June 8, 2020 | Market Watch
Dr. Dadi Segal, CEO of Panaxia Global, said, “Panaxia started 2020 with a strong quarter boasting expanded operations, record quarterly revenues, and a shift to gross profit. Concurrently with increasing the number of patients in Israel, we are on track to initiate export and commercial sales in Europe later this year. We have reached several strategic and financial achievements in the first quarter, including progress in the regulatory registration of our products in Germany and Denmark.”
Dr. Segal continued, “We look forward to receiving the export license to start exporting to these and other target countries immediately. Even if the export license is delayed, we believe the completion of the production facility in Malta will allow us to expand our sales to Europe, as a provisional alternative until exports from Israel begin.”
In the first quarter of 2020, the Israeli subsidiary, Pharmaceutical company Panaxia Labs Israel Ltd. (Panaxia Israel)(TASE: PNAX), the largest manufacturer of medical cannabis products in Israel, reports record revenues of 12.2 million, an increase of approx. 83% compared with the revenues in the fourth quarter of 2019, and a 365%-increase (over X4 times) compared with the revenues in the first quarter of 2019. The consecutive, 10-quarter revenue growth is attributed to the expansion of the production, marketing, and home deliveries operations, as well as to the transition of working under the new Israeli cannabis regulation, which provides the Panaxia Israel with higher revenues per product unit. During the first quarter, Panaxia Israel continued to expand its patient base, as well as the number of products it delivered. The company estimates that the COVID-19 crisis, which started in the last two weeks of the quarter, has helped reinforce this trend with an additional increase in demand for products and home deliveries.
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