Bioxyne, an ASX-listed company that acquired Breathe Life Sciences last year, has announced its decision to sell its 51% interest in its PCC probiotics wholesale business. The company said the division has underperformed due to market pressure from competitors and that medicinal cannabis is the major driver of the business.
Bioxyne’s revenue grows by 22% in Q2
According to its latest quarterly report, Bioxyne generated revenue of A$2.56 million in the October to December quarter, a 22% increase from the previous quarter. The company said its Australian revenue more than doubled during Q2 to almost $1m, driven by the growth of its BLS Clinics, which provide medicinal cannabis products and services to patients.
Bioxyne also reported that customer receipts climbed 2% to $2.37m, while net cash used in operating activities hit $706,000, taking the six-month deficit to $2.3m. The company had $1.5m in available cash at the end of December.
The market reacted well to the results, with shares rising 7% to $0.015c in Monday trading.
Bioxyne to divest its interest in PCC probiotics
Bioxyne said it is in the process of winding down the direct sales business and divesting its interest in the PCC probiotics division, which produces and sells probiotic products to its major customer, Probiotec Limited. The company said the division has been affected by market pressure from competitors and that it expects to complete the sale by the end of March.
Bioxyne said the sale will allow it to focus on its core business of medicinal cannabis, which it believes has more potential for growth and profitability. The company said it has a strong pipeline of products and services in the medicinal cannabis sector, including its CanXchange platform, its psilocybin and MDMA research, and its GMP-certified facility in Brisbane.
Bioxyne’s plans for 2024
Bioxyne said it expects to receive GMP certification for its Brisbane facility in February, which will enable it to scale production significantly and meet the growing demand for medicinal cannabis products in Australia and overseas. The company said it has already secured supply agreements with several distributors and retailers in Australia and New Zealand.
The company also said it has launched its CanXchange platform, which is an AI-powered B2B trading platform that connects buyers and sellers of medicinal cannabis products across the globe. The platform aims to provide transparency, efficiency, and security for the medicinal cannabis industry.
In addition, Bioxyne said it is continuing its research and development of psilocybin and MDMA for the treatment of mental health disorders, such as depression, anxiety, and PTSD. The company said it has partnered with leading academic institutions and researchers to conduct clinical trials and obtain regulatory approvals for its novel therapies.
Neurotech International receives approval for cerebral palsy trial
In other news, Neurotech International, a company that develops cannabinoid therapies for neurological disorders, has received approval from the Human Research Ethics Committee and the Therapeutic Goods Administration to conduct a phase I/II clinical trial of its NTII64 formulation for the treatment of children with cerebral palsy.
The trial will recruit 14 paediatric patients from Monash Medical Centre and evaluate the effects of NTII64 on health-related quality of life, pain, sleep, seizure frequency, muscle contraction, and spasticity. NTII64 is a proprietary cannabis formulation that contains a range of cannabinoids, including CBDA, CBC, CBDP, CBDB, and CBN.
Neurotech’s executive director Dr Thomas Duthy said: “We see NTII64 as potentially a new breakthrough treatment as part of the clinical armamentarium to treat CP spasticity more effectively.”
Neurotech is also testing NTII64 for the treatment of autism, PANDAS, PANS, and Rett Syndrome.