BLS Pharmaceuticals (ASX: BLS) has reported a record FY26, with revenue climbing 161% to $74.2 million and Adjusted EBITDA rising 171% to $19 million.
Statutory net profit after tax reached $15.4 million, more than three times the $4.9 million recorded in FY25. Adjusted EBITDA represented a 26% margin, compared with 25% a year earlier.
The result came as BLS increased manufacturing volumes in Australia, expanded relationships with international pharmaceutical companies and began establishing commercial operations across several overseas markets.
The company, formerly Bioxyne, formally adopted the BLS Pharmaceuticals name during FY26 as it repositioned itself around pharmaceutical manufacturing, supply and distribution.
Germany becomes a major international opportunity
The most significant international development was BLS’s expanded agreement with German pharmaceutical distributor ADREXpharma.
Signed in May 2026, the two-year agreement is valued at approximately A$50 million and includes a minimum purchase commitment of A$25 million in the first 12 months. ADREXpharma has exclusive rights to distribute BLS’s Dr Watson medicinal cannabis products in Germany.
Germany is already BLS’s largest international commercial opportunity, giving the company a sizeable contracted pathway into one of Europe’s biggest medicinal cannabis markets.
BLS also began manufacturing for Aurora Cannabis during the year. The initial work covered medicinal cannabis oils for Australia, with the relationship expanding to vape products for Australia, the UK and Germany. Initial sales included more than 5,000 sublingual oils and more than 20,000 vape products.
In Latin America, BLS entered Costa Rica through an agreement with Remidose LATAM covering three Dr Watson flower products. The first commercial sale was worth more than $500,000.
The company also continued developing its Scottish GMP manufacturing facility, with commissioning scheduled for September 2026. BLS has invested approximately A$2.1 million in the facility to date, supported by loans and grants from South of Scotland Enterprise. Commercial manufacturing will remain subject to the required licences.
Psychedelics remain a smaller but strategically important part of the business
While medicinal cannabis remains BLS’s principal commercial product category, the annual report makes clear that the company intends to use its existing manufacturing licences and pharmaceutical infrastructure to move further into psychedelic medicines.
BLS’s Australian facility is licensed to manufacture MDMA and psilocybin products, and the company continued commercialising its GMP-manufactured BLSPSIL25 psilocybin capsules during FY26.
Initial sales consisted of 250 doses supplied to authorised prescribers, enough to support approximately 60 patients over the following 12 months. The company describes the programme as an emerging revenue stream.
That distinction is important. The FY26 financial result is primarily a story about the scaling of BLS’s broader pharmaceutical manufacturing and medicinal cannabis operations, while psychedelics represent a potential area of future growth.
BLS says it is also developing proprietary medicines containing MDMA and psilocybin, with potential applications including PTSD and treatment-resistant depression. It has identified additional opportunities across psychedelic medicines, including 5-MeO-DMT and psilocybin product development.
The company has also positioned itself as a downstream manufacturing partner for companies that may have pharmaceutical ingredients or drug candidates but lack the licences and infrastructure needed to turn them into finished products.
FY27 puts the platform to the test
BLS enters FY27 targeting revenue of $105 million to $115 million, which would represent growth of approximately 42% to 55% on FY26.
The company is also targeting an Adjusted EBITDA margin of 23% to 26%.
There is considerable manufacturing capacity behind those targets. BLS estimates its Australian operations have annual revenue capacity exceeding $250 million, while the Scottish facility could add another approximately $150 million once operational.
The question now is how quickly that capacity can be converted into recurring revenue.
BLS finished FY26 with $13.3 million in cash, compared with $7.7 million a year earlier. Operating cash flow was $5.4 million, down from $6.3 million, while inventory increased substantially to $17.8 million from $3.6 million as the company prepared for higher customer demand and larger supply commitments.
That working capital requirement will be worth watching as the business expands.
From cannabis manufacturer to pharmaceutical platform
The more significant change at BLS is arguably not the headline revenue number but the type of business the company is becoming.
Its Australian operation now combines GMP manufacturing with controlled-drug handling, pharmaceutical imports and exports, wholesale distribution, product development and market-access capabilities.
The company says its strategy is to become a preferred downstream manufacturing and distribution partner for pharmaceutical suppliers and regulated medicine producers that need access to established markets.
That model could become particularly relevant to psychedelic medicine as more companies move drug candidates through clinical development and towards regulated supply.
BLS already holds Australian licences covering the manufacture of MDMA and psilocybin and has begun supplying finished-dose psilocybin products into the country’s authorised prescribing system. It is also evaluating international opportunities for psychedelic medicines.
For now, however, the numbers are being driven by the company’s broader pharmaceutical and medicinal cannabis operations.
FY26 showed that BLS can scale those operations profitably. FY27 will provide a much clearer test of whether its growing international contracts, expanded manufacturing capacity and emerging psychedelic business can develop into a larger and more diversified pharmaceutical platform.
