CV Sciences Inc (OTCMKTS:CVSI) announced Wednesday that it expanded CBD product sales sequentially by 10% to $13.6 million in the third quarter from $12.3 million in sales in the second quarter.
The Henderson, Nevada-based life science company is growing a cannabis-based business that's making headway on the pharma and consumer levels.
The company posted a record gross profit of $9.94 million in the third quarter, an increase of 149% compared to the third quarter in 2017.
“We are encouraged by our performance as we delivered another strong quarter, including our third consecutive quarter of profitability,” said CV Sciences CEO Joseph Dowling in a statement.
“This was led by initiatives that include accelerating our brand recognition and brand loyalty and growing sales distribution channels that have generated triple-digit year-over-year revenue growth and double-digit sales growth on a sequential quarterly comparison,” he added.
READ: CV Sciences is growing a cannabis-based business that's making headway on the pharma and consumer levels
The company has expanded retail channel distribution to 2,093 stores and launched a new category of CBD oil products, called PlusCBD Oil Gummies which are offered in two flavors, Cherry Mango and Citrus Punch. It’s a line extension of the company’s Gold Formula line with no artificial ingredients, each gummy contains 5 mg of CBD and a mere 1.5 grams of sugar.
CV Sciences is a $289 million life science company managing two distinct business segments. The company’s specialty pharmaceutical business focuses on developing synthetic cannabinoids to treat a variety of medical conditions.
Its lead drug candidate, CVSI-007, is a cannabidiol (CBD) and nicotine combination therapy designed to support the cessation of smokeless tobacco addiction. CVSI management hopes to complete preclinical studies during the third or fourth quarter 2018 and submit an Investigational New Drug (IND) application between the end of 2018 and early 2019 and begin clinical trials in 2019.
The other is a consumer product division focused on manufacturing, marketing and selling plant-based CBD products under their PlusCBD brand. Currently, revenue generated from consumer products segment is funding the company’s capital needs.
Despite the healthy profit and sales numbers, the stock fell 12.9% to $5.36 on profit-taking.
Contact Uttara Choudhury at [email protected]