Why the Creso Pharma (ASX:CPH) share price is smoking the market today

The Creso Pharma Ltd (ASX:CPH) share price is on the move on Tuesday following the release of an update by the cannabis company…

| 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 Creso Pharma Ltd (ASX: CPH) share price is on the move on Tuesday morning following the release of an update.

At the time of writing, the cannabis company's shares are up 16% to 25.5 cents.

What did Creso Pharma announce?

This morning Creso Pharma announced that it has secured a new purchase order for its leading range of animal health products anibidiol.

According to the release, the order has come from its existing commercial partner, Virbac Switzerland, and is a repeat of a previous order.

The order is valued at CHF171,000 (A$247,826) and is expected to be delivered to Virbac Switzerland in April 2021.

Management notes that this adds to a number of orders that Creso Pharma has secured in the recent weeks including three for anibidiol valued at CHF277,000 (A$401,4491) from current commercial partners.

The company expects to fulfil these orders during the current quarter, with the sale to be banked shortly after.

Strong demand.

In addition to this, Creso Pharma advised that it is also witnessing strong demand for its products in Latin America.

It has recently secured regulatory approval for its animal health product line from the Ministry of Agriculture and Animal Feed in Uruguay and received an initial order for anibidiol valued at CHF60,000 (A$86,957). This will be delivered around April 2021.

Further, this month it finalised the delivery of its second order valued at CHF220,000 (A$318,841) for its cannaQIX products from the South African subsidiary of Lupin International. These products were delivered during January, allowing Creso to bank the total value of the order.

All in all, the total value of these combined orders represents CHF728,000 (A$1,055,072), which Creso Pharma expects to recognise as revenue within the first half of FY 2021.

Management believes this is a major achievement for the company and highlights the growing demand that it is witnessing for its leading product ranges on a global scale.

Creso's Commercial Director, Jorge Wernli, commented: "We are very pleased with the recent developments and receipt of a number of purchase orders for both the anibidiol and cannaQIX product lines."

"Our capabilities to generate and deliver ongoing POs, and deliver a record start to FY2021 leaves Creso in a very favourable position to capitalise on the fast growing demand we are witnessing for our offering and the large market opportunity the health sector represents," he concluded.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Share Gainers

Why Harvey Norman, Macquarie Technology, Ramsay Health Care, and Star are rising

These ASX shares are having a strong day. But why?

Read more »

A man looking at his laptop and thinking.
Share Gainers

Should I buy Nvidia stock as an Australian investor?

Many Aussies are thinking of jumping on the bandwagon, but they need to think about these issues first.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Share Gainers

Here are the top 10 ASX 200 shares today

It was a rough day for ASX 200 investors this Wednesday.

Read more »

A woman's hair is blown back and her face is in shock at this big news.
Share Gainers

Why APM, DroneShield, EOS, and NextDC shares are charging higher

These ASX shares are having a strong session on Wednesday. But why?

Read more »

A happy businessman pointing up, inidicating a rise in share price
Materials Shares

Why are ASX lithium shares like Liontown having such a bumper session today?

Lithium shares are defying the broader market on Wednesday.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

This ASX All Ords stock just surged 88% in less than 3 days! Any guesses?

The ASX All Ords stock is drawing intense buying interest from investors this week.

Read more »

A little girl with red hair runs excitedly with a rocket strapped to her back, trying to launch.
Share Gainers

This small-cap ASX stock just rocketed 39%. What's doing?

A stock no one has heard of is lighting up trading screens on Wednesday. You might hear this name more…

Read more »

A man eases back onto his sofa, happy with the relaxed vibe from his furniture.
Share Gainers

If you'd put $30,000 in this ASX retail stock 11 months ago, you'd have $116,000 now

When battered stocks make a comeback, it happens very quickly. Here's a prime example.

Read more »