Exclusive Interview with CEO and CFO of CV Sciences Joe Dowling
CV Sciences, a consumer products and pharmaceutical cannabis company, reported $12.3 million in sales for the second quarter of 2018, a 203 percent year-over-year increase. CEO and CFO Joe Dowling spoke with New Cannabis Ventures about the business model that is driving this financial success.
Dowling, previously the CFO and President of drug formulation and delivery company MediVas, has experience spanning drug development, finance, accounting, banking, and operations. He joined CV Sciences four years ago, excited by the possibility of pioneering science on something that had spent decades under prohibition.
CV Sciences has two business divisions. The pharmaceutical division is focused on drug development for the treatment of smokeless tobacco use and addiction, while the consumer products division is dedicated to the development of cannabidiol-based nutritional and beauty products.
On the pharmaceutical side, the company acquired a drug asset a couple of years ago. Right now, that division of the company is in the preclinical trial stage for its combined cannabidiol and nicotine treatment for smokeless tobacco use and addiction. The company will likely complete toxicology studies in late 2018 or early next year, submit an Investigational New Drug (IND) application sometime in 2019, and possibly begin a Phase 1 clinical trial in 2019, according to Dowling.
On the consumer products side, the company has 50 SKUs under its Plus CBD branded product line. While much of the industry is focused on just e-commerce, CV Sciences taps into multiple channels, serving nearly 2,000 retail stores, 1,000 physicians’ offices and consumers directly through its e-commerce operation. Right now, the company’s product distribution channels include retail, wholesale, and direct-to-consumer, but the CV Sciences is exploring a number of new possibilities for different products and distribution channels.
The company’s strong second quarter financial results are no happy accident, according to Dowling. The quarter’s strong sales represent years of investment in product development, education, consumer awareness and creating a network of distribution channels across the country. He credits the greater consumer awareness of CBD as driving the acceleration in revenue and expects a strong market to develop over the next several years.
CV Sciences has submitted its application to uplist on the NASDAQ, a move that will make the company’s stock available to institutional investors. At the moment, the company is not raising capital as it has sufficient cash flow from operations to support its growth. But, the company will need access to capital at some point, likely to support its drug development efforts, and the move to the larger exchange will better position the company for access to capital markets, according to Dowling.
Looking ahead, Dowling is focused on scaling the company to take advantage of growing opportunities in the market. He is bullish on the bipartisan support for federal legalization of hemp, seeing the likely passage of the 2018 Farm Bill as an economic boon and a significant opportunity for the company from a health and wellness perspective.
To learn more, visit the CV Sciences website. Listen to the entire interview: