Business Update - FY19 Q1 September Quarterly Report
Melbourne, Oct 31, 2018 AEST (ABN Newswire) - Rhinomed (
ASX:RNO) (RHNMF:OTCMKTS) a leader in nasal delivery technology, today announced its 7th consecutive quarter on quarter of revenue growth. Positive trading conditions saw unaudited recognised revenues increase 30% over FY18 Q4 to $1.14m(see Note below) for FY19 Q1.
This strong growth represents a 273% increase over the same corresponding period in Q1 of FY18.
TOPLINE
- Quarterly Revenues continue to grow - up to $1.14 million
- 7th consecutive quarter on quarter of Revenue growth
- New accounts to push US store count to 9000+, global store count to 11,000+
- Signs landmark nasal drug delivery licensing deal with US medical cannabis leader - Columbia Care
During the quarter the company also successfully shipped stock to new retail partners CVS and Rite Aid who have now begun stocking Mute on the shelves of an additional 4500 stores (1500 CVS stores) and 3000 Rite Aid stores. Revenues from these new accounts, in line with Accounting standards, is not included in this Quarter's result. The unaudited revenue result for Q1 is particularly pleasing given we enter FY19 Q2 with double the US store count that we had at the beginning of FY19 Q1.
During the course of the Quarter a further 62,000 units were shipped to customers with a value of an additional $897,000 in unaudited invoiced sales being added. Accounts receivable now stand at $1.5 million.
Net Cash used in Operating Activities was $918k. Cash receipts of $522k lag revenues in line with trading terms. The company ended the quarter with $348k in cash and has yet to draw down on the existing $2m working capital facility.
Landmark Nasal Drug Delivery partnership with Columbia Care
The company completed a landmark nasal drug delivery licensing deal with US based Columbia Care at the end of September.
This deal will see Rhinomed's nasal platform used by Columbia Care to deliver nasal medical cannabis formulations. The agreement covers a portfolio of potential products across both consumer health and clinical settings that would initially be sold through Columbia Care's US based dispensary network. The US is the largest and one of the fastest growing cannabis markets in the world.
Under the terms of the agreement Rhinomed will optimise its platform for delivery of cannabinoid formulations and supply the customised product to Columbia Care. Columbia Care will manufacture and place specific pharmaceutical formulations onto the platform in its facilities in the U.S. Rhinomed will retain all intellectual property rights to its drug delivery platform.
The agreed revenue model will see Rhinomed receive cost plus a double-digit royalty fee on a per product basis. In addition, Rhinomed will also receive a further double-digit share of net profits that varies based on the retail channel - with a greater share for product sold through its retail channels.
Rhinomed notes that while it is too early to assess whether the impact of this deal will affect its 2019 revenues the company has been steadily working to unlock shareholder value by strategically opening up new industry verticals such as drug delivery, following the widespread and successful distribution and adoption of its Mute nasal stent product.
Business development
Interest in the company's technologies from the sleep medicine community continues to grow at a rapid rate. This strongly illustrates the growing recognition of the importance of the nose and nasal resistance and airflow and its impact on both efficacy and compliance with a range of other sleep therapies, including CPAP and oral devices.
Future
The key focus of the company remains reaching a sustainable cash flow position. The growth in store numbers provides the company with a strong base from which it can build a steady and strong growth in customer numbers.
Rhinomed continues to build a reputation and be recognised as an innovator and global leader in improving nasal drug delivery, airflow, breathing and sleep. The strong interest in the company's progress continues to open up opportunities for strategic relationships that will further assist the company to expand its footprint.
Note: All financial figures contained in this Announcement are provided on an unaudited bases
To view figures, please visit:
http://abnnewswire.net/lnk/4RK0U11M
To view Investor Update Presentation, please visit:
http://abnnewswire.net/lnk/JX36O040
About Rhinomed Limited
Rhinomed Limited (ASX:RNO) is a Melbourne based technology firm with a focus on nasal, respiratory and breathing management technologies. The company is seeking to monetise applications of its technology portfolio in the Sport, Sleep, Wellbeing and Drug Delivery markets. For more information, go to www.rhinomed.global
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