The company develops and commercializes synthetic CBC novel therapeutics, and they also manufacture and sell plant-based CBD products to consumers. CV Sciences experienced several fourth-quarter triple-digit increases in 2017: record sales of $7.2 million (126 percent increase), record gross profit of $5.2 million (187 percent increase).
The company experienced a record 2017 gross margin of $14.4 million, up 107 percent from 2016, and record sales of $20.6 million, up 87 percent from 2016. Most improved was the company’s 2017 cash flow of $3.6 million, up an astounding 276 percent ($5.5 million) compared to 2016.
Contributing to the company’s drug development success is the company’s patent-pending synthetic cannabidiol (CBD) product known as CVSI-007; the company made significant preclinical progress last year. CVSI-007 will be administered along with nicotine as a treatment option for tobacco addiction as well as smokeless tobacco use.
The FDA currently has no approved drugs like this, and it could represent a multi-billion market for CV Sciences. CVSI-007 represents the company’s leading proprietary drug candidate. CV Sciences will pursue FDA approval for drug-specific indications that utilize CBD as the active pharmaceutical ingredient.
The company has made a significant product development investment and has also heavily invested in marketing and distribution. Each product is backed by a formal safety review and a whole host of physician recommendations and scientific case reports.
The company’s huge increases in year-over-year sales have been an organic expansion. They’ve expanded into all sales channels, particularly in the very lucrative natural product retail market. Indeed, the company has strong branding and is positioned as the #1 selling hemp product line in the natural products industry, selling both online and at over 1,500 locations nationwide—in health food stores and at healthcare provider practices.
CV Sciences has also made great strides in both the direct-to-consumer and wholesale markets, and they plan to continue developing new sales channels. In 2017, the company demonstrated their ability to expand sales while maintaining strong gross margins greatly.
CFO Joseph Dowling is very pleased with the company’s performance, saying the 2017 numbers demonstrate their ability to generate cash flow and grow profitably.
The full earnings report is available at www.cvsciences.com or on the U.S. Securities and Exchange Commission website at www.sec.gov/edgar/searchedgar/webusers.htm (Form 10-Q as filed with the SEC on March 29, 2018).
CV Sciences, Inc. operates offices and facilities in two states: Las Vegas, Nevada and San Diego, California.