The Bod Australia Ltd (ASX: BDA) share price is storming higher today as the company announced strong sales.
Shares in the medicinal cannabis company have soared on the news, gaining 10.47%. As a result the Bod share price is currently trading at 48 cents.
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What's driving the Bod share price?
This morning, Bod announced it had achieved strong cannabis sales for the second half of the calendar year 2020.
The company fulfilled 3941 prescriptions in the six-month period, up 91% on the previous half-year results of 2063. This means the cannabis producer has now filled more than 8000 prescriptions since July 2019.
The positive growth can be attributed to continued product uptake and strong brand recognition in Australia. In addition, the company's nationwide study released last year has continued to educate Australians on the benefits of Bod's products. This has generated more sales.
The company also noted that repeat prescribers accounted for 62% of the volume in the second half of 2020, indicating both patient and physician satisfaction.
What did management say?
Bod CEO Jo Patterson welcomed the news, saying:
It is very pleasing to see strong growth and continued support from patients and physicians for our MediCabilis product. MediCabilis is commonly prescribed for a range of chronic conditions, but most noticeably chronic pain and anxiety.
To treat these kinds of conditions, patients will always require a GMP pharmaceutical grade, standardised and consistent product. This is one of the key competitive advantages of MediCabilis and one of the reasons behind the company's strong repeat prescription growth.
We expect strong demand for MediCabilis to continue across Australia and this growth will continue to add to our revenue profile. Board and management look forward to updating shareholders on sales progress in the coming months.
What now for the Bod share price
The Bod share price fell 18% in December although shareholders were rewarded with a 71% gain over the last 6 months. This has continued into the beginning of this year with today's 11% intraday rise.
Thanks to the recent growth in MediCabilis sales and prescription volumes, Bod's revenue profile has significantly increased. As a result, the company is expecting this growth to continue into the coming months both domestically and in the UK market.
