Here’s why MGC Pharmaceuticals (ASX:MXC) is trading higher today

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Summary

  • MGC Pharmaceuticals has received an increased purchase order of ArtemiCTM Rescue from Swiss PharmaCan AG.
  • The total order value now holds above $425,000, which would be translated to an immediate wholesale revenue increase for the company.
  • MGC Pharmaceuticals’ share price is trading 2.5 per cent up at A$0.082 (as at 11:08 AM AEDT).

On 3 March 2021, MGC Pharmaceuticals Limited (ASX:MXC) announced that it has received a materially increased initial purchase order from Swiss PharmaCan AG of ArtemiCTM Rescue. This new order is an increase of 85 per cent over the initial purchase order which was received by the company last month. The total order value now holds above $425,000, which would be translated to an immediate wholesale revenue increase for the company.

Image Source: Copyright © 2021 Kalkine Media Pty Ltd.

This initial order would be running for a period of 3 years and is a part of a quarterly wholesale order quantity from SPC under the Master Agreement. Last month, the company announced that it has entered into an exclusive master supply and distribution agreement with leading European nutraceutical producer and distributor, Swiss PharmaCan AG.

Under the agreement, Swiss PharmaCan AG has agreed to sell and distribute the company’s food supplement ArtemiCTM Product line, incorporating SPC’s MyCell Enhanced™ delivery system technology.

ArtemiCTM is a supplement that contains four natural-based ingredients consisting of Vitamin C, Artemisinin, Boswellia serrata and Curcumi. It has been clinically tested by the company.

This supply chain agreement by the company has been entered into after the successful completion of Phase II double-blind, placebo-controlled clinical trial. The trial was conducted on 50 COVID-19 patients with the objective of evaluating the efficacy and safety of the anti-inflammatory product ArtemiCTM Rescue.

The Master Agreement includes a minimum wholesale order quantity of 40,000 units per quarter effective immediately, with the first wholesale purchase order from SPC, which has just been increased by 85 per cent. This revised initial purchase order equates to almost $425,000 (+ €275,000) of immediate wholesale revenue to MGC Pharma.

Read More: MGC Pharmaceuticals (ASX:MGC) expands brain cancer treatment research

Stock Performance

Image Source: Copyright © 2021 Kalkine Media Pty Ltd.

MGC Pharmaceuticals’ share price is trading 2.5 per cent up at A$0.082 (as at 11:08 AM AEDT). The stock has been on the run since the beginning of February 2021 and has delivered a YTD return of a massive 228 per cent.

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