UNIVO is a vertically integrated Israeli medical cannabis company. It claims that full control of the value chain, from cultivation to distribution, allows for the maintenance of high-quality product and service. This is evidenced by UNIVO’s expanding share of the growing Israeli medical cannabis market. In addition, it has internationally certified facilities (IMC-GMP) and is poised to commence exports from Israel. Key to UNIVO’s continued progress will be the development of innovative medical cannabis-based products at its 1,600 sq ft research facility and the cooperation agreement with Rambam Hospital. UNIVO has four patents for medical indications granted in Israel.
UNIVO Pharmaceuticals |
Controlling the value chain
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Healthcare |
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19 October 2021 |
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UNIVO is a vertically integrated Israeli medical cannabis company. It claims that full control of the value chain, from cultivation to distribution, allows for the maintenance of high-quality product and service. This is evidenced by UNIVO’s expanding share of the growing Israeli medical cannabis market. In addition, it has internationally certified facilities (IMC-GMP) and is poised to commence exports from Israel. Key to UNIVO’s continued progress will be the development of innovative medical cannabis-based products at its 1,600 sq ft research facility and the cooperation agreement with Rambam Hospital. UNIVO has four patents for medical indications granted in Israel.
Growing market share in a growth market
Israel was one of the first countries in the world to regulate the provision of medical cannabis in 2013. Patient numbers reached 80,000 in 2020 (Israeli Ministry of Health) and UNIVO expects further growth of 40% in 2021, implying a market value of €280m (UNIVO estimates). UNIVO estimates that its market share in Israel was close to 10% in Q221, up from 7.5% in 2020. It has contracts in place with the leading pharmacy chains in Israel to supply more than 10kg of product in 2021.
Eyeing European markets
The UN's decision in 2020 to remove cannabis from Schedule IV of the 1961 Single Convention on Narcotic Drugs was ratified by all European nations (except Hungary), paving the way for a growing European medical cannabis market. Also in 2020, Israel allowed the export of medical cannabis to licensed companies, of which UNIVO is one of a handful. Exports to the UK as well as any other country accepting the IMC-GMP certification are permitted. With combined 2020 sales of €280m (source Brightfield Group), the medical cannabis markets in Germany and Italy have been highlighted by UNIVO as particularly attractive as well as Australia and Denmark among others.
Milestones ahead
UNIVO’s key milestones over the next year are to exceed its 12% market share in Israel, receipt of EU-GMP certification, to commence exports, solidify medical benefit claims, establish global collaborations, produce strains for specific indications and double capacity to 15 tonnes per year.
Financials: Significant improvement
H121 results reflect UNIVO’s operational progress. Revenues rose by 91% y-o-y, gross margin reached 39% and an initial net profit of ILS2.1m was recorded. Cash at end H121 was ILS8.7m.
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Historical financials
Source: Company accounts |
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Research: Industrials
In a pre-close statement, Norcros flagged a positive H122 trading period. Outperformance of strong renovation markets in both the UK and South Africa is being attributed to relative supply chain, channel breadth and balance sheet strengths that are supporting share gains. Revised management expectations are ‘significantly’ higher and we have increased our previous PBT forecasts by 10–11%.