Two Healthcare Companies Provide Market Updates: MXC And OCC

Two Healthcare Companies Provide Market Updates: MXC And OCC

MGC Pharmaceuticals Limited (ASX: MXC) is a European company, offering its products and services to the medical cannabis industry. The key business strategy adopted by the management is to develop and supply high-quality Cannabinoids-based pharma products to serve the rising demand in Europe, Australasia and North America.

The company recently updated that it has completed the initial critical development phase of the ILC (International Library of Cannabinoids) digital platform.

  • It was being developed in collaboration with RMIT (Royal Melbourne Institute of Technology), a leading Australian research university
  • The ILC digital platform will come up with an interface connecting doctors and patients with clinical research and information on cannabinoid sequences and their potential treatments
  • The ILC digital platform will be responsible to compile MXC’s exclusive data along with data from different clinical studies, academic publications and patient feedback, and data on diverse cannabinoid strains
  • This compiled data with analysis from the ILC will help and increase the work of doctors and

researchers, and will also improve efficacy estimations of cannabinoids in the treatment of several diseases.

  • The ILC platform provides an improved understanding for doctors of cannabinoid treatments, which in turn, will translate to an increase in prescriptions and application of cannabinoid-based products, including MXC’s products
  • The ILC favourably mentioned in an academic paper titled Automated Gathering and Analysis of Cannabinoids Treatment Data published in the Journal of Procedia Computer Science (‘the Paper’)
  • The Paper also mentioned about the utilisation of ILC for designing and implementing clinical trials through its mobile and web-based applications.

The agreement between MXC and ILC comprises two key initial projects:

(a) Create or develop the world’s first library of cannabis medicine, which will contain details on medicinal cannabis clinical research, cannabinoid sequences and their treatments.

 (b) Analyse the positive impact of formulations from medicinal cannabis on various kinds of cancer and its side effect. Such kind of cancer research program will primarily emphasise on melanoma treatment, which will begin with pre-clinical trials.

The ILC (International Library of Cannabinoids) platform, including Strain, Research and Clinical data, provides a structured database, web interface, search tools for doctors and researchers, an app for patients to enter regular data, integration of global knowledge and global data.

The management of MXC considers this completion as a noteworthy milestone in the products development and commented that the ILC platform has the potential to be the Google of medicinal cannabis.

Associate Professor in Biotechnology at RMIT confirmed that it is producing the ILC database that can compile complete information about strains and clinical trials. The compiled database will benefit doctors and industry to opt the accurate strain for treatment of a specific disorder.

The potential of ILC was stated in a paper titled Automated Gathering and Analysis of Cannabinoids Treatment Data, which was issued in the Journal of Procedia Computer Science, mentioning the strategic benefits of the ILC platform.

The company recently announced an update on its operations and confirmation of material revenue generation for the June quarter from its non-pharmaceutical business units.

At the current market price of $0.051, a market capitalisation for the stock stands at $63.07 million. Looking at the price performance, the stock has substantially gained ~40.54% in last three months and 26.83% on YTD basis.

Orthocell Limited (ASX: OCC) develops and commercialises cell therapies and related technologies. Regenerative medicine is a new field of medicine, which seeks to repair injured or diseased tissue using the body’s own regenerative capabilities. OCC is a world leading regenerative medicine company with an advanced portfolio of products.

The company recently informed that SRV Custodians Pty Ltd and SRV Nominees Pty, combined, have decreased the voting power in the company from 6.73% to 5.49%. Matthew Callahan also has reduced its voting power in the company from 6.81% to 5.63%. Paul Anderson and Nicole Telford have been ceased to be a substantial holder of the company.

The company, as on 6th June 2019, updated that it has issued 26,500,000 shares at the price of $0.40 per share in the placement (Placement), which was announced on 30th May 2019. OCC has issued 12,517,281 shares (as per the regulation), which represents 8.18% of the post Placement capital in the company. Consequently, the overall interests of the pre-placement shareholders will be diluted by 8.18%. The Placement was not underwritten; hence, OCC will pay a 5% placement fee on the raised funds. The company also incurred miscellaneous expenses, including legal and listing fees related to this placement.

The below-given table provides details of participation by existing shareholders and new investors.

Deployment of the Raised Funds: The funds will be used to fast-track the CelGro® commercialisation for tendon, nerve repair and dental bone into important markets. Additionally, the raised funds will also be used to progress key regulatory approvals in the US and other target jurisdictions. Further, it will also assist the continued business development and marketing initiatives.

The company recently informed about the successful completion of participation in the CelGro® by the first four patients.

March 2019 Quarterly Update: The company’s net operating outflows for the quarter stood at $113k. At the end of the quarter, the cash balance came in at $3.2 million, allowing OCC to continue the investment.

The company mainly focuses on executing its marketing and sales strategy for CelGro® in dental bone and soft tissue repair. This includes the engagement of country-specific distributors in the EU. It also undertakes the targeted education, promotion and advertising programs led by its key opinion leaders, designed to optimise the shareholder value. The company’s intention is to leverage the CE Mark to obtain the regulatory approvals from Australia and the US and accelerate the introduction of the tendon and nerve indications and commercialise the Ortho-ATI® and pipeline products.

At the current market price of $0.405, a market capitalisation for the stock stands at $58.13 million. The stock has significantly moved in last one month with a gain of 230.43%. In today’s trading session, the stock reached a high of $0.420 and closed at $0.372 as on 07th June 2019.


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