward to further growth throughout South Africa and other territories together with Pharma Dynamics.”
Recurring revenue model
Pharma Dynamics distributes Creso Pharma’s hemp-based products across South Africa, with plans to extend the distribution to Namibia, Botswana, Zimbabwe, Swaziland, Lesotho, Angola, Mozambique and Uganda
Creso Pharma is confident that additional opportunities will materialise in Africa in the coming months.
It continues to work with Pharma Dynamics to establish a broader footprint in the region and anticipates purchase orders to grow in size and volume.
Creso Pharma is extremely pleased with the swift timing of the second purchase order and delivery, demonstrating a healthy relationship and positive patient response.
The company believes there will be more purchase orders from this region in a sustainable way.
This underpins Creso’s current global growth trajectory and its entry into new markets towards a recurring revenue model.
New exciting opportunities
As of December 31, 2020, Creso Pharma retained a healthy cash balance of more than A$6 million.
Since that date, the company has received an additional A$1.7 million following the exercise of options, giving Creso a robust bank balance to cater to the group’s current operations, and fund the expansion into new markets.
The current sales and revenue announced is very encouraging and this robust bank balance further demonstrates the group’s financial foundation to continue to win market share as well as to be in a position to easily capitalise any potential further international growth opportunities.
There are a number of new, exciting opportunities the company is working on which will be announced in due course.
Lupin International is ranked as the fifth-largest generic pharmaceutical company in South Africa and it provides high-quality generic medicines at affordable prices.
Pharma Dynamics has a growing range of over-the-counter products including medications for cold and flu, allergy, and digestion, as well as immune booster wellness products.
Its products are consistently prescribed and recommended by leading doctors and pharmacists countrywide.