The BOD Australia Ltd (ASX: BDA) share price is on the run today following a positive update from the company regarding an uptick in sales. During the opening minutes of today's market, shares in the cannabis healthcare company rose as high as 54 cents. However, at the time of writing, the BOD share price has slightly retreated to 51 cents, up 4.1% so far today.
Let's take a look and see how BOD has performed so far in the first quarter of FY21.
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What's driving the BOD share price?
The BOD share price is marching higher today after the company reported strong medicinal cannabis sales during the month of October.
In total, 755 MediCabilis prescriptions were filled, representing an increase of 106% in monthly prescription volumes since July 2019. The surge in sales was a part of a record purchase order received during the first quarter of FY21 for 2,630 units.
The company noted that since January this year, over 4,400 prescriptions have been filled. This marks a 124% uplift on 2019 calendar year volumes, which received 1,959 orders.
BOD stated that the ongoing upward trajectory in prescription volumes has significantly boosted revenue. In addition, the company said that it's seeing repeat customers account for 60% of October volumes, reinforcing patient satisfaction.
Dominant market share
Supported by the surge in demand for its MediCabilis product, BOD revealed its market share has amplified. The company reported that it now has 57% market share in full-plant, high CBD products in Australia.
Furthermore, BOD anticipates that robust sales will continue over the coming months due to increased brand recognition. This follows the company's nationwide clinical observation study that was announced in July this year.
CEO commentary
BOD CEO, Ms Jo Patterson, commented on the sales growth recorded last month, saying:
While MediCabilis is being prescribed for a range of chronic conditions, we are currently achieving strongest uptake amongst patients suffering from chronic pain and anxiety. These conditions require the use of a pharmaceutical grade, standardised and consistent product, which is one of the key advantages of MediCabilis.
Strong demand for our MediCabilis product range in Australia will continue to add to our growing revenue profile and we are confident that sales will continue to increase.
About the BOD share price
The BOD share price has been storming higher since March and is now beginning to approach its all-time high of 64 cents reached in July, 2019.
Recent developments, such as the company entering the Netherlands market and attaining record orders, have presumably been pushing the BOD share price higher.
BOD is hopeful that, as it seeks to expand its offering to new geographical markets, this will lead to further growth opportunities.
