Althea share price on watch following online cannabis sales launch

The Althea share price is on watch this morning after the company announced it has launched online sales of medicinal cannabis.

| More on:
cannabis leaves on a rising line graph representing growth of ASX cannabis share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Althea Group Holdings Ltd (ASX: AGH) share price is on watch this morning after the company announced it has launched online sales of medicinal cannabis. Patients can now order products online via the ‘Althea Concierge’ platform and have them delivered directly to their doors. This eliminates the need to visit a doctor or pharmacy in order to obtain the treatment on an ongoing basis.

What does Althea do? 

Althea was founded in 2017 in Melbourne and holds licenses to import, cultivate, produce and supply medical cannabis.  The company has seen strong growth in customer numbers since launching. By the end of March this year, Althea had supplied medical cannabis to over 5,000 Australian patients. The company also has a manufacturing facility in Canada, Peak Processing Solutions. This facility produces ‘Legalisation 2.0’ products such as edibles, beverages, and cosmetic applications. 

How do online cannabis sales work?

The Althea Concierge platform, which is a TGA registered medical device, has been comprehensively updated to facilitate online sales and interactive, customisable treatment plans. Used in conjunction with telemedicine, the platform allows doctors to prescribe Althea medical cannabis products. Patients pay for their prescriptions online and medication is then delivered directly to their doors. This then eliminates the ongoing need for multiple visits to doctors and pharmacies . 

The new interactive treatment plan feature allows doctors to issue personalised treatment plans directly to patients’ phones. This provides patients with customised dosage reminders and allows them to record their usage and provide ongoing feedback to their doctors. Anonymous patient symptom data will contribute to a body of evidence in support of Althea medications. 

Althea CEO, Josh Fegan said, “We are very excited about this latest update to the Althea Concierge platform. The ability for contactless sales is probably the biggest development yet for medicinal cannabis in Australia”. Althea plans to roll out the updated version of its Concierge platform in the United Kingdom, where the company launched in June 2019, in the coming months. 

What is the outlook for the Althea share price?

Althea has been expanding rapidly since its inception. It has gained significant numbers of Australian patients and prescribers as well as launched in the UK. The company has also commenced manufacture in Canada and begun supplying products to Germany. It certainly appears as if Althea is set to make its mark on the medicinal cannabis industry. In the first half of FY20, the company reported a 963.8% increase in revenues. Investors are eagerly awaiting full year results to see if Althea can continue its trajectory.  

Motley Fool contributor Kate O'Brien has no position in any of the stocks 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.

More on Share Market News

A group of happy office workers throw papers in the air and cheer after seeing the Latrobe Magnesium price skyrocket 38%
Share Market News

Here are the top 10 ASX 200 shares today

These ASX 200 shares outperformed all others on Thursday.

Read more »

Three male athletes sprint on an athletics track with the sun low on the horizon behind them representing the race between ASX lithium shares to outperform
Share Market News

Here are the 3 most heavily traded ASX 200 shares on Thursday

Our most traded ASX 200 share today is down by more than 5%.

Read more »

Bear market
Share Market News

Here’s why one big bad bear is suggesting the stock market could crash by 50%

One strategist thinks markets haven't bottomed.

Read more »

Investor sitting in front of multiple screens watching share prices
Share Market News

5 things to watch on the ASX 200 on Thursday

Here's what to expect on the ASX 200 on Thursday...

Read more »

A trendy woman wearing sunglasses is making it rain, spraying cash on that bargain.
Share Market News

Here are the top 10 ASX 200 shares today

It was a great day on the market for these ASX 200 shares.

Read more »

An office worker and his desk covered in yellow post-it notes
Share Market News

Here are the 3 most heavily traded ASX 200 shares on Wednesday

Guess which ASX 200 sector is dominating the market's volume charts today.

Read more »

Business woman watching stocks and trends while thinking
Share Market News

5 things to watch on the ASX 200 on Wednesday

It will be another busy day on the ASX 200 on Wednesday...

Read more »

Two couples having fun racing electric dodgem cars around a track
Share Market News

Here are the top 10 ASX 200 shares today

These 10 ASX 200 shares outperformed all others on Tuesday.

Read more »