BioHarvest Sciences Inc has prepared investors for a sharp increase in fiscal 2022 revenue following the successful over-delivery of its 2021 targets versus the guidance it provided.
The Vancouver, British Columbia-based company said it expects 2022 revenue to be between US$5 million and US$7 million, representing growth of 2.5 to 3.5 times over 2021. It also projects that it will achieve break-even cash flow in 2023 when the business reaches its first scaling point.
For 2022, BioHarvest said it plans to continue to invest heavily in research and development (R&D) as a percentage of total revenue and in building manufacturing capacity for its cannabis vertical in Israel and abroad.
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“The 2022 projected revenue guidance demonstrates the growing demand for our VINIA product and the anticipation for our cannabis solutions,” BioHarvest CEO Ilan Sobel said in a statement.
“Our proprietary BioFarming platform technology creates the opportunity to expand the company's product offering both vertically and horizontally and we look forward to bringing innovative product solutions to the market,” he added.
Consistent with being a biotech innovator, BioHarvest said it will continue to hire additional scientists, conduct further clinical trials, and invest in further strengthening its intellectual property (IP) portfolio. The company recently applied for a new patent related to its cannabis scale-up process, given its success in growing cannabis in industrial bioreactors and achieving a 700% production scaling increase from previous levels.
BioHarvest said it remains the only company in the world capable of growing cannabis trichomes in liquid media leading to cannabis biomass production without growing the plant itself.
“We also plan to start R&D development on a new vertical in 2022 where our platform technology can provide a disruptive solution for unmet consumer needs,” Sobel continued. “For the above reasons, we will continue to make significant investments in this platform that would solidify BHSC as a Biotech innovator and yield healthy long-term growth and profitability.”
BioHarvest Sciences has developed a patented bio-cell growth platform technology capable of growing the active and beneficial ingredients in fruit and plants, at an industrial scale, without the need to grow the plant itself.
Contact the author at stephen.gunnion@proactiveinvestors.com