viewMedlab Clinical Ltd

Medlab Clinical targets chronic diseases with nutraceutical-pharmaceutical pipeline


The company’s assets include medical cannabis pharmaceutical solutions to help people manage pain.

Medlab Clinical Ltd - Medlab Clinical targets chronic diseases with nutraceutical-pharmaceutical pipeline

Quick facts: Medlab Clinical Ltd

Price: 0.195 AUD

Market: ASX
Market Cap: $54.54 m
  • The company has two key divisions, pharmaceutical and nutraceutical. 
  • Medlab’s nutraceutical divisions allow for revenue generation, brand and company valuation building activities. 
  • The pharmaceutical division also brings in revenue but in small sums as the company led by business builder Sean Hall commercialises its pipeline. 

This (American Nutritional Corp US-nutraceuticals) agreement provides a great opportunity to expand the commercialisation opportunities for Medlab into such a large market like the USA.

Having access to clients of this calibre and being able to tap into their supply chains is very exciting.

Medlab Clinical managing director & CEO Sean Hall

What does Medlab Clinical do?

Medlab Clinical Ltd (ASX:MDC) is a cannabis drug developer and nutraceutical products manufacturer based in Australia.

The seven-year-old company is targeting chronic disease management with its pipeline.

It is entering the US nutraceuticals market with the help of a partner, American Nutritional Corp Inc (ANC).

NSW-based Medlab has nutraceutical and pharmaceutical divisions and hopes to improve choices for people with chronic diseases, offering medical cannabis pharmaceutical solutions for people in need of help with pain management.

Medlab is taking a registered medicinal cannabis drug through a clinical trial program and is commercialising the therapeutic with direct product sales and distribution partnerships for global markets.

The company listed on the ASX in mid-2015 and has a number of offices globally, with representatives in the US, UK and Malta.

Who leads Medlab Clinical?

The company is led by its founder, managing director & CEO Sean Hall, a doctor and finance professional who has undertaken higher degree research into simplifying clinical trial progress.

The commercialisation specialist has more than 21 years’ experience in industry, holding a number of senior executive positions over the past two decades.

Hall was previously chief executive officer of FIT BioCeuticals and served 14.5 years with the leading practitioner-referred company which he sold to Blackmores in mid-2012.

Who is Medlab Clinical targeting?

The cannabis drug and nutraceutical products developer and marketer has a broad reach for its potential client base.

Medlab is targeting people with chronic diseases with its pipeline, giving it potential exposure to a large number of people across the world.

More than 11 million people, or half of Australia’s population, had a chronic disease in 2014-15.

About one in three problems in general practice that year were associated with chronic diseases.

These chronic diseases are key indications for Medlab’s pipeline and are: obesity, cardiovascular disease, chronic kidney disease, musculoskeletal conditions, respiratory conditions, cancer, endometriosis and eye health.

The conditions are particularly common in Western markets with ageing populations.

About 87% of people aged 65 years or older had one of the eight diseases in 2014-15, while 35% of people in a newborns-to-age-44 category had a chronic disease.

More than one in three preventable hospitalisation the previous financial year was put down to one of the eight chronic diseases.

What is Medlab Clinical’s revenue base?

Medlab has a market capitalisation of about A$80.8 million and had A$6.9 million cash at the end of September 2019.

The Australian junior company is taking a nutraceuticals revenues approach to its commercialisation.

It increased revenues 46% in financial year 2019 and cash collections 24% in the same period to end June 2019 with $15 million in assets.

Trade receivables were $1.8 million in the year ended June 2019, with a $25,000 expected credit loss allowance.

Medlab is facilitating an introduction of the products to world markets and then using the income help support its therapeutics pipeline.

The company’s nutraceutical business collected A$2.4 million of nutraceutical and pharmaceutical revenues in the September quarter of 2019, a 96% quarter-over-quarter increase on the September 2018 quarter.

Medlab then banked a $2.1 million R&D tax incentive payment from the Australian Government after quarter’s end in October 2019.

The company’s pharmaceutical division took a 1,500-unit order for its newest cannabinoid NanoCBD in the September 2019 quarter.

The Hong Kong client has already taken receipt of the product and paid a deposit.

Medlab’s pharma division solidly increased the number of products it dispensed under a special access scheme in the September 2019 quarter, primarily through lead product NanaBis dispensations.

The company reported a 273% year-on-year revenue increase, in its November 2019 annual general meeting presentation, and a 45% September-on-September-quarter revenue increase.

Medlab received its first NanoCBD export order in October 2019, with revenues from the order already hitting the company’s bank account this quarter.

Inflection points

  • Pharmaceutical and nutraceutical business revenues
  • Financial milestones and significant transactions
  • Revenue growth expansions and eventual profit
  • M&A activity in the Australian biotechnology industry and its various sectors

A copy of Medlab Clinical’s annual general meeting presentation from November 2019 is available from the company’s website, www.medlab.co.

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