Medipharm Labs Corp (OTCMKTS:MEDIF) posted revenues of $13.9 million in Q2 2020. It is on the backdrop of high volume sales concentrates and formulated product shipments to distributors in various provinces across Canada. The company reported a gross profit of $2.2 million.
Strengthens balance sheet
Medipharm improved liquidity and strengthened its balance sheet in H1 2020. It entered new supply pacts from international customers and fulfilled the orders. CEO of Medipharm, Pat McCutcheon, said the company’s strategy is to manufacture several products for multiple clients worldwide. The company successfully transformed from a domestic company to a global company.
Pat said the company achieved a 25% growth in Q2 2020 because of the expansion of oil SKUs, vapes, and improvement in product deliveries. The company also introduced its own CBD brands.
Efforts to improve sales
Medipharm successfully commercialized its Australian operations. It won several contracts in the Asia Pacific and European markets. The company is also in discussions with CPG and large pharma companies to boost sales.
Medipharm is establishing its presence worldwide in adult-use, wellness, and medical-use markets. The company is striving to become a leader in producing pharma quality APIs (active pharmaceutical ingredients), consumer packaged goods, formulated products for pharmaceutical use, and D2C brands.
Medipharm is using its asset-light GMP platform to establish a competitive advantage and operate in multiple jurisdictions. It also embarked on distributing and producing bulk APIs, offering end-to-end development, and finished products to clinch a large pie of the global market. The company satisfies the growing demand for wellness, medical, and adult-use products from multiple customers.
Medipharm is expanding its R&D and maintaining GMP certifications to strengthen its capabilities and develop innovative products. The company also added new board members to improve corporate governance.
Generates revenues from Australian operations
Medipharm generated its first revenue of $625,000 from its Australian subsidiary – MediPharm Labs Australia Pty. Ltd in June 2020. MediPharm Labs Australia signed 12 client accords since January 1, 2020, for the supply of its products in the UK, Germany, New Zealand, Australia, and Denmark.
Medipharm established sales channels with customers in Latin America and the Asia Pacific. It is also in discussions with a leading pharmaceutical company for supply.