Bioxyne Expands Manufacturing Agreement with Aura Therapeutics
BXN (BXN) Share Update September 2024 Monday 23rd
Bioxyne Expands Agreement with Aura Therapeutics, Projects $5.94 Million in Annual Sales
Bioxyne Limited (ASX:BXN), an Australian pharmaceutical and consumer health products company, has announced an amendment to its manufacturing and supply agreement with Aura Therapeutics, projecting up to $5.94 million in annual sales.
Instant Summary:
- Bioxyne's subsidiary Breathe Life Sciences (BLS) signs an addendum with Aura Therapeutics.
- Projected annual sales up to $5.94 million based on the amended agreement.
- Pastilles expected to contribute $3.14 million, with THC Flower Products contributing $2.80 million.
- Bioxyne solidifies its position as a leading manufacturer of alternative pharmaceuticals.
Agreement Details
Bioxyne Limited (ASX:BXN), through its subsidiary Breathe Life Sciences (BLS), has formalized an addendum to its existing manufacturing and supply agreement with Aura Therapeutics. This amendment introduces the production of edible cannabis pastilles and doubles the forecast volumes of THC Flower products.
Based on the terms of the agreement and forecast volumes, BLS can expect to generate up to $5.94 million in annual sales. The pastilles are projected to contribute $3.14 million, while the THC Flower Products are expected to bring in $2.80 million. This substantial increase marks a significant milestone for both Bioxyne and its customer, Aura Therapeutics.
Operational Update
Earlier this year, BLS was awarded the most comprehensive Good Manufacturing Practice (GMP) license for medicinal cannabis by the Therapeutic Goods Administration (TGA). Since then, BLS has completed initial validation batches of pharmaceutical-grade cannabis pastilles and has been scaling its manufacturing capacity to meet the growing demand in the Australian market.
Until now, pastilles prescribed to patients in Australia were manufactured overseas and imported. With the TGA awarding BLS a comprehensive GMP License, the company is well-positioned to capitalize on this emerging domestic market opportunity.
Industry Impact
Australia is rapidly becoming a global leader in medical cannabis and psychedelic medicines. BLS aims to become the leading manufacturer and supplier of GMP-certified cannabis, MDMA, and psilocybin products in Australia. The company's focus on building strong customer relationships and providing high-quality manufacturing services is expected to drive its growth in both domestic and international markets.
This announcement has been approved for release by the Board of Bioxyne Limited.
This agreement is a positive development for Bioxyne, as it significantly boosts the company's projected annual sales. The introduction of pastilles and the doubling of THC Flower product volumes demonstrate Bioxyne's capacity to meet increasing market demands. This could positively impact the company's stock price as investors respond to the projected revenue growth.
Investor Reaction:
Analysts are likely to view this announcement favorably, given the substantial increase in projected sales and the strategic expansion of Bioxyne's product offerings. The company's ability to secure a comprehensive GMP license and scale its manufacturing operations further strengthens its position in the market.
Conclusion:
Investors should keep an eye on Bioxyne's progress in fulfilling the terms of this amended agreement and its potential impact on the company's financial performance. The expansion of Bioxyne's manufacturing capabilities and product portfolio positions the company for significant growth in the alternative pharmaceuticals market.