Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF)’s Swiss operations have generated revenue of A$817,429 (CHF 552,548) in Q4 2021 – a 126% increase on the division’s revenue over last quarter of A$362,448.
The strong figures are marked by the company’s strengthened partnership with Swiss-based Cannahealth AG, which is marketing and selling its products.
Swiss sales in 2021 have so far added more than A$2.5 million in revenue, with Creso Pharma Switzerland continuing its upward momentum and well placed to exceed last year’s revenues, with a 117% growth so far.
“Creso Pharma’s Swiss operations continue to generate strong revenue to date, which will assist the company in achieving consecutive quarter on quarter and year on year growth,” Creso Pharma non-executive chairman Adam Blumenthal said.
From product development to product focus
“Demand for our human health product suite has increased recently, highlighting Creso Pharma’s ongoing shift from a product development focused company, to a diversified commercial life sciences company with a global reach,” Blumenthal said.
“We anticipate that revenue will continue to increase over the remainder of Q4 2021, when additional purchase orders across Switzerland and Canada materialise.
“The company has a number of business development initiatives underway and remains committed to significantly growing its sales pipeline through international expansion efforts and partnership agreements. The company looks forward to updating its shareholders in the near term, once these opportunities materialise.”
Business development key to continued growth
CPH expects further purchase orders to come in the short term after it broadened its sales pipeline over recent months.
Purchase orders through both its Swiss Operations and wholly-owned Canadian subsidiary, Mernova Medical Inc. as well as a strategic collaboration with Cannahealth and additional growth initiatives, should help to continue to improve its bottom line.
Creso Pharma has entered into a strategic collaboration agreement with Cannahealth, for the supply of hemp and cannabis plant material as well as the marketing and sales of Creso Pharma’s products in Switzerland, where it has an established sales network.
Cannahealth is generating pleasing sales growth and both Creso Pharma and Cannahealth are in discussions to potentially expand the products reach further into Europe at a later phase.
The companies have a one-year agreement that will automatically renew.
Creso Pharma’s cannaDOL® launch campaign has also made a big impact, with the new cannaDOL® gel products now being listed in an increasing number of wholesalers that deliver to more than 2,500 retailers in Switzerland.
Creso has received initial cannaDOL® orders from several pharmacies, which is expected to lead to rapid uptake.
The company continues to engage in promotional initiatives for the 'Born to Move' cannaDOL® range through key wholesalers, pharmacies, drugstores, fitness centres and through e-commerce mailings. Additional growth is expected to materialise over the medium term.