Pharmaceutical manufacturer IDT Australia is seeing a surge in sales as demand for medical cannabis products rises and companies seek out more capable contract development and manufacturing organisations (CDMO).
The Melbourne company told investors that revenues increased for the fourth quarter, with 4QFY23 revenue up 200 percent on the previous corresponding period to $2.4 million.
Fourth quarter revenue was up 12 percent on the previous quarter with the company’s specialty oral products contributing significantly, reenergising the company’s Active Pharmaceutical Ingredient vertical which recorded a revenue rebound.
Tighter manufacturing regulations for cannabis products have seen customers migrate towards higher quality manufacturers such as IDT, with the company also benefitting from the opening up of the psychedelics market in Australia.
IDT Chief Executive Officer Paul McDonald said: “We have only just entered the new financial year and the large number of proposals issued and potential leads in the pipeline put us in a strong position to deliver significant growth in revenue in FY24.
“With our unique world-class facilities, expanded capabilities and market leadership position, we are well placed to benefit from several medium to longer-term industry tailwinds with demand for CDMO services forecast to grow over the coming years.
“We are also building momentum in the advanced therapies vertical and in particular targeted cancer therapies.”
The company has also been emphasising marketing, attending several conferences such as BIO International Convention in Boston, BioMelbourne Network & MRNA Victoria, and Medical psychedelics. In Boston IDT was part of the Global Victoria and Australian Trade Commission delegations.
“The benefits of IDT’s investments in these business development initiatives are becoming very evident.
“IDT has successfully generated more than 60 early-stage leads, up from 18 leads in the March 2023 quarter.”
The company said the total value of proposals submitted by the company stood at $30 million, though there was no guarantee leads would lead to sales.
Picture: IDT Australia