MediPharm Labs Corp., a global innovator in specialized, research-driven cannabis extraction, distillation and derivative products, achieved Company record finished goods shipments of 550,000 units in the fourth quarter of 2020. These results and the update that follows reflect corporate progress of the Company’s Canadian domestic business only. The Company will provide a separate update on the progress of its Australian and international businesses.
“Shipment volume is a key measure that illustrates growing market demand and our ability to meet that demand through our GMP-certified facilities,” said Keith Strachan, President and Interim CEO, MediPharm Labs. “This new milestone is something to celebrate but also to surpass as we focus all efforts on accelerating growth and improving profitability in 2021 consistent with the action plan introduced in November.”
Of the units shipped, 100,000 were owned private label MediPharm Labs Stock Keeping Units (SKUs) compared to 25,000 SKUs respectively in the third quarter.
“Demand signals for our proprietary formulations are strong with several already becoming top sellers in many provinces,” said Strachan. “In fact, Ontario Cannabis Store sales data show that MediPharm Labs’ CBD 50 Plus Formula oil ranks as the third best-selling CBD oil in the province and number five best-selling in the overall oil category. Our reputation for quality and purity is resonating with consumers, provincial distributors and our B2B customers.”
Included in Q4 shipments were 25 different vape SKUs, reflecting the ongoing ramp up of production and contract manufacturing for many top cannabis brands that count on MediPharm Labs for value-added service and consistent GMP-quality output.
Outstanding Launch for Avicanna Inc.
Avicanna’s RHO Phyto medical formulary line, produced by MediPharm Labs under license, has experienced an incredibly successful launch with overwhelmingly positive support by the medical community including 300 prescribers and 20 clinics. MediPharm Labs has ramped production of six RHO Phyto products to date and expects to continue to increase output to support consumer demand and Avicanna’s plan to expand RHO Phyto SKUs to 10 in 2021.
New Provincial Supply Agreement
During Q4 2020, MediPharm Labs entered a supply agreement with Nova Scotia Liquor Corporation and shipped initial orders to the province. Nova Scotia recently opened additional cannabis stores as part of its growth plan. The Company now has retail distribution agreements with six provinces: B.C., Alberta, Saskatchewan, Manitoba, Ontario and Nova Scotia.
“We made additional investments in our sales team and we began to reap the benefits in the fourth quarter,” said Mr. Strachan. “We added sales resources with the goal of expanding our B2B partnerships, growing market share within our existing provincial distribution footprint and targeting new provincial and retail distribution opportunities. These activities form part of our improvement strategy for 2021.”
First To Market
As part of executing its brand strategy, MediPharm Labs also became the first and only producer in Canada to launch a consumer-sized, 99% pure CBD isolate in Canada. This fourth quarter accomplishment, announced in October 2020, broadens the Company’s marketplace to include consumers who favour an all-natural, high-quality/high-potency cannabinoid wellness supplement. Retailers in six provinces received their first shipments of LABS Cannabis CBD Crystalline Isolate in Q4 2020. Initial sales have been strong as MediPharm Labs’ CBD Isolate remains the only product available in its class.
LABS Cannabis – Formulated for Life
In Q4 2020, MediPharm Labs introduced “LABS Cannabis – Formulated for Life”, a new health and wellness product suite focused on bringing innovative and high-quality cannabis formulations products that integrate into lives of consumers. This research-backed suite leverages innovative and refined extraction and purification methods. All products are manufactured by MediPharm Labs in Barrie Ontario. The brand story is told at https://www.labscannabis.com/.
Founded in 2015, MediPharm Labs specializes in the production of purified, pharmaceutical-quality cannabis oil and concentrates and advanced derivative products utilizing a Good Manufacturing Practices certified facility with ISO standard-built clean rooms. As a global leader, MediPharm Labs has completed commercial exports to Australia and has fully commercialized its wholly-owned Australian extraction facility. MediPharm Labs Australia was established in 2017.