Abacus Health Products

CN: ABCS

C$60.7m market cap

C$5.05 last close

Abacus Health Products is a consumer healthcare company that is combining CBD with active pharmaceutical ingredients to provide relief from those suffering from pain, itch and acne, among other indications.

Investment summary

Abacus Health Products is a consumer healthcare company that sells topical hemp-derived cannabidiol (CBD) in combination with active pharmaceutical ingredients that have known efficacy to treat indications such as pain, acne and itch. Abacus has two main brands, CBD CLINIC, marketed to healthcare practitioners, and CBDMEDIC, marketed to consumers. CBD CLINIC continues to grow strongly, up 42.7% in Q319, and is increasing its penetration as it is now sold in over 14,500 health-related practitioner offices, up from 12,000 in the previous quarter. CBDMEDIC sales were up 71.9% compared to the prior quarter and its retail presence is set to grow. In January 2020, CBDMEDIC will be in around 7,000 retail locations in 31 states. Additionally, Abacus plans to launch its ingestible CBD health and wellness line in Q220.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2017A 2.6 0.6 0.5 N/A N/A N/A
2018A 8.5 1.0 0.6 4.32 89.3 60.5
2019E 16.1 (16.8) (17.1) (86.53) N/A N/A
2020E 39.7 (6.5) (6.8) (29.91) N/A N/A
Industry outlook

CBD sales were around $600m in 2018 with brisk growth to come as products enter mainstream stores and the FDA clarifies the regulatory landscape.

Last updated on 16/01/2020
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (US$m) 23.4
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (11.4) (12.9) N/A
Relative* (13.6) (18.2) N/A
52-week high/low C$17.8/C$4.2
*% relative to local index
Key management
Perry Antelman CEO
Henry (Hank) Hague, III FD