Rua Bioscience Limited releases annual results
Results in line with expectations and achieves first international sales.
Revenue (from customers) FY23 $357,675 FY22$24,226
Revenue (incl. fair value gains) FY23 $6,532,612 FY22 $646,098
Profit/(Loss) before tax FY23 $(5,958,506) FY22 $(7,485,985)
• October 2022: Exported first cannabis genetics to Australia.
• February 2023: Signed five-year supply agreement with Motagon targeting Poland
• March 2023: Announced the closure of local GMP manufacturing facility to focus on
developing unique genetics and executing export-led strategy.
• April 2023: First Rua-branded medicinal cannabis product launched in Germany
with distribution partner Nimbus Health (part of Dr Reddy’s Laboratories).
• June 2023: First revenue from sale of products in Germany.
Māori founded, Te Tairāwhiti based Rua Bioscience Limited (NZX: RUA) is a pioneering
medicinal cannabis company. In FY22 the company concentrated on preparing for entry
into international markets, while in the year to 30 June 2023 Rua started to deliver on their
Rua signed supply and distribution agreements targeting growth markets in Australasia,
Poland and Czechia; expanded supply partnerships in Australia and Europe; and
successfully launched product into Germany, generating their first international sales.
As the only New Zealand-based medicinal cannabis company with an explicit focus on
delivering social impact, Rua also extended its commitment to its Impact Programme for
residents of Te Tairāwhiti.
The year has seen core changes to the management team and board, as the company
moves into the next stage of its expansion.
In August 2022, Chief Executive Officer Rob Mitchell retired and board member Anna Stove
was appointed Managing Director. Her remit was to guide the process of sharpening the
strategy, right sizing the business, and appointing a new Chief Executive Officer. Paul
Naske, who was recruited by the co-founders in 2019, was promoted to CEO in February
At the board level, Chair Trevor Burt and Director Brett Gamble retired in May and June
2023 respectively. Teresa Ciprian was appointed as a Director on 1 August 2022 bringing
an exceptional international background in commercialisation, innovation and business
development in the primary sector, and brings strong governance capability. Tony
Barclay joined the board in May 2023. He has decades of publicly listed company and
healthcare experience, and holds a number of directorships, all in MedTech. Anna Stove
was appointed Chair in May 2023, while co-founder Panapa Ehau continues as an
“Together with the board and the rest of the Rua team, we have been identifying where
true value lies in the medicinal cannabis industry,” said Ms Stove.
“Since our inception, Rua has had an export-led strategy. To accelerate growth and
deliver a positive return to shareholders, over FY23 we continued to hone this strategy and
prepare for our next phase of development – all while achieving some notable firsts.”
Rua’s loss before tax for the year to 30 June 2023 was $5.96m (FY22 $7.49m). The
company remains well capitalised, with cash, cash equivalents and investments on hand
at the end of the period of $4.56m (FY22 $9.94m).
These results are within the expectations of the board, as the company continued to
develop international revenue pipelines. This year the company recorded significant non cash impairments, largely attributable to the impairment of the GMP manufacturing
facility and Zalm supply contract.
In the second half of FY23, the company made the decision to close the GMP
manufacturing facility in Tairāwhiti and establish a capital light business model. This has
resulted in reduced overheads and expenditure.
Revenue was recorded as $6.53m (FY22 $0.65m) of which $5.85m was a non-cash fair
value gain as a result of a reduction in the payment liability to ex-Zalm shareholders.
Revenue from customers was $358k (FY22 $24k).
“Rua has a uniquely nimble approach to the medicinal cannabis market,” said CEO Paul
“By outsourcing cultivation and manufacturing, we are operating at pace at both ends of
the value chain. We are continuing R&D and genetic discovery in Ruatorea and
establishing distribution channels in export markets around the world.
“We’re working with our supply partners around the world to build out our portfolio and
create products using our internally developed varieties. Rua’s supply agreements
provide cost-effective access to GMP-quality medicines.
“This is enabling us to deliver scalable value, as we establish a sustainable global
company and take our brand to the world.”
In April 2023, Rua successfully launched its first GMP-quality medicine in Germany –
becoming one of the first medicinal cannabis companies in New Zealand to introduce a
branded product in the market. Germany is the largest and most developed medicinal
cannabis market in Europe and projected to be worth around NZ$700m by the end of this
“Our entry into the German market, alongside our distribution partner Nimbus Health, was
a critical commercial milestone and highlight of the year,” said Mr Naske. “The response
to the product exceeded our expectations.”
With an established path to market and revenue, Rua and Nimbus Health intend to
expand the product offering in Germany. In time, Rua will distribute the genetics from their
Ruatorea facility through this same channel.
Rua is now launching into the Australian market. This is the second largest medicinal
cannabis market in the world, estimated to be worth over $240m currently and growing
rapidly.2 During the second half of FY23 Rua established the pipeline for Rua-branded
product to be sold in Australia, with company licences and distribution channels in place.
During August 2023 the company took delivery of its first product and made it available
for sale, which begins to establish a strong sales presence and a clear pathway to further
revenue in FY24.
Poland and Czechia
“Rua has the bold ambition of becoming a market leader in Germany and the EU,” said Mr
Naske. “We have signed a five-year supply agreement with Motagon and aim to be early
movers in the emerging markets of Poland and Czechia.
Rua’s immediate focus will be on entering the Polish market with a detailed product
dossier submitted to Polish authorities in February 2023. Poland is one of the fastest growing markets in Europe and by the end of 2023, the Polish medicinal cannabis market
is expected to be worth over NZ$90m.3
With no domestic cultivation, it is a major importer
of dried flower.
Rua’s Compassionate Access Programme shares the benefits of medicinal cannabis with
those in the Te Tairāwhiti community who can most benefit. Managed by local prescribers,
the programme ensures up to 30 patients per month in Te Tairāwhiti, who meet specific
criteria, have access to fully subsidised medicinal cannabis products.
In addition to the Compassionate Access Programme, Rua has a Scholarship Programme
designed to celebrate the aspirations of local rangatahi and help drive meaningful long
term social and economic impact in the communities of Tairāwhiti. With the support of
Rua Bioscience and Trust Tairāwhiti, 11 students were awarded undergraduate
scholarships in FY23.
“At Rua, providing social and economic impacts with programmes like these is woven into
the fabric of everything we do,” said Mr Naske.
“We are committed to maximising the potential of the emerging medicinal cannabis
industry to enhance health, promote wellbeing, and underpin prosperity for the people of
Te Tairāwhiti. As we continue to expand into export markets and build a sustainable
business, this will in turn grow value for shareholders and is ultimately going to help us
support intergenerational opportunities like these.”
1. Proprietary Management information.
2. Penington Institute Australia, May 2023.
3. Proprietary Management information.
For more information, please visit www.ruabio.com or contact:
Chief Executive Officer
+64 (21) 445 154