MGC Pharmaceuticals Ltd (ASX: MXC) is an ASX listed healthcare company based in Europe. The company has vast experience in the biopharma industry. Its primary business strategy is to develop and supply high-quality cannabinoid-based pharmaceuticals products to cater to the increasing demand, across the medical markets like Europe, North America and Australasia.
On 2nd May 2019, the company announced that is has signed two strategic supply agreements with the companies Health House International and Cannvalate, both specialising in medicinal cannabis distribution and logistics.
Under the two agreements, MGC Pharma’s phytocannabinoid-based products will be available under the Special Access Scheme via an expanded network of clinics and pharmacies. Through this, MGC Pharma may derive the Special Access Scheme application for its products.
About Health House International
It is an Australia based medicinal cannabis company with the primary operation of wholesale and distribution of medicinal cannabis products in Australia and the UK region to hospital pharmacies and community. It also has an additional network of professionals who assist doctors with the administrative burden for receiving Special Access Scheme approvals and offer clinical advice.
The company has Australia’s largest network of cannabis prescribers and dispensaries, containing above 1,000 doctors and more than 600 pharmacies. It also coordinates one of Australia’s largest medicinal cannabis clinical research facilities.
Terms under the Agreements
According to the terms of the agreement the wholesale/logistics agreement with Cannvalate and distribution agreement with Health House International, the products that can be included are CannEpilTM, CogniCannTM, MXP100 and MXC1:1 Australia wide. However, the agreement is open for the inclusion of additional MGC Pharma formulations. There are no specified minimum contract amounts or volumes under these agreements.
The agreement will make sure that there is an immediate supply and availability of CannEpilTM and CogniCannTM in Australia this year to their existing customer networks. The agreement will also make sure that further MGC Pharma formulations, following the MGC Pharma has now obtained the approval from the Therapeutic Goods Administration to import these products.
As both the agreements are non-exclusive in these territories, MGC Pharma has the advantage to enter into other strategic distribution agreements in the future.
MGC Pharma increases formulations for distribution in Australia
After the recent TGA approval permitting import, the company would also make available the supply of two of its formulations for clinical trials or under the Special Access Scheme. The first being the MXP100 which is primarily used for neurological conditions and the second being MXC1:1 which provides relief from symptoms of spasticity and certain types of inflammatory pain. These two formulations have been developed following demand from medical professionals in Australia.
Key personnel’s statement
The Co-founder and Managing Director of MGC Pharma, Roby Zomer stated that these agreements facilitate the availability of their medicinal cannabis products in Australia. The permission by the TGA further facilitated the access to a variety of medicinal cannabis products to a greater number of patients than before.
The Founder and CEO of Health House, Paul Mavor commented that he was excited to be distributing MGC medicinal cannabis products since they represented cutting edge technology in the industry.
The Co-Founder and CEO of Cannvalate said he was excited to be working with MGC Pharma and their high-calibre pharmaceutical products.
On 17th April 2019, the company announced another agreement with Chinese e-commerce import platform YuShop Globa for the purpose of marketing and distributing its nutraceuticals CBD based products in the Chinese market. Recently, MXC also obtained permit to import CannEpilTM into the United Kingdom region.
The stock of the company is currently trading at A$0.047 (as on 3 May 2019, 12:31 PM AEST), down by 2.083%.
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