- EU biopharma player MGC Pharmaceuticals announced favourable safety and tolerability results for COVID-19 treatment candidate, ArtemiC in a preclinical study.
- The Company signed a binding term sheet with Cannvalate Pty Ltd to acquire 100% operating clinic-based assets, data as well as intellectual property of Medicinal Cannabis Clinic Pty Ltd.
- MGC Pharmaceuticals received a grant for a cannabis research cultivation permit from the Australian Office of Drug Control (ODC).
- The Company is selected under WHO established COVID-19 taskforce, expanded clinical trial site for Phase 2 COVID-19 clinical trials into India.
The Australian medical cannabis industry has garnered significant attention amidst the COVID-19 turmoil. Within the industry, An EU-based cannabis company, MGC Pharmaceuticals Ltd has gained traction this month on the back of some significant announcements.
In this article, we will highlight the ASX-listed cannabis stock’s announcements in July 2020.
About MGC Pharmaceuticals
European biopharma company MGC Pharmaceuticals Ltd (ASX:MXC) is developing and supplying affordable standardised phytocannabinoid derived medicines to patients globally. The Company has a robust product offering targeting two widespread medical conditions dementia and epilepsy and has further products are under development pipeline.
MXC has several research collaborations with renowned academic institutions, including recent research highlighting the positive effect of using specific phytocannabinoid formulations for treating glioblastoma, a therapeutically resistant primary brain tumour.
Let us now shed some light on developments of MGC Pharmaceuticals’ in July 2020.
MGC Pharmaceuticals announces promising preclinical data for ArtemiC
The Company announced promising safety and tolerability data for ArtemiC in a preclinical study conducted in Israel. The 27 July update stated that there were no adverse results in the standard toxicity measures.
The study comprised of three study groups including a total of nine mice (three in each group). Doses of 25ul and 50ul were given in two groups, while the third was a control group.
The favourable results bode well for the ArtemiC treatment regimen currently evaluated in the Phase 2 clinical study in COVID-19 patients. A natural supplement formula, ArtemiC is based on Artemisinin and Curcumin. The Company anticipates additional histology test results in the next few days.
MXC to acquire 100% stake in Medicinal Cannabis Clinic
On 20 July 2020, MGC Pharma disclosed that the Company had signed a binding term sheet with Cannvalate Pty Ltd to acquire complete (100%) operating clinic-based assets, data as well as intellectual property of its wholly-owned subsidiary Medicinal Cannabis Clinic Pty Ltd. A new company will be incorporated to hold all the Assets of Medicinal Cannabis Clinic, which will be wholly owned by MGC Pharma.
Under the terms of the agreement, the NewCo will get the relevant state as well as federal licences to permit the import & distribution of medicinal cannabis products, moving Australian supply chain of MGC Pharma to the NewCo, permitting MGC to continue offering affordable cannabinoid medications.
In conjunction with the acquisition, MGC Pharma secured the services of Medicinal Cannabis Clinic staff to continue operations of New Co, confirming clinical independence and excellent clinical governance. Moreover, MGC does not anticipate any changes to current operations, product offering, or fundamental business ethos of MCC.
The acquisition of 100% of assets of MCC will expand the direct distribution network of MGC Pharma and enable a direct supply chain of its proprietary medicinal cannabis formulations to consumers.
Cannabis Research Cultivation Permit Granted for RMIT Programs
On 14 July 2020, MGC Pharmaceuticals disclosed that the Australian Office of Drug Control (ODC) had granted a Cannabis Research Cultivation Permit to MGC which follows the receipt of the Cannabis Research Licence in 2019.
With this cultivation permit, MXC would be able to proceed with its botanical research projects collaboratively with RMIT University (Royal Melbourne Institute of Technology) including cultivation and genetics. The botanical research will leverage MGC Pharma’s existing genetic IP and focus on the identification of new cannabinoids and treatments for several medical conditions
The permit will allow RMIT University and MGC Pharma to commence breeding experiment for cultivation and optimise the efficacy of strains against tumour cells.
Notably, MXC is now capable of registering its genetics as well as research findings within Australia.
Granted Import Licence by Australian Office of Drug Control
According to another ASX announcement dated 8 July 2020, MGC Pharmaceuticals revealed the grant of an import licence from the ODC following the granting of an Indent Wholesale Licence by on 26 May 2020 by the Western Australian Department of Health. With this licence, MGC Pharma shall be able to import any MGC Pharma Schedule 4 (prescription only medication) and Schedule 8 (controlled drugs) medicinal cannabis products across Australia.
Moreover, the licence allows MGC Pharma to import a broader range of products from its Mercury Pharma brand.
MGC Pharma will now import its medicinal cannabis products in bulk for storage, distribution, and sale across Australia through its commercial channel partners. In due course, MXC will expand importation to encompass a wider range of products including products from its Mercury Pharma brand like MP25T (25mg/mL THC) and MP1:1 (25mg/mL THC:CBD).
Moreover, MXC continues to work with Cannvalate and some other commercial partners for the distribution of its proprietary products in the Australian market at affordable pricing points.
The next step of MGC Pharma is to increase its sales team along with clinic access, growing from the retail profit margins, together with its distribution channels.
Mr Roby Zomer, Co-founder and Managing Director of MGC Pharma, commented
Selected under WHO established COVID-19 taskforce, Clinical Trial Site expansion into India
In early July, MGC Pharma updated that market that the Company had geographically extended the recruitment of patients for its Phase 2 clinical trial of the natural anti-inflammatory formulation ‘ArtemiC’ on patients diagnosed with COVID-19 to India. This is a double-blind, placebo-controlled clinical trial to evaluate the safety and efficacy of ‘ArtemiC’ on COVID-19 patients in India.
The World Health Organization (WHO) had selected MGC Pharmaceuticals to participate with its ArtemiC clinical trial to get the recent updates and specific trial information to incorporate them into their systematic living review.
The Company has now expanded the clinical trial footprint to include the Mahatma Gandhi Mission’s Medical College & Hospital in India, where a complete ethical review has been undertaken, and MXC has received ethics approval.
The clinical study intends to enable decision-makers for accessing the best current evidence on comparative impacts of the interventions studied in the COVID-19 clinical trials.
Moreover, the recruitment of patients for the Phase 2 clinical study in India was anticipated to commence in mid-July 2020 for the clinical trial to complete in November or December 2020. The clinical trial will evaluate the safety as well as the efficacy of the natural anti-inflammatory formulation ArtemiC.
Stock Information: On 27 July 2020, MXC stock was trading at A$0.025 (at 02:23 PM AEST), up 4.167% compared to its previous close. The stock has nearly 1.58 billion shares trading on ASX.