Bioxyne’s Q2 FY24 revenue surpasses $2.5m on Aussie medicinal cannabis growth

• Bioxyne attains annualised revenue run rate of $10 million, with Q2 reaching $2.56 million
• TGA GMP audit completed with issuance of GMP manufacturing license expected in February 2024
• BXN launches CanXChange to target +$500m Australian medical cannabis market

Special Report:  Health and wellness company Bioxyne has disclosed group revenue of ~$2.56 million for Q2 FY24, propelling the company’s annualised sales run rate beyond $10 million with the primary contributor to this growth being its medicinal cannabis business.

Bioxyne (ASX:BXN) says it is experiencing rapid growth in the wholesale distribution of medicinal cannabis starting materials in Australia, along with its trademarked Dr. Watson products, and final dose form products from its wholly-owned subsidiary Breathe Life Sciences (BLS).

BXN reported Australian revenues for its medicinal cannabis arm were just short of $1 million, an increase of +100% on the previous quarter.

Furthermore, the BXN says consumer health products and lifestyle divisions of BLS in the UK, Europe, and Japan maintain consistent performance.

BXN’s investment in inventory increased from $995,000 in Q1 to $1.565 million in Q2 FY24.

The company says net trade working capital including inventory at the end of Q2 FY24 was $1.8 million.

BXN says the group had a net cash outflow for the quarter of $700,000 principally due to inventory holding and timing of receivables, which are current and amount to $1.5 million as at December 31, 2023.

Cash balance at the end of the quarter was $1.5 million.

Source: BXN

GMP audit and inspection during quarter

BXN says a TGA GMP audit and inspection of its Brisbane pharmaceutical manufacturing facility in November went well.

The company expects to receive GMP certification in February 2024, which will allow it to scale its production capabilities significantly.

BXN says result for the half year will include costs of ~$400,000 related to the establishment of the Brisbane GMP facility.

The company has appointed Macdarragh O’Neill as its head of production. The former process and compliance manager at Steritech will be responsible for supervising production at the GMP facility.

Macdarragh holds a Bachelor of Engineering in Biomedical Engineering and a Masters in Engineering Science from the National University of Ireland.

BXN is actively exploring various opportunities to enhance the distribution of its plant-based products in the market.

Winding down probiotics business

BXN says its PCCTM probiotics wholesale business underperformed for the quarter with its major customer under market pressure from competitor probiotic products.

The company says the direct sales business has performed below expectations and consequently it is in the process of winding it down and divesting its interest.

Launch of CanXChange

After the quarter end, BXN launched the CanXChange AI-powered B2B therapeutic goods platform to target the $500m plus medical cannabis market in Australia.

The platform provides a portal to facilitate wholesale trading between licensed buyers, sellers, cultivators and accredited manufacturers in the country with more than $10 million in sales interest during its first week.

The global medicinal cannabis market size is forecast to grow from US$29.8 billion in 2023 to US$89.2 billion by 2028, at a CAGR of 20% during the forecast period.

BXN’s planned drug development pipeline includes Psilocybin (magic mushrooms) and MDMA capsules with the company intending to establish commercial pathways via clinical trials and authorised prescribers in 2024.

This article was developed in collaboration with Bioxyne, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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