CBD firm CV Sciences posts sales gain, still struggles with net losses
CV Sciences, until recently known as CannaVest, has expanded its retail footprint for its to 340 locations nationwide, said CEO Michael Mona Jr. CV Sciences has been moving forward with development of its PlusCBD Oil brand, based on cannabidiol, the non-narcotic fraction of the cannabis plant. The Food and Drug Administration has said that CBD is not a legal dietary ingredient for dietary supplements, but that has not prevented companies from moving forward with development of functional foods and other consumer products featuring the molecule.
Food status provides regulatory breathing space
One of the regulatory workarounds that CV Sciences and others in the sector use is hemp’s status as a food. Industrial hemp, usually defined that plants that have less than 0.3% THC content, the narcotic component of the plant, is being grown in test plots in Kentucky with the majority of its hemp supply coming from Europe.
In its year end earnings statement, CV Sciences recorded a year-over-year sales gain, posting $11.5 million in sales in 2015 versus $10.1 million in 2014. But losses mounted, too, as at the end of 2015 the company acquired Florida firm CanX, which it said will aid it its efforts to bring a CBD-based pharmaceutical to market. The company recorded a net loss of $12.2 million in 2015.
“Our new pharmaceutical development program builds on our reputation, experience and expertise in CBD to leverage the attributes of CBD to the prescription drug market. Our consumer products business segment continued to expand during 2015. Distribution of our branded products increased to 340 retail locations as of December 31, 2015. Our leadership in educating the market about CBD as a dietary supplement, beauty care product, and, as an ingredient for numerous other products from pet foods, vape products and specialty beverages, continues to grow,” Mona said.
