The Bod (ASX: BDA) share price has surged 21% today following the release of a positive trading update. Here’s what the company announced.
The post Up 21%, why the Bod (ASX:BDA) share price is smoking the market today appeared first on The Motley Fool Australia. –
At the time of writing, shares in the cannabis healthcare company are trading 21.6% higher at 45 cents. In comparison, the All Ordinaries Index (ASX: XAO) is 0.56% in the green, sitting at 7,338 points.
What’s driving the Bod share price higher?
Investors are fighting to get a hold of Bod shares after the company advised it has achieved its highest ever month of medicinal cannabis sales.
In total, 1,789 MediCabilis prescriptions were fulfilled in Australia during the month of April. This represents an 11% increase on the previous record month, in which March delivered 1,617 prescriptions. For the FY21 period, the company has sold 9,519 units, marking a 138% jump on FY20 levels.
Roughly 27% of the total special access scheme category B prescriptions were filled across Australia last month. Overall, this category accounted for 6,682 completed prescriptions, reflecting continued momentum.
Bod stated that 64% of the sales orders dispensed in April came from repeat prescriptions. This highlights patient and physician product satisfaction while generating consistent and recurring revenue.
Bod CEO Jo Patterson touched on the company’s performance, saying:
MediCabilis volumes continue to grow at a very pleasing rate and the recent prescription sales growth further highlight Bod’s ability to generate strong revenues across one of the company’s two core operating divisions.
The company has a number of new products in the pipeline that will be launched imminently. We anticipate that the introduction of new products and scale up of operations across both business divisions will unlock considerable value for shareholders.
Bod share price review
Despite today’s meteoric rise, Bod share price has lost 6% since the beginning of 2021. It’s worth noting though, the company’s shares mostly accelerated at the back end of last year, before recently treading lower.
Based on today’s prices, Bod presides a market capitalisation of about $39 million, with approximately 105 million shares on issue.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.