The Little Green Pharma Ltd (ASX: LGP) share price climbed higher today after the company announced it has delivered its first French shipment. By the close of trade, the medicinal cannabis company's shares had moved up by 5.47% to an intraday high 67.5 cents.
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What did Little Green Pharma announce?
The Little Green Pharma share price trekked upwards after the company provided investors with the positive news.
According to its release, Little Green Pharma has completed the first shipment of its medicinal cannabis oils to the French national trial.
Authorities will test the first batch of the 4,800 units which will be made available to trial patients sometime this month. The company hopes that having a first-mover advantage in the country could set it up for potential blockbuster growth.
Little Green Pharma is only one of four international cannabis companies that were appointed as primary trial suppliers. The company partnered up with leading French pharmaceutical distributor, Intsel Chimos, to assist in delivering the medicinal cannabis oils.
The French national study is seeking to look at efficacy and safety for patients being treated with medicinal cannabis products. The program is expected to comprise up to 3,000 people and will run for a period of two years.
At the moment, the study represents the only pathway for medicinal cannabis to be supplied to the French market. The trial complements Little Green Pharma's European strategy which has already seen it enter the United Kingdom and Germany.
Little Green Pharma estimates that the legalised medicinal cannabis sector in France could potentially be worth 4 billion euros (AUD$6.3 billion) annually.
How has the company been performing?
In the six months ending 31 December 2020, Little Green Pharma achieved strong growth with significant unit sales and revenue.
In Australia, the company sold over 21,000 units which represented an increase of 340% on the prior corresponding period. It also exported its first commercial shipment of 2,400 units to Germany
Total revenue for the first half came to $3.7 million, accelerating 420% from the same time last year.
As a result, Little Green Pharma's bottom line saw net profit after tax (NPAT) just shy of $0.5 million. This is a massive turnaround for the company which posted a loss of $5.5 million in the prior period.
At the end of the calendar year, the company recorded $4.4 million in cash and equivalents.
Little Green Pharma share price review
Over the past 12 months, the Little Green Pharma share price has gone gangbusters, rising by 125%. Year to date, the company's shares have gained just over 20%.
Based on the current share price, Little Green Pharma has a market capitalisation of around $81 million.
