Avicanna Reports Q3 2022 Financial Statement
14 November 2022 - 11:30PM
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TORONTO, November 14, 2022 (GLOBE NEWSWIRE) —
Avicanna Inc. (“Avicanna” or the
“Company”) (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN),
a commercial stage, international biopharmaceutical company focused
on the commercialization of evidence-based, cannabinoid-based
products, is pleased to announce the filing of its interim
financial statements for the three-month period ending September
30, 2022 (“Q3 2022”).
Management commentary
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. 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.
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, stated Aras Azadian, CEO at Avicanna Inc.
Q3 2022 highlights:
- Financial highlights, while the
company faced stocking gaps caused by the tech transfers in Canada
during Q3 the company is pleased to report a 42% growth in revenue
year-to-year coupled with a 16% reduction of SG&A over the same
period. The company has also realized significant improvement in
margins through its scale up efforts and through licensing
revenues.
- Transfer of manufacturing in
preparation for scale up in Canada, with a view towards supporting
long term Canadian commercialization plans and to diversify sources
of production, the Company transferred the manufacturing of 14 of
its SKUs to three different licensed producers based in Ontario.
The process of technical transfer and product re-registrations
however, resulted in short term stocking gaps and lower than
expected revenues in late Q2 and Q3. The company is pleased to
announce the issues have been variously addressed, with technical
transfer, re-stocking of SKUs, in addition to several new product
launches completed by early Q4.
- Progression of Epilepsy research
including the initiation of pre-clinical research collaboration
with Dr. Mac Burnham and the University of Toronto to analyze the
potential role of specific rare cannabinoids in epilepsy models.
The on-going research on epilepsy is coupled with the launch of its
RHO Phyto Micro drop 50 formulation, which is currently the
company’s best performing SKU on the Medical Cannabis by Shoppers™
platform.
- Agreement to Develop and
Commercialize Adaptogen Nutraceuticals. Agreement with
Ei. Ventures, Inc. for Avicanna to utilize
its existing scientific platform and drug delivery systems to
develop and commercialize Psilly™ branded functional fungi-based
products. The initial focus of the research and development efforts
will be on functional, apoptogenic, fungi-based formulations in the
form of consumer friendly and single dosed products.
Other highlights subsequent to Q3
2022
- Filing of complete Patent
Specifications Relating to a Novel Cannabinoid Formulation for
Reducing Incidence of Seizures and Sudden Unexpected Death in
Epilepsy. Recent in-vivo animal studies conducted in partnership
with the University of Toronto confirm Formulation Candidate’s
anti-seizure properties allowing for formalization of the patent
application
- Launch of Medical Cannabis
Education Online Portal, "Avicenna Academy" for Health Care
Professionals. The education portal provides modules, case studies
and other medical education information and resources related to
medical cannabis for Health Care Professionals. Established with
the support of experts in the fields of pain management, neurology,
and dermatology, the portal is designed to address potential gaps
in knowledge and training related to the potential use of cannabis
in a medical context
- Expansion of its Epilepsy Research
Program with a New Collaboration with the University of Toronto. In
collaboration Dr. Mac Burnham’s team Avicanna’s drug candidate and
its proprietary combination of cannabinoids will be assessed
pre-clinical model for seizures. Avicanna further expands its
current research and commercial focus in Epilepsy which is
supported by current medical cannabis sales and on-going research
with UHN
About Avicanna Inc.
Avicanna is a commercial-stage international
biopharmaceutical company focused on the advancement and
commercialization of evidence-based cannabinoid-based products for
the global medical and pharmaceutical market segments. Avicanna has
an established scientific platform including R&D and clinical
development that has led to the commercialization of more than
thirty products across various market segments:
Medical Cannabis & Wellness
Products: Marketed under the RHO Phyto™ brand these
medical and wellness products are a line of pharmaceutical-grade
cannabinoid products containing varying ratios of cannabidiol
(“CBD”) and tetrahydrocannabinol (“THC”). The product portfolio
contains a full formulary of products including oral, sublingual,
topical, and transdermal deliveries that have controlled dosing,
enhanced absorption and stability studies supported by pre-clinical
data. The formulary is marketed with consumer, patient and
medical-community education and training.
Pharmaceutical
Pipeline: Leveraging Avicanna’s scientific platform,
vertical integration, and real-world evidence, Avicanna has created
a pipeline of patent-pending drug candidates that are
indication-specific and in various stages of clinical development
and commercialization. These cannabinoid-based drug candidates look
to address unmet medical needs in the areas of dermatology, chronic
pain, and various neurological disorders. Avicanna’s first
pharmaceutical preparation (Trunerox™) is in the drug registration
stage in South America.Click to watch Avicanna’s Corporate Video
2022
SOURCE Avicanna Inc.
Stay Connected
For more information about Avicanna, visit
www.avicanna.com, contact Ivana Maric by email at info@avicanna.com
or follow us on social media
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The Company posts updates through videos from
the official Company YouTube channel.
Cautionary Note Regarding
Forward-Looking Information and Statements
This news release contains “forward-looking
information” within the meaning of applicable securities laws.
Forward-looking information contained in this news release may be
identified by the use of words such as, “may”, “would”, “could”,
“will”, “likely”, “expect”, “anticipate”, “believe, “intend”,
“plan”, “forecast”, “project”, “estimate”, “outlook” and other
similar expressions. Forward-looking information contained in this
news release includes, without limitation, statements related to
the Offering, the use of the proceeds of the Offering, the receipt
of all approvals of the Toronto Stock Exchange in connection with
the Offering, statements with respect to the Company’s future
business operations, potential collaborations, the opinions or
beliefs of management and future business goals. Although the
Company believes that the expectations and assumptions on which
such forward looking information is based are reasonable, undue
reliance should not be placed on the forward-looking information
because the Company can give no assurance that they will prove to
be correct. Actual results and developments may differ materially
from those contemplated by these statements. Forward-looking
information is subject to a variety of risks and uncertainties that
could cause actual events or results to differ materially from
those projected in the forward-looking information. Such risks and
uncertainties include, but are not limited to, current and future
market conditions, including the market price of the common shares
of the Company, and the risk factors set out in the Company’s
annual information form dated March 31, 2022, filed with the
Canadian securities regulators and available under the Company’s
profile on SEDAR at www.sedar.com. The statements in this news
release are made as of the date of this release. The Company
disclaims any intent or obligation to update any forward-looking
information, whether as a result of new information, future events
or results or otherwise, other than as required by applicable
securities laws.
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