MGC’s Cannabis Ingredient Product Taking Grounds Over Its Pharma Products

  • Oct 24, 2018 AEDT
  • Team Kalkine
MGC’s Cannabis Ingredient Product Taking Grounds Over Its Pharma Products

A price tag of $140 million is assigned to medical cannabis biopharma company (ASX: MCX) by the Edison Investment Research company. The per share value of the company is 66% above the existing stock price which is approximately 11cents per share.

As per the Edison Investment Research company, the conclusion was based on the comparative study of the sales of flowers and resin and the cannabis-growing operations. Edison also highlights the benefits which covers about 60% of the valuation comes from the budding pharmaceuticals business. 

Within Latin America, the marijuana players have started the diversifying themselves into lifestyle products like Coke’s apparent plan for cannabis-infused wellness drinks and pharmaceuticals. In spite of the business being more lucrative as a result of formulations which are protected by patents and the cost of preparing alternate drugs, the finalization of drug getting approved is a bigger challenge due to higher regulatory hurdles.

The current pharmaceutical products which is being produced by MCG are CannEpil which is an orally-administered medical cannabis treatment for drug-resistant (or refractory) epilepsy, and CogniCann, for the treatment of dementia patients in order to improve quality of life.

A number of neurologists’ specialist who have authority to prescribe medicine in Australia have recently received a formal authorization for prescribing CannEpil as well under Authorized Prescriber Scheme. A retrospective study was made on 74 patients suffering from refractory epilepsy. Moreover, 51% of them were children who were diagnosed with this refractory epilepsy. It was reported that after the application of cannabis oil containing the same 20:1 CBD/THC ratio as CannEpil, there was reduction in seizures by 50%.

MGC forecasts that by 2050 it is expected that there will be around 152 million people who will be suffering from Dementia. CogniCann being the second pharmaceutical candidate of MGC will now be targeting these 50 million people who is suffering from Dementia and then those 152 million people with this disease by 2050.

A clinical trial of a synthetic cannabinoid drug in July 2018, it was found that THC can reduce agitation in Dementia sufferers and will also help in improving the quality of life, understanding and overall symptoms of neuropsychiatric. MGC is now planning to conduct phase 2 studies for both medications which will be the first step to get registered as pharmaceutical products in Europe and Australia. It has also entered into a necessary term sheet with an Canadian cannabis investment company, Cannaglobal to sell its MGC Derma cosmetics business for up to$C15m ($16m) which will make MGC to focus completely into its pharmaceutical business.

MGC operates in central and southern Europe and is now focused to supply finished medicines and cannabis-based active pharmaceutical ingredients (API) in Australia and Europe. MGC has received license grow its operation in the Czech Republic and Slovenia, a fully GMP certified resin extraction plant located in Slovenia. It has also take approval the Maltese government to build a medical cultivation and production facility for cannabis. As per the Edison researchers, in the year 2017, the company has already harvested approximately 400kg of medicinal cannabis biomass from its 1100m2  outdoor greenhouse space in Prague. In the current quarter the company is going to harvest its second crop. It also makes a forecast for the global marijuana market to reach $US55 billion by 2025 based on the survey in 2015 which showed the worth of market to be $US11.4 billion. It also recognizes MGC to be a bigger player who will occupy a larger area in the European market.


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