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.
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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.
