At time of writing, the share price of Creso Pharma Ltd [ASX:CPH] is up more than 10%, trading at 21.5 cents.
Here’s the how the last five years played out for the CPH share price:
From a high in late 2017, CPH was caught in a savage long-term downtrend until it levelled out in mid-2020.
A bout of sideways trading resulted in a big pop upwards in December.
We look at how CPH turned things around and what pushed the CPH share price higher today.
Announcement on CBD market builds excitement after initial surge
Here are the key points from today’s announcement:
- ‘Low-dose CBD products can now be sold over-the-counter in Australian pharmacies as of today (1 Feb 2021)
- Follows TGA’s decision to down schedule low-dose CBD products from Schedule 4 (Prescription Medicine) to Schedule 3 (Pharmacist Only)
- Unlocks a market estimated to exceed $200m per annum1
- Creso is well placed to capitalise through agreement with Martin & Pleasance which provides access to over 4,000 pharmacies across Australia
- Collaboration with Martin & Pleasance progressing well, with both parties working to define regulatory pathways and business cases to grow Creso’s Australian footprint
- Creso anticipated this legislation and regulatory approval and is in a strong position to capture the Australian Market
- TGA regulatory approval is demonstrative of a growing global trend towards relaxation of legislation, making Creso products much more easily accessible to patients
- Creso is also pre-empting further relaxations of cannabis regulations in other jurisdictions globally, including the US, and is advancing discussions with potential distribution and channel partners to position itself as a first mover in the US and other markets, at the appropriate time’
So another win for Creso, which wants to position itself as a leader in CBD products in Australia and elsewhere.
Outlook for CPH share price
A flurry of announcements combined with regulatory changes in a variety of jurisdictions. Having watched the company for a period of three years, it’s a remarkable turnaround.
From trading around 2.5 cents, it went as high as 47 cents in a short period of time before it subsequently fell back
I think the challenge for CPH will be to continue making progress on receipts from customers and capitalise on the regulatory changes that favour them.
I cover CPH in depth in the video below:
For Money Morning