This small-cap ASX biotech's share price is soaring today

An operations update for the June quarter sees the Medlab Clinical Ltd (ASX: MDC) share price soar in Thursday trade.

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The Medlab Clinical Ltd (ASX: MDC) share price is up 7.1% to $0.38 in Thursday trade following the release of an operations update this morning. The company announced that it had delivered a very strong June quarter, with progress being made in its research-driven development along with a significant improvement in the commercialisation of its products. 

For the June quarter, Medlab reported total revenue in excess of $3 million (excluding R&D incentive and after discounts). This was an increase of 135% over the same quarter last year. Furthermore, the company has achieved year on year growth in excess of 50% (excluding R&D incentive and after discounts). 

A closer look at Medlab Clinical

Medlab Clinical is a medical life science company that is developing therapeutic pathways for diagnosed chronic diseases. The company is developing therapies for pain management, depression and obesity in conjunction with earning revenue from the sale of nutritional products in Australia and the United States (US). Of particular note is Medlab's focus on developing cannabis-based medicines for pain management.

During the June quarter, Medlab implemented its rollout and placement for its self-branded nutraceutical range products into Priceline and Terry White Chemmart pharmacies. Medlab's range of products can now be found in more than 3,000 pharmacies in Australia. 

Medical cannabis presents growth opportunity

Regarding medical cannabis, the company is actively pursuing regulatory pathways via the Therapeutic Goods Association (TGA) in Australia, Food and Drug Administration (FDA) in the United States and the European Medicine Agency. The core long-term objective remains to achieve a research-backed registered drug in major global markets. 

Research into Medlab's patented cannabis-based medicine NanaBis continues to progress well. The company has also entered into a number of agreements with multinational partners. In March, a heads of agreement was executed with Canadian pharmaceutical company Pharmascience Inc. for further development and distribution of NanaBis. In May, Medlab executed a heads of agreement with Thai pharmaceutical company Mega Lifesciences Public Company Limited for the distribution of NanaBis in parts of South America. 

Other cannabis stocks such as AusCann Group Holdings Ltd (ASX: AC8) and Creso Pharma Ltd (ASX: CPH) have also risen 4.2% and 1.0%, respectively, in Thursday trade. 

Motley Fool contributor Tim Katavic has no financial interest in any company mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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