Avicanna Inc. (AVCN, AVCNF, FSE:0NN) delivered strong financial and operational results for the second quarter of 2024, showcasing significant growth in its cannabinoid-based product business. The company reported revenue of CA$6.1 million ($4.45 million), representing a substantial 85% increase year-over-year. This positive performance reflects Avicanna’s strategic focus on expanding its presence in the medical cannabis market.
CEO Aras Azadian expressed satisfaction with the quarter’s achievements, highlighting the company’s solidified position in the medical cannabis space, strengthened relationships with the medical community, and stabilized commercial operations in Canada. Notably, Avicanna completed two separate real-world evidence trials focusing on its drug candidates, aligning with its long-term growth strategy.
The financial highlights demonstrate a robust performance. Gross profit for the three months ending June 30, 2024, reached CA$2.8 million, significantly higher than the CA$1.5 million reported for the same period in 2023, representing a 94% increase. The six-month gross profit also saw a significant jump, reaching CA$5.9 million compared to CA$2 million in the previous year, marking a 183% increase.
While the company reported an adjusted EBITDA loss for the three months ending June 30, 2024, this loss narrowed to CA$442,310, a 65% decrease compared to the CA$1.3 million loss reported in the same period last year. The net loss for the quarter amounted to CA$1.95 million, slightly higher than the CA$1.76 million net loss reported in the second quarter of 2023. Total expenses for the quarter reached CA$4.68 million, compared to CA$3.35 million in the second quarter of the prior year. Avicanna held CA$488,211 in cash at the end of the reporting period, on June 30.
Avicanna’s commitment to research and development is evident in its recent milestones, including the completion of a study in patients with Epidermolysis Bullosa at The Hospital for Sick Children. This study evaluated the efficacy of Avicanna’s RHO Phyto-branded Ultra CBD Topical Cream in treating wound healing, pain, and itch associated with the condition. The study results indicated positive outcomes, with 55% of participants reporting improvements in wound healing and 45% showing wound stability.
Furthermore, Avicanna completed a Topical Gel Observational Real-World Evidence Study in patients with musculoskeletal pain and inflammation. This study evaluated the efficacy of RHO Phyto CBG Transdermal Gel containing 2% CBD and 1% CBG in treating various musculoskeletal conditions, including arthritis, osteoarthritis, rheumatoid arthritis, fibromyalgia, muscle and joint pain, localized pain, and post-surgical pain. The study results demonstrated a significant improvement in overall Musculoskeletal Health Questionnaire scores, with a 35.4% improvement reported in health-related domains, including symptoms, physical functioning, daily activities, and work.
Avicanna’s shares closed flat at 23 cents per share on Wednesday. The company’s strong financial performance, coupled with its commitment to research and development, positions Avicanna as a key player in the evolving medical cannabis landscape.
