In this week's "Rising High," The Fly's recurring series focused on cannabis and psychedelic stock news, The Fly looks back on earnings, a partnership and study results.
GREEN THUMB REPORTS Q1 EARNINGS: Green Thumb Industries (GTBIF) reported on Wednesday first quarter earnings per share of 12c on revenue of $242.6M, which compared to EPS of 5c on revenue of $194.4M for the same period last year. CEO Ben Kovler said, “We continue to have strong conviction in our core thesis and given the opportunity ahead, we will invest in markets where we know demand is coming. As I have said before, growth is not linear and there will be quarter-to-quarter fluctuations depending on when new markets open to adult-use sales as well as the timing of our infrastructure investments. Our preparations in New Jersey positioned us well for demand on Day One, and we feel confident in our playbook for future adult-use transitions.”
Following the report, Needham analyst Matt McGinley lowered the firm's price target on Green Thumb Industries to $26 from $33 and kept a Buy rating on the shares. The company's "flat revenue" in Q1 was "better than assumed", but labor and raw material inflation combined with a price decline pressured margins more than expected, the analyst said. Operating leverage from volume and revenue growth will be required to offset margin pressure, but with stabilization in category trends into Q2, the New Jersey opening, and cultivation in four states opening in the second half of the year, he expects to see recovery in rate as the year continues.
Additionally, Craig-Hallum analyst Eric Des Lauriers lowered the firm's price target on Green Thumb Industries to $25 from $35 to reflect broader market valuation contractions. The analyst kept a Buy rating on the shares following quarterly results.
Meanwhile, Alliance Global Partners analyst Aaron Grey lowered the firm's price target on Green Thumb Industries to C$38 from C$40 and kept a Buy rating on the shares. While margins could come in below management target given pricing pressure, the company should return to targets as it benefits from new adult-use states with New Jersey being the first of four states with adult-use sales to begin sales, Grey said.
ENTOURAGE PARTNERS WITH PINEAPPLE EXPRESS: Entourage Health (ETRGF) announced Wednesday it has entered into an agreement with Fire & Flower Holdings (FFLWF) and its wholly owned delivery and logistics subsidiary, Pineapple Express Delivery to offer same-day and next-day delivery services to the company's Starseed Medicinal patients. The service will be available to Starseed patients residing within select areas in Ontario, effective as of mid-May 2022. At checkout, eligible patients may select same-day or next-day delivery services within Starseed's online marketplace. Starseed patients will receive real-time tracking, customer support, and optional notification alerts to track status via Pineapple Express' industry leading logistics technology.
COMPASS PATHWAYS REPORTS COMP360 DATA: COMPASS Pathways (CMPS) announced Tuesday that data demonstrating the potential of COMP360 psilocybin therapy in anorexia nervosa and severe treatment-resistant depression has been presented at the Society of Biological Psychiatry Annual Meeting in New Orleans, from two investigator-initiated studies. The first study looked at the safety and efficacy of COMP360 psilocybin therapy in patients with severe treatment-resistant depression, with a single 25mg dose. All participants had tried at least five antidepressant treatments without success, prior to joining the study. The researchers found that 58.3% of the participants had maintained response criteria, for the Montgomery-Asberg Depression Rating Scale at 12 weeks after COMP360 psilocybin administration, and a quarter had maintained remission. There was no increase in the suicidality score based on the MADRS, and no serious adverse events were reported throughout the study. The data was presented at the conference on poster F120. The second study investigated the safety, efficacy, and tolerability of COMP360 psilocybin therapy in patients with anorexia nervosa, with a single 25mg dose. 30% of participants experienced clinically significant reductions in eating disorder psychopathology at the 1-month follow up, and 40% experienced clinically significant reductions at the 3-month follow-up. Participants demonstrated statistically significant reductions in shape concerns at the 1-month follow-up, and statistically significant reductions in eating concerns at the 3-month follow-up. Changes in weight concerns were approaching statistical significance. COMP360 psilocybin therapy was well-tolerated and 90% of participants found the experience to be meaningful and therapeutic. No serious adverse events were reported.
WESANA TO CONDUCT STRATEGIC REVIEW: Wesana Health Holdings (WSNAF) announced Thursday that following the completion of an initial tranche of its previously announced private placement, the company has determined to move forward with a strategic review of Wesana’s care delivery division. “Over the past year, we have grown two distinct divisions reflecting our novel paradigm of care development and care delivery,” said CEO Daniel Carcillo. “This approach served the company well and allowed us to bring leading edge therapies to individuals in need of care while driving forward a sophisticated drug development program. As we plan for our next milestone of an expanded lead indication for SANA-013 consistent with the positive feedback from FDA, it is now time to streamline our focus to accelerate the development of SANA-013, including initiation of a Phase 1b/2a human study for Major Depressive Disorder in H1 2023.” The company is reviewing strategic alternatives including, but not limited to, a sale of all the assets under the care delivery division, including: Wesana Clinics, a network of psychiatrist-led mental health clinics, Wesana Solutions, a medical-grade clinical SaaS platform, and PsyTech Connect, a community for the clinical use of psychedelics.
TILRAY PRICE TARGET LOWERED: Alliance Global Partners analyst Aaron Grey lowered the firm's price target on Tilray (TLRY) on Monday to $5.50 from $8 and kept a Neutral rating on the shares following the company's recent analyst day in Atlanta. Management provided incremental color on its target of $4B in revenue by FY24 at the event, but he continues to believe the path to $4B "embeds a number of factors outside of its control," including the legalization of adult-use cannabis in Germany and the U.S. as well as a more rational Canadian market. Grey said he believes this "could prove a difficult task”.
OTHER CANNABIS/PSYCHEDELIC STOCKS: Publicly-traded companies in the space include Acreage (ACRHF), Akerna (KERN), Aleafia (ALEAF), Atai Life Sciences (ATAI), Awakn Life Sciences (AWKNF), Audacious (AUSAF), Aurora Cannabis (ACB), Ayr Wellness (AYRWF), BC Craft (CRFTF), Body and Mind (BMMJ), CanaFarma (CNFHF), Cannara Biotech (LOVFF), Canopy Growth (CGC), RIV Capital (CNPOF), Chicago Atlantic (REFI), Columbia Care (CCHWF), CordovaCann (LVRLF), Clever Leaves (CLVR), Cresco Labs (CRLBF), Cronos Group (CRON), CV Sciences (CVSI), Curaleaf (CURLF), CURE Pharmaceutical (CURR), Delic Holdings (DELCF), Delta 9 (DLTNF), Flora Growth (FLGC), FluroTech (FLURF), General Cannabis (CANN), Goodness Growth (GDNSF), Greenlane (GNLN), GrowGeneration (GRWG), Harborside (HBORF), Hemp (HEMP), HEXO (HEXO), High Tide (HITI), Innovative Industrial Properties (IIPR), IM Cannabis (IMCC), India Globalization Capital (IGC), Indiva (NDVAF), InterCure (INCR), Wellbeing Digital (KONEF), Khiron Life Sciences (KHRNF), Lowell Farms (LOWLF), Lotus Ventures (LTTSF), MediPharm (MEDIF), MedMen (MMNFF), MJardin Group (MJARF), Neptune Wellness (NEPT), NewLake Capital (NLCP), Thermic Science (ENDO), Organigram (OGI), Planet 13 (PLNHF), Relmada (RLMD), RYAH Group (RYAHF), Sproutly (SRUTF), Stem Holdings (STMH), Small Pharma (DMTTF), Skye Biosciences (SKYE), Sundial Growers (SNDL), Sunniva (SNNVF), TerrAscend (TRSSF), Tetra Bio-Pharma (TBPMF), Trulieve (TCNNF), Valens (VLNCF), Verano Holdings (VRNOF), Village Farms (VFF), Zynerba (ZYNE) and 4Front Ventures (FFNTF).
Green Thumb Industries
-0.22 (-1.69%)
Entourage Health
+
Fire & Flower
+0.09 (+3.50%)
Compass Pathways
-0.39 (-4.11%)
Wesana Health
+
Tilray
-0.35 (-6.59%)
Aurora Cannabis
-0.25 (-7.82%)
CV Sciences
+
CannTrust
+
Canopy Growth
-0.45 (-6.72%)
Cronos Group
-0.175 (-5.39%)
Trees Corporation
+
Goodness Growth
-0.02 (-1.20%)
IGC Pharma
+
Trulieve Cannabis
+0.01 (+0.07%)
ZYNE
+
Relmada Therapeutics
-0.96 (-3.96%)
Atai Life Sciences
-0.35 (-7.97%)