Zelira Therapeutics Ltd (ASX:ZLD, OTCQB:ZLDAF) quarterly reads as a long list of highlights, which is testament to the work it is doing in the development of clinically validated cannabinoid medicines.
The company has not only achieved a record for cash receipts, it has achieved 16% growth on the previous quarter as sales of SprinjeneCBD continue to track well.
“Our company continues to grow revenues with another record for quarterly cash receipts and 16% growth on the previous quarter,” CEO and managing director, Dr Oludare Odumosu said.
“Commercialisation continues to ramp up, with revenue growing as sales gain momentum for current products in market, and new products are launched.
"Zelira is well placed to build on the momentum of the past nine months as we further accelerate our growth initiatives, launching new products and expanding into new geographies and markets via additional distribution agreements.”
Highlights of the quarter
Record quarterly receipts from customers
- 16% growth (on Q4 FY2021) in cash receipts to a record A$362,000; and
- Growth reflects sales of SprinjeneCBD and consulting payments.
Accelerating commercialisation
- Expansion into Germany via exclusive distribution agreement with Adjupharm for Zenivol®; and
- Launched RAF FIVE™ acne treatment products through dermatology focused subsidiary Research underpinning new products.
Research underpinning new products
- Zelira’s observational clinical pain trial received IRB approval in the US.
Zelira is also benefitting from Pershing Securities trading lifting restrictions for cannabis companies and the US$5 million raised (post-quarter-end) from US-based family office, which will help the company accelerate growth initiatives, valuing Zelira and its share of associated entities at A$122.8 million.
New products on the way
Zelira generated record quarterly cash receipts (product sales and licensing payments) of A$360,000 in Q1 FY2022, up 16% on Q4 FY2021 and up 426% on Q1 FY2021.
Growth came via a suite of new products launched in Q1 FY2022 and with further new products aimed for launch in the current quarter, Zelira is well placed to continue this growth.
Having launched Zenivol® into Germany, one of the world’s largest and fastest-growing markets for cannabinoid-based medicines, Zelira is continuing to progress additional licensing discussions for HOPE™ and Zenivol™ in the USA while looking to conclude ongoing negotiations to expand distribution of these products into other global markets including the UK.
Zelira also launched its five-product RAF FIVE™ acne treatment line in the US through its dermatology subsidiary Ilera Derm LLC.
The RAF FIVE™ line is Zelira’s first step into the acne medication market valued at more than US$11 billion worldwide and is the only skincare line in the world to feature Zylorma®, a patent-pending acne-fighting complex developed by Zelira and US board-certified cosmetic dermatologist Dr Karyn Grossman.
“We were excited to launch Zelira’s Dermatology subsidiary and the RAF FIVE™ acne treatment line of skincare products with US board-certified cosmetic dermatologist Dr Karyn Grossman,” Dr Odumosu said.
“Zelira is already known as a leader in cannabinoid research and development for the medical cannabis market, and teaming up with Dr Grossman’s medical expertise alongside our ground-breaking scientific formulations has created a truly new and unique solution of proven acne treatments for the US$11 billion worldwide acne treatment market.”
German expansion
While Zelira has its eye on expanding its presence in the UK, US and Australia, a distribution agreement in Germany was a major milestone.
Zelira signed a 5-year exclusive distribution agreement with IM Cannabis Corp (CSE:IMCC)’s German-based subsidiary Adjupharm, a EU GMP-certified medical cannabis distributor.
Adjupharm will file for formal German government reimbursement for its sales of Zenivol and if received, this will be the first time a Zelira Pharmaceutical (Rx) product receives formal government reimbursement.
In the first half of 2020, over €75 million worth of medical cannabis products were sold in Germany to an estimated patient population of around 120,000, positioning the country as potentially one of the largest markets for global cannabinoid-based medicines.
This distribution agreement – the first outside of the US and Australia for Zelira’s growing Pharmaceutical (Rx) products – follows the June 2021 publication of The University of Western Australia research team’s results from its double-blind, placebo-controlled, cross-over trial of Zelira’s ZTL-101 (Zenivol®) in chronic insomnia patients in SLEEP®, the peer-reviewed benchmark international journal for all sleep-related conditions.
A company backed by research
The quality of Zelira‘s products came into focus when in July 2021, it obtained IRB approval for its 12-week Observational Clinical Study to evaluate the efficacy, safety and tolerability of its proprietary, patent-protected product against a multi-billion-dollar Big Pharmaceutical company drug.
Zelira successfully navigated a unique regulatory path for this trial, with the results due in the first half of 2022.
Zelira continues to lead the world in creating and validating proprietary products such as Zenivol®, with a focus on taking these drugs through regulatory registration.
Capital raise to accelerate growth
In late October, Zelira raised $5 million to accelerate the growth of its products and market penetration.
The funds raised will be used to accelerate Zelira’s growth initiatives, including:
- Clinical development and ongoing trials in Australia and the US;
- Additional licensing for Zelira Rx products and technologies;
- Commercialisation of RAF FIVE™ products with a focus on rapid market penetration; and
- Expansion of Zelira’s SprinjeneCBD footprint in the US and emerging global CBD markets.
Read: Zelira Therapeutics gains substantial new US-based shareholder following US$5 million cap raise
“This capital raise was a strong signal of the fundamental value a sophisticated and experienced investor saw in our scientifically based cannabinoid products that are already in market and coming to market, as well as our growing biopharmaceutical portfolio,” Dr Odumosu said.
“The valuation at which this raising was undertaken highlights the substantial inherent value of our business. Quincy Street was particularly appreciative of our several shots on goal strategy that covers both our prescription [Rx] and Over the Counter [OTC] products.
“With multiple attractive opportunities in front of us, the funds raised provide the capital to more aggressively roll out our growth strategy with a target of reaching financial breakeven by the end of next calendar year.”