Abacus gold license cost8/14/2023 ![]() ![]() For 2020, we have lowered our estimates for the ingestible CBD line as it appears the initial launch will be more limited than we had expected however, we have left longer-term forecasts the same as we have not changed our view on the market potential. In the longer term we have increased our expectations for CBD CLINIC sales. Our 2019 forecast was increased due to a higher than expected sales run rate in the quarter. We have increased our sales estimates for 2019 to US$16.1m from US$15.9m and for 2020 to US$39.7m from US$39.3m. Guidance is expected in the coming months though the exact timing is unknown. A full launch will depend upon FDA clarification on its view of CBD in food and supplements, which may include dose limitations as many retailers will likely want to wait until the guidance is released prior to putting CBD containing supplements on shelves. With regards to the ingestible line, the company plans a limited launch in Q220 with an initial focus of online sales with limited retail location penetration. The nationwide footprint of these chains totals 34,500 stores, so the number of locations that offer CBDMEDIC should continue to climb as it is more fully deployed, though the pace of this deployment will vary by chain and state. In January 2020, CBDMEDIC will be in around 7,000 retail locations in 31 states up from 3,000 locations in 24 states at the end of Q219. With the signing of another national retail chain with around 10,000 locations, CBDMEDIC can now be found in the top three pharmacy chains (which based on store counts are CVS, Walgreen’s and Rite-Aid according to IQVIA). Additionally, the newly designed product design (set to launch in 2020) may help increase the attractiveness of the product to customers. In total, we calculate over 500,000 licensed chiropractors, acupuncturists, massage therapists and physical therapists practising in the United States so there is plenty of room for the brand to grow in these target markets past the current 14,500. According to the Bureau of Labor Statistics, there are over 50,000 chiropractors in the United States. Also, the recent distribution agreement with WBC Group should help penetration within the chiropractic community as its wholly owned subsidiary, MeyerDC, is the official distributor of the American Chiropractic Association. CBD CLINIC is increasing its penetration and is now sold in over 14,500 health-related practitioner offices, up from 12,000 the previous quarter. Abacus reported a very strong third quarter as sales increased by 97.4% compared to Q318 to US$4.1m thanks to expanding footprints for both CBD CLINIC and CBDMEDIC. ![]()
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