Stenocare collapses in Copenhagen, cuts medical cannabis sales estimates

(Il Sole 24 Ore Radiocor) - Stormy session for Stenocare on the Copenhagen Stock Exchange, after the cut in guidance for 2024. The medical cannabis supplier's stock lost more than 14%, but has risen around 26% since the start of the year. Stenocare reported an 'outlook update' for the year, based on current performance in the first and second quarters and forecasts for the third and fourth.

"The 2024 guidance of gross sales of DKK 12-18m is now forecast at DKK 6-8m, a growth of 7 per cent over 2023. This will also affect the objective of breaking even in the last quarter of 2024, which is unrealistic with these new revenue forecasts," Stenocare indicates. The company points out that it has achieved the planned targets, 'but the market conditions did not develop as expected in the first half of the year'. In particular, 'prices have fallen due to increased competition and a very dynamic pricing model in Denmark for the pharmaceutical sector', with an impact on product reimbursement. This resulted in slower than expected sales development.

Founded in 2017, Stenocare was the first company to receive authorisation from the Danish Medicines Agency to import, distribute as well as cultivate and produce cannabis for medical use, used on prescription. It is also operational in Sweden, Norway, Germany, Great Britain and Australia.