Avicanna Reports Full Year 2023 Audited Financial Results

Avicanna Reports Full Year 2023 Audited Financial Results

Avicanna Inc., a trailblazer in the biopharmaceutical industry specializing in plant-derived cannabinoid-based products, has recently unveiled its full-year audited financial results for 2023. Demonstrating remarkable economic growth, the company reported a revenue increase of 314% and a gross profit surge of 500% from the previous year. Announced on April 02, 2024, these results underscore Avicanna’s financial resilience and its ascending trajectory in the cannabinoid-based product development sector.

2023 Financial Highlights

1. Revenue and Operational Expenses

In an impressive leap from the previous fiscal year, Avicanna’s revenue soared to $16.8 million in 2023, up from $4 million in 2022, marking a substantial 314% growth. This exponential revenue increase is primarily attributed to strategic business moves, including Shoppers’ acquisition of Medical Cannabis from Shoppers Drug Mart and the successful launch of MyMedi.ca. Despite the revenue surge, the company managed a balanced increase in operational expenses by 19%, reflecting effective cost management and operational efficiency.

2. Gross Margins and Profits

In the financial year 2023, Avicanna made significant strides in improving gross margins in North America by 28%, reaching an impressive 45% compared to the previous year. More notably, consolidated gross profits experienced a monumental 500% increase, elevating from $1.1 million in 2022 to $6.7 million in 2023. These figures represent Avicanna’s successful production and sales strategy optimization, leading to higher profitability.

3. Adjusted EBITDA and Cash Flow

Regarding earnings before interest, taxes, depreciation, and amortization (EBITDA), Avicanna reported an adjusted EBITDA loss of $4.2 million. This marks a 49% improvement over the previous year’s loss of $8.3 million, indicating a positive trajectory towards achieving operational profitability. Furthermore, the company significantly reduced its cash used in operations to $1.38 million, an 81% decrease compared to $7.4 million in 2022, showcasing efficient cash management and operational resilience.

CEO Statement and Strategic Moves

Aras Azadian, CEO of Avicanna, expressed enthusiasm over the 2023 accomplishments, highlighting the company’s solidification of its leadership position in the Canadian medical cannabis sector. Through innovative proprietary products and the launch of MyMedi.ca, Avicanna has demonstrated scalable revenue growth and fundamental improvements. Azadian emphasized the company’s progress in R&D and pharmaceutical initiatives, leading to new opportunities and the approval of its first indication-specific drug in early 2024.

Additional Highlights

1. Acquisition and Patient Transition

A pivotal moment in 2023 was Avicanna’s acquisition of Medical Cannabis by Shoppers, including inventory and equipment, for approximately $2.6 million and an earnout based on net revenues for two years. This strategic move enabled over 96% of active patients from Medical Cannabis by Shoppers to transition to MyMedi.ca, enhancing Avicanna’s patient base and service offerings. The company also developed infrastructure for insurance reimbursement services, significantly contributing to revenue growth.

2. Canadian Commercial Advancements

In 2023, Avicanna introduced several new proprietary formulations, leading to a 51% year-over-year increase in the number of finished products sold. The company ended the year with 27 commercially active SKUs in Canada, a 131% increase from the previous year. This expansion, particularly in the medical channels, underscored Avicanna’s commitment to enhancing access to its proprietary medical products for patients across Canada.

Post-Year-End Highlights

1. Trunerox™ and European Supply Agreement

Avicanna made headlines post-year-end with the approval of Trunerox™ in Colombia for treating severe seizures related to Lennox-Gastaut Syndrome and Dravet Syndrome. This approval marked Avicanna’s foray into manufacturing and commercializing its first indication-specific drug. Additionally, the company announced an exclusive supply and licensing agreement for two of its proprietary topical products in the European region, setting the stage for expansion into international markets.

2. Research Collaboration and Brazil Commercialization Approval

Further expanding its global footprint, Avicanna announced a research collaboration with a multi-national European-based pharmaceutical company. This partnership aims to explore the company’s proprietary Self-Emulsifying Drug Delivery System (SEDDS) technology, enhancing the bioavailability of cannabinoids. In Brazil, Avicanna and Ease Labs Pharma received commercialization approval for a pharmaceutical preparation containing THC, marking a significant milestone in Avicanna’s international regulatory achievements.

Future Outlook

Avicanna is poised for continued growth and innovation within the biopharmaceutical sector. The company’s strategic initiatives, including new product development, international expansion, and research collaborations, are expected to further bolster its financial performance and market position. By leveraging scientific advancements and meeting unmet medical needs, Avicanna is strategically positioned to navigate the evolving landscape of cannabinoid-based pharmaceuticals.

Avicanna Inc.’s audited financial results for 2023 paint a picture of a company on the rise, marked by significant revenue growth, profitability improvements, and strategic expansions. With its solid foundation in scientific research and a clear vision for the future, Avicanna is well-equipped to continue its trajectory of growth and innovation. As the company looks forward to building on its successes, it remains a notable player in the global market for cannabinoid-based pharmaceuticals.

Source: https://www.globenewswire.com/news-release/2024/04/02/2855840/0/en/Avicanna-Reports-Full-Year-2023-Audited-Financial-Results.html