Aphria stock is gaining momentum today after Aphria Inc (TSX:APHA) (NYSE:APHA) achieved GMP status in the European Union. Now the company will be able to start selling medical cannabis to pharmacies in Germany and other countries.
Over the course of the past few years, many of the biggest cannabis companies in the industry have set up international operations in order to tap the global market. One of the companies to have set up extensive operations abroad is Aphria Inc, and today the company made a significant announcement with regards to one of its European subsidiaries.
EU GMP Certification for Subsidiary ARA-Avanti Rx Analytics
Aphria announced today that its subsidiary ARA-Avanti Rx Analytics has managed to get its European Union Good Manufacturing Practices certification from the Malta Medicines Authority. The certification is related to medical products, including investigational variations.
The company also stated that it chose to get the GMP certification for the EU from the Malta Medicines Authority because it has the reputation of being the toughest one to obtain. It is known for being highly demanding and strict.
Aphria stock is up about 5% in the morning session on Tuesday.
The certification is a big boost for ARA-Avanti Rx Analytics and its business. It will now be able to ship dried cannabis flowers as well as cannabis oil in bulk in certain jurisdictions that come under the purview of the European Union.
This comes as a major boost for Aphria after the company’s financial results for the fiscal second quarter proved to be a disappointment. Aphria released its financial results on January 14, and revenue for the period failed to meet expectations.
Aphria also made a loss of C$7.9 million or C$0.03 a share. This is in sharp contrast to the prior-year period when the company had actually made a profit of C$54.8 million or C$0.22 per share.
The revenue grew significantly from the prior-year period to C$120.6 million, but it missed analysts' estimates for the quarter of C$129.8 million. The results proved to be a disappointment for its investors, and Aphria stock tanked on the back of the results.
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