Shares of Avicanna Inc. (TSX:AVCN) (OTC:AVCNF) rallied more than 26% on the TSX exchange on Monday following the company's release of its full-year 2024 audited financial results. The cannabis-biotech firm reported its most successful year to date, delivering double-digit revenue growth, significantly improved margins and a slate of clinical advancements across its cannabinoid-based product pipeline.

Revenue Growth And Margin Expansion Mark Operational Turning Point

Avicanna reported annual revenue of CA$25.5 million ($18.38 million) for the year ended December 31, 2024, up 52% compared to 2023. Fourth-quarter revenue totaled CA$6.6 million. Gross profits climbed to CA$12.9 million, a 94% year-over-year increase, with consolidated gross margins improving from 40% in 2023 to 51% in 2024.

"We are proud to report our most successful year to date, marked by improved financial results and continued advancements in our commercial, R&D and clinical programs," said Aras Azadian, CEO of Avicanna. "In 2024, we strengthened our financial foundation, achieved self-sufficiency, and established a solid basis for further growth, international expansion and innovation."

The company also narrowed its adjusted EBITDA loss to CA$1.4 million in 2024, a 68% improvement compared to the CA$4.3 million loss reported in 2023. Additionally, Avicanna repaid the outstanding principal balance of CA$1.3 million on its non-convertible debentures issued in August 2023.

Clinical Milestones Drive Investor Confidence

Alongside its financial performance, Avicanna's clinical and product development updates appear to be boosting investor sentiment. In 2024, the company initiated a national Real World Evidence (RWE) study through its medical cannabis platform MyMedi.ca. The study aims to enroll 1,000 patients across Canada to examine the therapeutic impact of cannabis on conditions such as pain, sleep disturbances, anxiety, depression, and epilepsy.

The company also completed several research initiatives:

• Epidermolysis Bullosa (EB) Study: Conducted in partnership with The Hospital for Sick Children in Toronto, the study evaluated the safety and efficacy of Avicanna's proprietary 3% CBD topical cream. Among participants, 55% reported improvements in wound healing, while 45% experienced wound stability.
• Musculoskeletal Pain Study: An observational RWE study involving Avicanna's transdermal gel—containing 2% CBD and 1% CBG—found a 35.4% improvement in musculoskeletal health scores one month after treatment, including gains in daily functioning and symptom relief.
• Trunerox Approval in Colombia: Avicanna LATAM SAS received regulatory approval from Colombia's INVIMA agency to market Trunerox for the treatment of Lennox-Gastaut Syndrome and Dravet Syndrome, two rare forms of childhood epilepsy. This indication-specific drug registration enables commercial distribution in Colombia, though Health Canada has not yet approved the product.

Commercial Expansion And Pharma Partnerships

Domestically, Avicanna concluded 2024 with 42 proprietary SKUs and 136 commercial listings across Canada. The company sold roughly 200,000 units during the year, reflecting an 8% increase from 2023.

On the international front, Avicanna completed its first delivery of proprietary cannabinoid-based topical products to a multinational pharmaceutical company. The shipment included a 3% CBD localized cream and a 2% CBD + 0.5% CBG transdermal gel, both of which had previously undergone human irritation and efficacy studies.

IP Portfolio Strengthens With U.S. Patent Approvals

In 2024, Avicanna also secured two U.S. patents:

• Patent No. US 12,064,461 B2 covers its deep-penetrating topical cannabinoid composition aimed at musculoskeletal pain and inflammation.
• Patent No. US 11,998,632 B2 covers its self-emulsifying drug delivery system (SEDDS) for oral cannabinoid formulations targeting neuropathic pain.

These additions further expand Avicanna's intellectual property moat, positioning it as a notable player in the pharmaceutical cannabinoid sector.

Azadian concluded, "We remain committed to our mission of advancing cannabinoid-based medicine and are energized by the prospects that lie ahead as we continue to expand and strengthen our core business pillars."

Following the report, Avicanna's share price surged on the Toronto Stock Exchange, reflecting renewed investor confidence in its long-term growth potential and scientific roadmap.

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