Zelira Therapeutics well-placed to build on considerable March quarter momentum

Zelira Therapeutics Ltd (ASX:ZLD) (OTCQB:ZLDAF) (FRA:G1G) is well placed to build on the considerable momentum generated during the March quarter by launching new products and expanding into new geographies, according to managing director Dr Oludare Odumosu. With a suite of new products planned for launch over the next two quarters, he said Zelira was confident in its ability to generate further growth in revenue via diversified income streams. Multiple growth paths Zelira has multiple growth paths available across pharmaceutical-grade THC-containing products - which are highly regulated - as well as a growing portfolio of consumer brands focused on the medical benefits of CBD. In its quarterly report, Zelira outlined that Australian operations remain an important part of the company as it strengthens its focus on global markets, in particular the US.  Its Australian operations remain a core, with world-class clinical trials to continue to be conducted in Australia and managed by Australian-based employees. Other global markets with large populations, capacity to pay and legal at a national level are also a strong focus, and include Germany and the UK.  Strongest quarterly cash receipts Dr Odumosu said: “The March quarter performance is the strongest quarterly cash receipts reported for Zelira Therapeutics since its inception and clearly demonstrates the start of the company’s revenue ramp-up. “Our long-term focus to develop a portfolio of clinically validated and scientifically formulated cannabinoid medicine and consumer products is starting to bear fruit as commercialisation ramps up." SprinjeneCBD drives growth During the third quarter ended March 31, 2021, Zelira delivered record cash receipts of A$225,000, driven largely by the successful December 2020 launch of the SprinjeneCBD oral care product in the US and licensing payments. The figure was up 249% on the first half of financial year 2021. Cash receipts included $0.2 million mainly generated from sales of SprinjeneCBD Toothpaste and licence payments. Appointed to National Cannabis Roundtable In February 2021, Zelira was appointed to the National Cannabis Roundtable (NCR) in Washington DC, with Odumosu sitting on the NCR board. The NCR is a non-partisan advocacy group focusing on federal cannabis reform in the US and is seeking to balance respect for state-legal cannabis programs with common-sense federal regulation to realise the full potential of the legal cannabis industry for patients, consumers and as a driver of the American economy. Dr Odumosu said: “The manner that the Federal Government handles reform will have fundamental impacts on the people we serve. “Zelira is committed to bringing breakthrough therapeutics to market and we need to have a regulatory framework in place that will allow research to expand and grow on a Federal/National level.” Next growth phase In February 2021, Zelira announced management changes aimed at strengthening its focus on global markets, and in particular the US. The company’s commercialisation plans are focused on generating revenues from the multiple products it has launched into the Australian and US markets and continuing to launch new product lines. Zelira will also progress additional licensing discussions for HOPE™ and Zenivol™ in the US and look to conclude ongoing negotiations to expand the distribution of these products into other global markets including Germany and the UK.