The ETFs S&P Biotech ETF (ASX: CURE), an index fund tracking the global biotech sector, is down almost 24% this year to date, and 33% in the last 12 months.

This is despite the ETF climbing from 52-week lows back in June, showing ASX biotech shares strengthening into the new financial year, as illustrated below.

Here are three notable biotech shares to emerge from the pack:

Telix Pharmaceuticals Ltd (ASX: TLX)

Shares of Telix tracked the biotech sector closely in FY22 and finished around 22% in the red. The company's share price also strengthened in late June and rallied into the new financial year.

This followed a key update from the company. Telix signed a license and distribution agreement with Isologic Innovative Pharmaceuticals Ltd (Isologic).

The agreement is for the commercialisation of Telix's investigational prostate cancer imaging agent, Illuccix.

Isologic is the leading radiopharmaceutical network in Canada, servicing 265 hospitals and clinics
across the country, Telix said.

Momentum has continued into the new financial year with Telix advising yesterday it had dosed the final patient and completed recruitment for its Phase 3 ZIRCON pivotal study.

Mesoblast Ltd (ASX: MSB)

Shares of Mesoblast, on the other hand, didn't have such an enjoyable run in FY22. The share price bounced repeatedly to new lows until finally bottoming at 61 cents on June 30.

The company left investors underwhelmed last financial year and is now down 61% in the past 12 months, and 43% this year to date. Mesoblast shares are valued at 80 cents each at the time of writing.

The company posted its financial and operational highlights for the last quarter on 1 June although the market was agnostic to the report.

In May, a former shareholder began legal proceedings in the Federal Court alleging Mesoblast misled the market on its remestemcel-L label. This added further pressure to the company's share price.

The company has also faced similar allegations in the US.

IDT Australia Ltd (ASX: IDT)

Shares of IDT were heavily compressed in FY22 and finished the year deep in the red. Losses have continued to date with the company's share price finishing around 60% lower last financial year.

One contributing factor was a company update in March. IDT notified the market its submission to the Modern Manufacturing Initiative (MMI) for a Manufacturing Collaboration Stream Grant had been unsuccessful.

But the biggest blow came after IDT was advised that its submission to potentially develop an onshore mRNA manufacturing capability would not progress.

When the company announced its knockback from the federal government back in December 2021, investors ran for the hills.

As a result, IDT shares were heavily punished and plunged 64% from the close on 30 November 2021 to 27 January 2022.

The post How did ASX biotech shares perform in FY22? appeared first on The Motley Fool Australia.

At the time of writing, the pharmaceutical manufacturing company's shares are down 37% to 30 cents.

Why is the IDT Australia share price crashing today?

Investors have been selling down the IDT Australia share price today after it was dealt a bitter blow.

Earlier this year, the company announced that it successfully manufactured an mRNA drug product. This made IDT the first in Australia to manufacture a cGMP mRNA drug product.

In light of this, there were hopes that this would support its Australian Government Approach To Market submission to establish an onshore mRNA manufacturing capability (ATM).

However, this morning the Australian Government has confirmed that IDT's ATM submission has not been selected to progress to the next stage of the process.

IDT's CEO, Dr David Sparling, commented: "Whilst we are disappointed in the outcome of the ATM process, IDT has developed and progressed several alternative strategic options. The Company has successfully delivered on the Monash Institute of Pharmaceutical Sciences (MIPS) COVID-19 mRNA receptor binding domain vaccine candidate project, being Australia's first locally manufactured cGMP mRNA finished product and clearly showcases IDT's manufacturing capabilities in this regard."

What's next?

Dr Sparling notes that the company remains in the running for the Manufacturing Collaboration Stream Grant Opportunity.

"IDT is now sterile licenced and is maintaining its sterile facilities in a state of readiness to accept COVID-19 vaccine content at the Government's discretion. The Company is also waiting to receive feedback on its submission to the Australian Government's $800m Modern Manufacturing Initiative (MMI) Manufacturing Collaboration Stream Grant Opportunity," Dr Sparling added.

Positively, the company also stressed that the proposal is unaffected by the outcome of the ATM process. It will provide a market update if and when additional information comes to hand.

The post Why the IDT Australia (ASX:IDT) share price is crashing 37% lower today appeared first on The Motley Fool Australia.

Before it was put on hold, the IDT share price was trading at 48 cents apiece.

IDT is a Melbourne-based pharmaceutical company involved in manufacturing mRNA for use in COVID-19 vaccines.

Why is the IDT share price halted?

IDT has been granted a trading halt pending an upcoming public announcement on mRNA vaccine production.

The company needs to consider its response to an announcement by the federal government on local mRNA manufacturing.

The company said it's not in a position to announce this to the market at present.

Early on Tuesday, the government revealed it has struck a deal with Moderna to build a new vaccine manufacturing facility in Victoria. At the time of writing, it's not clear if IDT will play any role in this deal.

IDT does not expect the trading halt to last more than two days and will make an announcement prior to this time.

What is the company working on?

As reported by Motley Fool Australia, IDT has reported it's successfully manufactured an mRNA drug product for use in a COVID-19 vaccine candidate.

On Monday, the company provided an update to investors on its mRNA manufacturing initiatives.

The company sees an unmet market need for commercial-scale manufacturing of mRNA.

IDT stated it wants to grow its mRNA facilities to become Australia's mRNA "manufacturing hub of excellence".

IDT share price snapshot

In the last 12 months, the IDT share price has sky rocketed 134% and has rallied 159% in the year to date.

Despite this, it's slipped 2% in the last month and 3% in the past week.

IDT has a market capitalisation of roughly $115 million based on the current share price.

The post Why is the IDT (ASX:IDT) share price halted today? appeared first on The Motley Fool Australia.

Today's price swings follow on from an outstanding performance yesterday.

After the ASX medical research company reported it had successfully created the first mRNA COVID-19 vaccine candidate in Australia, the IDT share price surged, closing the day up more than 38%.

As the Motley Fool reported yesterday:

The drug product passed all the required specifications and is now going through the release process for clinical trials. In total, 450 doses of the vaccine have been manufactured, allowing 150 volunteers to take part in the upcoming study. This is expected to commence in the new year, with results expected later in 2022.

Below we look at why IDT's CEO, Dr David Sparling, says it's critical for Australia to have its own messenger RNA (mRNA) production facilities.

Why mRNA is a vital tool against COVID variants like Omicron

With COVID-19 having again mutated, many experts predict that Omicron will replace Delta as the prevalent strain in 2022. And most experts agree that Omicron is unlikely to be the last variant we see before, hopefully, humanity gets ahead of the pandemic.

Sparling says it's crucial that Australia obtains the ability to develop and produce its own mRNA vaccines domestically.

According to Sparling (quoted in the Australian Financial Review):

It's quite pivotal when you think about it. The dividends that can pay off in the future is the ability for us to be less reliant on overseas suppliers of vaccines and more reliant on our own capabilities.

The IDT share price has been volatile as it developed its vaccine candidate in only 5 months. The company worked together with the Monash Institute of Pharmaceutical Sciences and Doherty Institute. Addressing the rapid development, Sparling said:

The reason why these vaccines were developed so quickly is because the vaccine can be modified very quickly. That is the beauty of this platform and this technology: you can put a new mRNA sequence into the vaccine and quickly change the vaccine for future variants…

Things can change very quickly, but what I would say is at least developing the capability to manufacture these things for ourselves puts us on the cutting edge of this science and put us in a very good position to fight whatever difficult issues that may come up next.

IDT share price snapshot

The IDT share price has had a tremendous year, up 213% since 4 January. For some context, the All Ordinaries Index (ASX: XAO) is up 8% year to date.

Over the past month IDT shares have gained 13%

The post IDT (ASX:IDT) share price swings as CEO lauds mRNA tech in fight against Omicron appeared first on The Motley Fool Australia.

The biotech registered its VIRALEZE spray for sale in the Asian country. It recently signed initial distribution agreements to supply 100,000 units and said it is finalising a contract for ongoing supply of the product.

The Starpharma share price jumped 6.5% to $1.16 at the time of writing when the  S&P/ASX 200 Index (Index:^AXJO) dipped 0.3%.

Vietnam boost for the Starpharma share price

The spray is a broad-spectrum antiviral nasal spray that contains Starpharma's SPL7013 innovation. Tests have shown that SPL7013 caused the inactivation of more than 99.9% of the Delta COVID-19 mutation.

The initial distribution agreements were signed with Healthco Australia  Pty  Ltd and Vietnam-based Truong Bao Land International Investment  Company  Limited  (TBL).  TBL will also distribute VIRALEZE via its local medical distribution networks.

Starpharma share price breathing easier

This development couldn't have come at a better time for embattled shareholders. The Starpharma share price has slumped by more than 20% this calendar year. Even with today's rally, it is still trading close to an 18-month low.

However, the emergence of the Omicron mutation could put COVID-linked ASX shares back into investors' good books.

From Delta to Omicron

Starpharma trying to capitalise on this by hinting that VIRALEZE could lower the risk of mutations too.

It noted that the mechanism of action meant that mutations of the spike protein that make SARS-CoV-2 more infectious appear to make the virus more susceptible to trapping and blocking by SPL7013.

"We are excited to see the product launched in Vietnam this week," said Jackie  Fairley,  Starpharma's chief executive.

"This registration, the first in South East Asia, builds upon existing submissions as well as registrations already achieved in Europe, India and New Zealand, and we are expediting further regulatory submissions in multiple regions and countries."

Other ASX shares of note

The Starpharma share price isn't the only one in the sector that is making gains. The IDT Australia Limited (ASX: IDT) share price gained 0.8% to 61.5 cents and the CSL Limited (ASX: CSL) share price added 0.9% to $309.53.

IDT is the first in Australia to develop a manufacturing capability for mRNA vaccines.

The IDT share price jumped by nearly three-fold in 2021 while the CSL share price gained a little over 8%.

The post The Starpharma (ASX: SPL) share price surges on Vietnam launch appeared first on The Motley Fool Australia.

At the time of writing, IDT Australia shares are up 40.23% to 61 cents. This means that its shares have now more than tripled since the start of the year.

IDT Australia marks milestone achievement 

Investors appear excited about the company's latest COVID-19 update, rallying up the IDT Australia share price.

According to its release, the company advised it has successfully created Australia's first mRNA COVID-19 vaccine candidate.

The drug product passed all the required specifications and is now going through the release process for clinical trials. In total, 450 doses of the vaccine have been manufactured, allowing 150 volunteers to take part in the upcoming study. This is expected to commence in the new year, with results expected later in 2022.

Last month, IDT Australia entered into a Master Services Agreement and Services Order with Monash Institute of Pharmaceutical Sciences (MIPS). Following completion of the successful manufacture, IDT Australia will begin testing ongoing product stability.

A collaboration between MIPS, Doherty Institute and IDT Australia has put Victoria's medical research and manufacturing sectors in the spotlight. The state is one of the few places in the world with the capability to develop and manufacture mRNA therapeutics.

IDT Australia CEO, Dr David Sparling commented:

We're honoured to be a part of this collaboration. We believe this product will be the first locally developed mRNA COVID-19 vaccine candidate and the first locally manufactured cGMP mRNA drug product.

About the IDT Australia share price

Over the past 12 months, IDT Australia shares have gained around 215%. Year-to-date has surged even further, with the company share price up 225%.

IDT Australia presides a market capitalisation of roughly $143.92 million and has approximately 239.86 million shares outstanding.

The post IDT Australia (ASX:IDT) share price rockets 40% on COVID vaccine update appeared first on The Motley Fool Australia.

Despite this, IDT shares have been a major performer on the Australian broad indices lately.

Whereas the S&P/ASX 200 Index (ASX: XJO) has slipped around 0.2% over the last month, the IDT share price has climbed 75% into the green.

Let's investigate further.

What tailwinds are behind the IDT Australia share price?

Without a doubt, the major fuel supply to the company's growth engine was the announcement in mid-August from the IDT Australia camp that it could "produce 100 million doses of mRNA vaccines within 18 months".

Recall that IDT had slotted into the Australian government's plans to produce mRNA vaccines on our own shores.

The company has secured a potentially lucrative contract to do so by building out a "sterile manufacturing facility" in an agreement with the federal Department of Health.

In addition to its talks with federal departments, the company has also "formed an alliance" with various research bodies around the country to produce mRNA vaccines, such as Monash University and the Victorian government.

Its manufacturing facility currently lies in a "state of readiness to produce a COVID-19 vaccine" but will only be utilised if and when the government calls upon IDT to produce the compound.

In other words, the agreement provides for an "exclusivity period" with the Australian government. But, on the flip side, the decision to manufacture a vaccine is entirely at the government's discretion.

The IDT share price immediately soared higher after these announcements. It climbed from 37 cents to a high of 74.5 cents on 27 August, a 101% gain over the week.

There has been no other market-sensitive information for the company during this time. Therefore, it appears investors have been buying IDT shares on the back of these key updates.

IDT Australia share price snapshot

The IDT Australia share price has climbed 259% into the green over the year to date, extending the return over the past 12 months to 297%. Despite this growth, IDT shares have slipped 1.5% in the red in the last week.

These results have both clearly outpaced the broad index's return of around 25% over the past year.

The post Here's why the IDT Australia (ASX:IDT) share price is up 75% in a month. appeared first on The Motley Fool Australia.

IDT shares are on the move as the pharmaceuticals company gave a key update.

Let's investigate further.

What did IDT announce?

IDT provided some additional colour on a previous announcement made on 22 July regarding the company "potentially providing cGMP manufacturing services" for an mRNA vaccine candidate.

Recall that IDT had previously stated it could manufacture up to 100 million doses of an mRNA vaccine within 18 months.

On Monday, IDT confirmed that these discussions "recently extended" to include the Commonwealth and Victorian Governments, alongside Monash University. IDT stated the discussions "are progressing well".

Moreover, IDT advised that its sterile readiness agreement with the Department of Health to bring "IDT's sterile manufacturing facility into a state of readiness to produce a Covid-19 vaccine" was finalised.

This agreement "provides for an exclusivity period" with the Australian government under one of two outcomes (as per the release):

• Executing a supply agreement for IDT to provide Covid-19 vaccine services to the department of heath, OR
• Four months from competion of IDT's sterile readiness works.

In other words, IDT's efforts to ready the facility is on a "vaccine agnositc basis", meaning the company will have the site prepared, and only if and when the government calls upon them to produce a Covid-19 vaccine will IDT do so.

In addition, an important note for consideration is that the decision to manufacture the vaccine is at the Government's discretion.

As a result, investors are buying IDT shares in droves after the news, pushing the IDT Australia share price higher.

IDT shares are now exchanging hands at 70 cents apiece, a 27% surge into the money from the open.

IDT Australia share price snapshot

The IDT share price has posted a year to date return of 278%, extending the previous 12 month's gain of 312%.

These returns have outpaced the S&P/ASX 200 Index (ASX: XJO)'s climb of around 25% over the past year.

The post IDT Australia (ASX: IDT) share price surges 16% on vaccine government talks appeared first on The Motley Fool Australia.

At the time of writing, shares in the pharmaceutical company are trading for 46.5 cents each – up 25.68%.

Let's take a closer look at what's getting investors so excited.

IDT says it can manufacture mRNA vaccines in Australia

The COVID-19 pandemic has heralded the first wide-scale use of mRNA vaccines. The leading products in this space are the inoculations jointly produced by Pfizer Inc (NYSE: PFE) and BioNTech SE (NASDAQ: BNTX), as well as the Moderna Inc (NASDAQ: MRNA) jab.

In an effort to secure domestic supply through the production of the vector for single-strand RNA of viruses, the federal government has been in talks with the companies in a bid to secure a licence for their COVID vaccines to be made in Australia. As well as IDT, CSL Limited (ASX: CSL) is interested in the production of mRNA vaccines on our shores.

IDT says what differentiates its offer from CSL's is it will use existing manufacturing capabilities located near Melbourne's Monash University to make the product. CSL is proposing 2 new facilities for the endeavour, according to the SMH.

The prospect of IDT being awarded a lucrative government contract may be exciting investors, judging by the IDT share price rise.

"This is an established site with an established equipment train in it, which we will expand, and I think that gives us a material time advantage," IDT Chief Executive David Sparling is quoted in the SMH as saying.

"We've formed an alliance with numerous research bodies around the country, including Monash University, and that builds an ecosystem for mRNA."

Dr Sparling further went on to tell the paper his company could produce "100 million doses within 18 months."

IDT says it wants to build an mRNA research facility near its production site if it secures the licence to make the product. Dr Sparling did not reveal any financial details to the SMH.

Motley Fool Australia reached out to IDT for comment. Dr Spalding responded that the reports in the SMH are accurate and that he had nothing further to add beyond what was already in the public domain.

IDT share price snapshot

Over the past 12 months, the IDT share price has increased 141%. The company's shares faced a similar boom when IDT revealed it was in discussions with the Victorian government over a proposed mRNA vaccine plant.

IDT Australia has a market capitalisation of around $104 million.

The post Why the IDT (ASX:IDT) share price is rocketing 25% on Wednesday appeared first on The Motley Fool Australia.

In late afternoon trade, the Australian pharmaceutical manufacturing company's shares are up over 19% to 40 cents.

This means the IDT Australia share price has now more than doubled since the start of the year.

Why is the IDT Australia share price storming higher today?

Investors were bidding the IDT Australia share price higher on Tuesday following the release of an announcement in the afternoon.

According to the release, the company is progressing discussions with the Victorian Government and mRNA Victoria, along with Monash Institute of Pharmaceutical Sciences. This is in relation to IDT potentially providing cGMP manufacturing services to progress the development of Australia's first local mRNA COVID-19 vaccine candidate.

This follows the positive preclinical evaluation of Monash Institute of Pharmaceutical Sciences' mRNA vaccine.

Professor Colin Pouton from Monash Institute of Pharmaceutical Sciences commented: "Preclinical evaluation of our mRNA vaccine has progressed well and we are now keen to partner with an experienced pharmaceutical manufacturer to produce a product for clinical evaluation. We look forward to working with IDT to establish mRNA vaccine manufacturing capability in Australia."

This sentiment was echoed by IDT Australia's CEO, Dr David Sparling.

He said: "IDT is progressing discussions to put forward its cGMP manufacturing facilities and capabilities to get behind the Victorian Government's landmark commitment and initiative to develop an mRNA manufacturing capability, as we believe it will build upon the existing scientific and medical strengths in Victoria and will deliver essential capabilities for Australia."

"Manufacturing clinic-ready vaccine candidates coming out of world class research such as Professor Pouton's at Monash University allows IDT to develop the critical skills and infrastructure at a sovereign cGMP manufacturing site here in Australia. These capabilities will then be locally available for clinical and commercial applications for COVID-19 as well as a broad range of other diseases," he concluded.

The post Why the IDT Australia (ASX:IDT) share price is storming 19% higher today appeared first on The Motley Fool Australia.

The pharmaceutical manufacturing company's shares were up as much as 67% to a multi-year high of 47.5 cents at one stage.

When the IDT Australia share price hit that level, it meant it was up 150% in the space of just two trading sessions.

The company's shares eventually ended the day with a gain of 52.5% to 43.5 cents.

Why is the IDT Australia share price up 150% in two trading sessions?

Investors have been scrambling to buy IDT Australia's shares following the release of a positive yet brief announcement at the end of last week.

That announcement revealed that the Australian Government's Department of Health has been in touch with the company in respect to support in manufacturing COVID-19 vaccines.

According to the release, IDT Australia is now undertaking a feasibility assessment to assess the possibility of utilising its sterile manufacturing facility to supplement the production capability for a COVID-19 vaccine.

What next?

At this stage, no further details have been released. However, the company intends to provide the market with updates as and when additional information comes to hand.

Though, given its experienced team of specialists and world class facilities, the company appears well-positioned to help with the vaccine manufacturing.

But because of the unknowns, investing at this stage is very high risk. After all, nobody knows just how much revenue would be generated should the company be given a contract.

IDT Australia isn't the only company that investors have been buying shares of for this reason.

The Probiotec Limited (ASX: PBP) share price has also risen strongly over the last two trading sessions.

Probiotec is a leading manufacturer, marketer, and distributor of a diverse range of prescription and over-the-counter pharmaceuticals, complementary medicines, and specialty ingredients. Investors may believe it could be called into action as well.

The post Why the IDT Australia (ASX:IDT) share price is up 150% in just 2 days appeared first on The Motley Fool Australia.

The pharmaceutical company, known for producing medical cannabis products, is assessing whether its facilities would be suitable to manufacture the vaccines.

Let's take a closer look. 

Vaccine production ramps up

IDT Australia announced today it has been contacted by the Australian Government Department of Health. The company claims the department was inquiring about whether IDT Australia's Melbourne-based sterile facility could be used to supplement manufacturing of COVID-19 vaccines. 

Currently, the Federal Health Department states that CSL Limited's (ASX: CSL) Melbourne facility is the only manufacturer of the Oxford-AstraZeneca vaccine in Australia. It also states that the Oxford-AstraZeneca vaccine will be the only one to be produced in Australia.

COVID-19 vaccinations began rolling out in Australia on 22 February this year. At the time of writing, approximately 240,000 Australian's have received the vaccine.

More about IDT Australia

IDT, Institute of Drug Technology, is a commercial-scale pharmaceutical manufacturing and production company.

It specialises in manufacturing active pharmaceutical ingredients and finished form doses.

IDT Australia began manufacturing medicinal cannabis products in 2019 and, according to the company, it operates a leading facility in the medical cannabis manufacturing space.

IDT Australia share price snapshot

Following today's gains, the IDT share price is now trading at its highest levels since May 2016. 

Over the past year, IDT shares have risen by around 210%. The company's shares are also up by around 60% year to date however all these gains have occurred today. 

IDT Australia has a market capitalisation of around $44.4 million with approximately 240 million shares outstanding.

The post Why COVID-19 is launching the IDT Australia (ASX:IDT) share price 65% appeared first on The Motley Fool Australia.

3 ASX cannabis shares in the spotlight

Althea Group Holdings Ltd (ASX: AGH)  

Althea saw growth in patient numbers falter due to COVID-19 disruptions early in the pandemic. Average new patients per business day fell from more than 36 in December to less than 22 in April. But the rate of growth has since rebounded with 583 new patients added in June, meaning Althea finished the financial year with 7,295 patients. Sales, which were lower than expected in April and May, rebounded in June, which became the company's highest revenue month on record. 

Last month, Althea launched online sales of its medicinal cannabis products. Using the Althea Concierge app, patients can purchase products online and have them delivered directly to their doors, eliminating the need to visit a doctor or a pharmacy. Althea CEO, Josh Fegan, said "The ability for contactless sale is probably the biggest development yet for medicinal cannabis in Australia. You need to have a lot more than just a quality product in the highly regulated prescription cannabis space and Althea's ongoing investment in technology provides us with a premium value proposition that we believe none of our competitors possess." 

Interactions with healthcare professionals were fewer during the June quarter due to COVID-19 restrictions. In order to mitigate this, the team pivoted to virtual meetings where possible. The Althea concierge app also continued to play a role in providing virtual training and supporting health care professionals with product information and patient treatment plans. At the end of FY20, close to 600 health care professionals were prescribing Althea products. 

Althea achieved unaudited revenue of $1.59 million for the June quarter. This was a new record and up 5% on the March quarter despite COVID-19 disruptions. Unaudited revenue over the full year was $4.97 million, a 547% increase on FY19. At 30 June 2020, Althea had $10.4 million cash on hand, leaving it fully funded and in a strong position to meet its financial obligations. The strong increases in revenue despite the impacts of the pandemic have seen the Althea share price rebound strongly from its March low. This ASX cannabis share is currently trading at 35 cents, up 118% from its 16 cent low, but still 27% below its high for the year.  

Cann Group Ltd (ASX: CAN) 

Cann Group is in the medical marijuana cultivation and manufacture business. The business faced headwinds in the form of a global oversupply of cannabis earlier in the year. This combined with the coronavirus pandemic caused the Cann Group share price to fall from a January high of $1.69 to a March low of 61 cents. A July capital raising saw the share price fall further, with shares now trading at 49 cents. Cann Group raised $24.3 million of capital at an issue price of 40 cents per share, however the company's major shareholder, Aurora Cannabis Inc (Canada), did not participate. Nonetheless Cann Group says it believes Aurora remains committed to the strategic relationship. 

The coronavirus pandemic has slowed the company's progress in obtaining debt financing for the build of its Mildura growing facility. The build also requires engagement with specialist contractors based in Europe who are unable to enter Australia. Cann Group believes demonstrating an established revenue stream will strengthen its position in relation to securing external funding for Mildura. To this end, Cann Group has secured commercial supply agreements for cannabis products and dried flower for sale in Australia and to export markets including the United Kingdom and Europe. A distribution agreement is in place to deliver products to hospitals and pharmacies throughout Australia. An offtake agreement is also in place with Aurora enabling Cann Group to supply Aurora with products through to 2024. 

The ASX cannabis share can supply a broad range of products from specific cultivars in unique finished product formulations. Manufacturing arrangements with IDT Australia Limited (ASX: IDT) ensure products meet standards required for distribution in a range of markets. Cann Group is pursuing additional supply contracts with third parties in Australia and overseas. A growing revenue base and expanding supply arrangements will considerably strengthen the business case for the Mildura expansion, which the company remains strongly committed to. 

Auscann Group Holdings Ltd (ASX: AC8) 

The Auscann share price collapsed in March, falling to a low of 14 cents after trading as high as 36 cents in February. The share price has yet to recover from this fall, with shares currently trading at 15 cents. The company produces controlled dosage THC/CBD capsules and received its first orders during the June quarter. Product was supplied to Australian patients under the special access scheme. 

Recruitment and dosing was also completed during the quarter in a phase one study of the products. The study will provide information to inform dose selection and assist in prescribing the hard shell capsules. CEO, Ido Kanyon, said, "We are very excited to be progressing this important study to provide evidence-based information to medical professionals about our unique hard shell capsule. This is the first of many studies planned by AusCann to better understand and prove the benefits of using controlled dose medicinal cannabis for medical treatment."

Auscann recorded net cash outflows of $5.5 million during the June quarter, primarily due to product manufacturing and operating costs. $3.1 million was spent securing high-quality raw material for R&D and manufacture. Research and development costs of $1.1 million were also incurred mainly in relation to the clinical trial. At the end of FY20, Auscann had a cash balance of $19.2 million which will support the continued progress of its growth strategy. 

What's next for ASX cannabis shares?

The coronavirus pandemic has had a mixed impact on ASX cannabis shares. Demand for cannabis products had been growing strongly prior to the pandemic. Experts report that medicinal cannabis products get to about 1% to 2% of the population. Based on current Australian patient numbers, there is still significant growth to be seen. The key for these ASX cannabis shares will be capturing demand, both at home and abroad. 

The post ASX cannabis shares continue progress despite pandemic appeared first on The Motley Fool Australia.

As fears around the spread of coronavirus escalated, the contagion of fear infected markets, prompting a major correction. Cannabis shares were not immune from the widespread malaise, seeing market capitalisation slashed.

As February reporting season wraps up, let's take a look at how these ASX cannabis shares performed. 

Althea Group Holdings Ltd (ASX: AGH) 

Last week, Althea reported revenues of $1.85 million for the half-year, a 963.8% increase. Cost of goods sold was $787,000, up from $71,000 in the prior corresponding period (pcp). Major expenses included $2.28 million for employee benefits, $1.82 million in marketing expenses, and $2.43 million spent on professional services.

Althea reported a loss for the half-year of $8.35 million. Althea reported cash and cash equivalents of $22.36 million at 31 December 2019 and no debt.

Australia 

Althea achieved its target of 4,000 Australian patients for the half, with 4018 patients prescribed Althea medicinal cannabis products in Australia as at 31 December 2019. Despite the summer holidays, January delivered Althea's second-best month on record with 572 new patients added. Based on data published by the Department of Health, Althea patients represent 24% of all Australian medical cannabis consumers.

At the end of January, 459 healthcare professionals had prescribed Althea products.  Patient and health care professional growth means Althea expects to achieve profitability from its Australian operations in the next 6 months. 

UK

Althea launched in the UK in June 2019 and reports that the market has experienced steady growth. A total of 88 prescriptions had been received at 29 January 2020. While patient and prescription growth has been positive in the context of the introductory UK market, political uncertainty has impeded progress. 

Nonetheless, now that Brexit has been confirmed, Althea expects a period of stability will allow for greater focus on domestic affairs including the supply of medical cannabis to patients. 

Germany

In November, Althea signed a Memorandum of Understanding with Nimbus Health GmbH for the sale and distribution of Althea medicinal cannabis products throughout Germany. In Germany, public health insurers normally cover the entire fee for medicinal cannabis medications, so there is no cost to patients. 

Some 60,000 patients were treated in Germany with medicinal cannabis in 2018, with this number expected to rise to 1 million by 2024. Althea and Nimbus have made an application to German authorities for approval to import the full range of Althea cannabis oil products. Approval and shipment is expected to occur in the first half of calendar 2020. 

Outlook

Althea is performing ahead of expectations, having brought five branded medicinal cannabis products to market since 2017. Already rapid patient growth is expected to be bolstered by the recent release of Althea's latest product CBD100, one of the most highly concentrated CBD products available in the market. With Australian operations nearing profitability, Althea will be in a position to further fund its international expansion. 

Auscann Group Holdings Ltd (ASX: AC8)

AusCann reported revenues from ordinary activities of $245,953, down 45%. Expenses also decreased, falling to $3.68 million from $4.9 million in the pcp. A loss for the half-year of $3.42 million was recorded, down from the previous period's loss of $4.44 million.

The cash balance at the end of the half-year was approximately $26 million, leaving AusCann well funded to reach key milestones. Capital will be focused on the core research and development (R&D) program including clinical evaluation, product manufacturing, and commercialisation. 

Successful manufacture 

A major milestone was achieved in December with the successful development, manufacture, and testing of AusCann's proprietary cannabinoid-based hard shell capsules. Testing results validated AusCann as a commercial producer of reliable, stable, and standardised pharmaceutical products. 

R&D facility 

AusCann completed the construction stage of its product development facility in Perth during the half. Construction was completed on time and on budget with $4.5 million spent to date. Additional expenditure is scheduled for R&D equipment (within the original $6 million budget). The building will provide AusCann with a state of the art R&D facility. 

Outlook

AusCann is nearing commercialisation of its hard-shell capsules, with both standard and low-dose formulations to be available. The R&D facility provides AusCann with a platform to further develop its own cannabinoid-based medicines. As feedback on the use of AusCann's capsules becomes available, this will be incorporated into the development of new medical cannabis formulations. 

Cann Group Ltd (ASX: CAN)

Cann Group reported sales revenue of $0.57 million for the half year. The group incurred an operating loss of $8.37 million for the period, up on the $4.89 million loss incurred in the half year to 31 December 2018. Net assets at 31 December 2019 were $69.23 million, down from $77.30 million at 30 June 2019. 

Progress on Mildura facility 

Cann Group progressed plans to construct its greenhouse facility in Mildura, adopting a staged approach to construction. Stage 1A will increase production capacity to 12,500 kilos annually. Construction of two additional stages will depend on demand growth. 

Product launch

Cann Group's first locally sourced and manufactured formulations are due to be launched this quarter. Medicinal cannabis flower packed into 10 gram bottles will be made available under the Special Access Scheme and via B2B sales, with potential for export. 

Medicinal cannabis resin

At the end of 2019, Cann Group and manufacturing partner IDT Australia Limited (ASX: IDT) commenced extraction activities for the first batches of medicinal cannabis resin. IDT is to produce medicinal cannabis oil products with a targeted commercial release in late March. 

Revised business strategy

In January, Cann Group updated its business strategy in response to the current demand/supply imbalance in global medicinal cannabis markets. The updated strategy focuses on initially meeting Australian domestic demand while export markets continue to be developed. 

Outlook

Cann Group has been a victim of the supply-demand imbalance in global cannabis markets which resulted in the scaling back of the Mildura facility. Nonetheless, the group stands to benefit as the Australian market for medicinal cannabis expands. In the meantime, Cann Group is focused on reducing operating expenses while it transitions to near-term profitability and positive cash flows.  

The post How did ASX cannabis shares perform this reporting season? appeared first on The Motley Fool Australia.

Cann Group results

Cann Group reported sales revenue of $0.57 million for the half year. The group incurred an operating loss of $8.37 million for the period, up on the $4.89 million loss incurred in the half year to 31 December 2018. Net assets at 31 December 2019 were $69.23 million, down from $77.30 million at 30 June 2019. 

Progress on Mildura facility 

Cann Group progressed plans to construct its greenhouse facility in Mildura during the half, proposing a staged approach to construction. Stage 1A will increase production capacity to 12,500 kilos annually, with the construction of 2 additional proposed stages dependent on demand growth. 

The Mildura site was acquired in June 2019, with the subsequent acquisition of 2 vacant lots adjacent to the property taking place in October 2019. The glasshouse structure was completed as part of the $50 million spent on the project to date. Commissioning is expected to be completed by the end of 2020. 

Product launch

Cann Group's first locally sourced and manufactured formulations are due to be launched this quarter. Medicinal cannabis flower packed into 10 gram bottles is undergoing stability testing with resulting data expected to be available soon. Following this, a commercial launch of the product is expected. The product will be made available under the Special Access Scheme and via B2B sales, with potential for export. 

In late September, Cann Group took receipt of product from Canadian partner Aurora Cannabis. Cann Group has multiple import and export licenses that allow it to establish a consistent and reliable supply of medicinal cannabis-based medicines, without the risk of product shortages. 

Medicinal cannabis resin

Since the end of 2019, Cann Group and manufacturing partner IDT Australia Limited (ASX: IDT) commenced extraction activities for the first batches of medicinal cannabis manufactured by IDT. This represents the first commercial-scale resin extraction from Australian grown cultivars. IDT is to produce medicinal cannabis oil products with a targeted commercial release in late March. 

Revised business strategy

In January, Cann Group updated its business strategy in response to the current demand/supply imbalance in global medicinal cannabis markets. The updated strategy focuses on initially meeting Australian domestic demand while export markets continue to be developed. Concurrently, there is a focus on reducing operating expenses while the company transitions to near-term profitability and positive cash flows.  

The post Cann Group shares wilt 5% on half year operating loss appeared first on The Motley Fool Australia.

However, some of the biggest listed groups have bounced back in January and are up as much as 100% this year.

Here's why 3 of the biggest names in the booming cannabis industry have rocketed higher in 2020.

Cann Global Ltd (ASX: CGB)

Shares in this $51.61 million ASX cannabis group doubled since the start of the year, but have since pulled back to be trading for $0.016 per share, up 14.18% year to date.

The current share price is still a far cry from the stock's 52-week high of $0.051 per share set in early September.

The group re-listed in late August 2019 after previously being a mining company called Queensland Bauxite. Shares quickly sank lower and closed out the year at a 52-week low as concerns about profitability grew,

However, steady operational updates and general optimism in the sector have seen Cann Global shares climb higher in 2020.

Cann Group Ltd (ASX: CAN)

Not to be confused with its smaller rival, the Cann Group share price has been soaring higher in 2020.

The group is now the largest of the ASX cannabis shares with a market capitalisation of $215.77 million. While still very much a small-cap, the group's shares are now up 125.80% in the space of just a few weeks.

The Cann Group share price rocketed 25% higher in early January after an announcement with IDT Australia Ltd (ASX: IDT).

The 2 groups reported GMP extraction activities are underway for the first batches of medicinal cannabis resin.

Elixinol Global Ltd (ASX: EXL)

Elixinol Global is another which has seen its share price surge higher in 2020. Elixinol shares are up 86.20% after falling 5.65% lower in today's trade.

Elixinol boasts a market capitalisation of $149.62 million, which makes it one of the largest ASX cannabis groups on the market.

The Elixinol share price finished 2019 in disappointing fashion as its shares crashed to a 52-week low of $0.51 per share in mid-December.

However, renewed optimism and a bullish market have boosted the ASX cannabis company's shares higher to close today's trade at $1.08 per share.

The post Why these 3 ASX cannabis shares are flying high in 2020 appeared first on The Motley Fool Australia.

The Cann Group share price has since fallen 8.31% so far in today's trade, but overall the shares have been on a sharp upward trajectory this year. Having closed 2019 at 63 cents, the medical marijuana company has recorded gains of 144.44% in 2020 thus far. 

Cann Group background

Cann Group aims to become a leading developer and supplier of cannabis, cannabis resin, and medicinal cannabis products. The group currently has 2 cultivation facilities from which more than 50 successful harvests have been completed. All required licenses for cultivation, production, manufacture, import, and export are held by Cann Group. 

Medicinal cannabis resin extraction

A fortnight ago, Cann Group announced that extraction activities were underway for its first batches of medicinal cannabis resin. Manufacturing partner IDT Australia Limited (ASX: IDT)'s solvent extraction facilities have been utilised in respect of cannabis cultivars grown at Cann Group's cultivation facilities. This represents the first commercial scale resin extraction from Australian grown cultivars. 

The extracted resin will be used as an active ingredient to produce medicinal cannabis oil products and made available for purchase as an active pharmaceutical ingredient. Cann Group is working with IDT Australia to formulate and pack cannabis oil products. The products will undergo stability testing prior to a targeted commercial release in March. This represents a key step in allowing finished products to be produced and released into the market at scale.

The plan is for extracted resin to be formulated into a full range of medicinal cannabis finished dosage form products. Formulations including high THC, high CBD, and balanced formulations are planned. IDT Australia will formulate and pack the products, which will be made available in Australia to Special Access Scheme patients. Cann Group also intends to position the products for export to overseas markets. 

Distribution

Cann Group entered a national distribution agreement with Symbion Pty Ltd in November. Under the agreement, Symbion will distribute medicinal cannabis products imported and produced by Cann Group for supply to approved Special Access Scheme patients. Symbion supplies healthcare services and products to more than 4,000 pharmacies and 1,300 hospitals across Australia. 

Outlook

The prospect of the company moving into the commercialisation phase of the business has tantalised investors who are eager to see the company execute on its plans to satisfy domestic demand and develop valuable export pathways.

Although still well up from last years lows, Cann Group shares have retreated somewhat from yesterday's highs today and are currently trading at $1.55. Long-term investors are no doubt hoping Cann Group can successfully execute on its plans and boost the share price above last year's highs of over $2.50.

The post The ASX cannabis share hitting fresh highs in 2020 appeared first on The Motley Fool Australia.

In morning trade the cannabis company's shares are up 25% to $1.26.

Why is the Cann Group share price rocketing higher on Tuesday?

Investors have been scrambling to buy Cann Group's shares this morning after the release of a joint announcement with its manufacturing partner IDT Australia Limited (ASX: IDT).

According to the release, GMP extraction activities are underway for the first batches of medicinal cannabis resin.

This extracted resin will be used as an Active Pharmaceutical Ingredient (API) in formulation and packaging activities at IDT to produce GMP medicinal cannabis oil products. It will also be made available for purchase as an API.

Once formulated and packed, the cannabis oil products will undergo stability testing to support a targeted commercial release in late March of this year. Management notes that this is a key step in allowing finished products to be produced and released into the market at scale.

What's next?

The release explains that the extracted resin will be formulated into a full range of GMP medicinal cannabis finished dosage form products. This includes formulations featuring high THC, high CBD and balanced formulations.

These products will be formulated and packed by IDT and made available via the Special Access Scheme (SAS) to Australian prescribers and patients. They will also be positioned for export to markets overseas.

Cann Group's CEO, Peter Crock, believes this is a milestone for the company.

He said: "This facilitates the manufacture of finished product formulations and puts us a step closer to launching our own locally sourced and produced range of medicinal cannabis treatments to satisfy both domestic demand and to help develop valuable export pathways."

Also on the rise this morning is the MGC Pharmaceuticals Ltd (ASX: MXC) share price. Its shares are up 6% following the announcement of the launch of a new cannabis product line in the ANZ market.

The post Why cannabis company Cann Group is rocketing 25% higher on Tuesday appeared first on The Motley Fool Australia.

At the time of writing the cannabis company's shares are up 20% to 51 cents.

Why is the Cann Group share price rocketing higher?

Investors have been buying Cann Group's shares after it released an update on the medicinal cannabis products it is manufacturing with IDT Australia Limited (ASX: IDT).

According to the release, the first commercial medicinal cannabis product from its Australian-based cultivation operations has been packed by IDT Australia under cGMP conditions.

It will now undergo stability testing ahead of release in the first quarter of 2020.

What is Cann Group producing?

Cann Group is packing medicinal cannabis dried flower into 10g bottles in IDT Australia's licensed cGMP manufacturing facilities.

This product will be made available to Australian patients early in 2020, who can access the product under the Special Access Scheme (SAS).

Cann Group has a national distribution arrangement with Symbion Health, which will ensure product is available via Symbion's extensive network of retail and hospital pharmacies.

The first commercial product will initially be utilised for Australian domestic requirements, but Cann Group has its eyes on international markets.

It notes that it recently completed its first export of Australian grown and packaged medicinal cannabis dry flower to Aurora Cannabis in Canada. Whilst this is strictly for research purposes, management feels it is an important validation of export pathways ahead of future commercial supply.

Cann Group CEO, Peter Crock, believes this represents a significant milestone in the commercialisation phase of the business.

He said: "IDT has demonstrated a clear capability to manufacture cGMP medicinal cannabis products. As Cann Group increases our cultivation and production capacity at the new Mildura facility, it is critical that we have the ability to efficiently convert that material into commercial formulations."

Things certainly are heating up in the industry. Earlier this week AusCann Group Holdings Ltd (ASX: AC8) announced the impending release of its first cannabis products.

The post Why this ASX cannabis share is rocketing 20% higher today appeared first on The Motley Fool Australia.

Four shares in particular have been performing strongly today. Here's why they have rocketed higher:

a2 Milk Company Ltd (Australia) (ASX: A2M) shares are up 6% to $2.09 after the dairy company provided the market with a trading update at its AGM. For the July to October period a2 Milk reported staggering profit before tax growth of 536% to NZ$35 million. Any fears over slowing growth in China can be dismissed. During the period the company experienced incredible demand for its products in the country.

Billabong International Limited (ASX: BBG) shares are higher by 9% to $1.18. At its AGM today the surfwear retailer advised that although it has had a soft start to the year, it still expects EBITDA before significant items to be in the range of $60 million to $65 million. If it delivers on its promise, it will be an improvement of between 4.3% and 13% on last year's result.

IDT Australia Limited (ASX: IDT) shares have jumped over 8% to 20 cents after it announced that growing pharmaceutical company Mayne Pharma Group Ltd (ASX: MYX) has launched IDT's generic temozolomide capsules into the U.S. market. The drug is used for the treatment of adult patients with newly diagnosed cancerous brain tumors concomitantly with radiotherapy and thereafter as a maintenance treatment. The market is estimated to be worth up to US$150 million per year at present.

Technology One Limited (ASX: TNE) shares are up 9% to $5.78 following the release of its preliminary final results. For the year ended 30 September 2016 the company reported a 14% jump in sales to $249 million and a 16% increase in net profit to $41.3 million. Technology One's software-as-a-service business was a key driver of growth in increasing segment sales by over 100% for the second year in a row. But at 44x full year earnings it might be getting a little expensive now in my opinion.

The post Why these 4 ASX shares are soaring today appeared first on The Motley Fool Australia.