Avicanna Inc (TSX:AVCN, OTCQX:AVCNF) has announced its results for the three-month period ending September 30, 2022, which showed revenue growth of 42% year-on-year.
“During the third quarter, we successfully completed a complex technical and regulatory transfer of a sizable portion of our Canadian products, which we deemed necessary for scale-up and improvement of margins in the long term,” said Aras Azadian, CEO at Avicanna in a statement.
“Additionally, we prepared for the launch of several new proprietary SKUs and attained several new commercial listings which, combined with production enhancement efforts, are expected to yield significant commercial progress during the fourth quarter. In parallel, we continued to work on our intellectual property portfolio and made progress on our R&D and clinical development efforts related to developing our pharmaceutical pipeline, which remains our long-term focus,” added the CEO.
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“Internationally, we continued to make progress through new partnerships and international markets for our portfolio of products and are making progress towards regulatory approvals of our sanitary pharmaceutical preparations in South America.”
The tech transfer and product re-registrations resulted in short-term stocking gaps and lower-than-expected revenues in late Q2 and Q3, Avicanna noted, but said these issues have been addressed, with technical transfer, re-stocking of SKUs, in addition to several new product launches completed by early Q4.
Selling, general, and administrative expenses were reduced by 16% in the third quarter, and Avicanna said it also realized “significant improvement” in margins through its scale-up efforts and through licensing revenues.
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