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Summary
- The increasing support from the government regarding the export of medical cannabis has helped the cannabis industry grow despite the challenging scenario.
- Althea witnessed FY20 revenue at A$5.06 million, climbed by 559.9%; UK MyAccess clinics of Althea booked out for weeks in advance.
- Althea passes 8k patients as online sales contribute to a record month in July 2020.
- MGC Pharmaceuticals signed a binding term sheet to Establish JV for registration of ArtemiC as medicine in Russia.
- MGC Pharma disclosed that the interim results of its Phase 2 clinical trial for ArtemiC in COVID-19 patients meet all primary endpoints.
The Australian cannabis industry is growing continuously dodging the impact of COVID-19 pandemic. The cannabis industry in Australia will be able to export in the lucrative US market, Southeast Asia, China, and Canada markets, as the Australian government is committed to supporting agricultural producers and exporters across the country to create and maintain new international export opportunities.
Cannabis shares remained in focus amid COVID-19 after the Australian government designated essential service designation to the medicinal cannabis products. Many investors have been watching cannabis stocks during the current uncertainty posed by the ongoing market turmoil.
GOOD READ: 5 Pot Stocks and a Changed Perception
With this backdrop, we will discuss two ASX-listed cannabis shares- Althea and MGC Pharmaceuticals.
Althea Witnessed Record Revenue During FY20, UK MyAccess Clinics booked in advance
A medicinal cannabis producer and distributor, Althea Group Holdings Ltd (ASX:AGH) offers various education, access & management services to assist eligible patients and healthcare professionals (HCP) in medicinal cannabis treatment pathways.
Currently, Althea operates within highly regulated medicinal cannabis markets like Australia, the UK and Germany. The Company has plans to expand into emerging markets throughout Asia and Europe.
Althea’s Revenue Climbed ~559.9% in FY20
On 27 August 2020, Althea updated the market with its annual report for the financial year 2020 (ended 30 June 2020), the highlights are-
- In FY2020, Althea’s revenue from the ordinary activities stood at A$5.06 million, up by 559.9%.
- In Australia, the record growth was achieved despite disruptions caused by COVID-19 restrictions, which had an impact on sales in April and May. This was possible by the transition from face-to-face meetings to online platform Althea Concierge™.
- In the United Kingdom, during FY20, Althea continued to make considerable progress in replicating the highly successful strategy as employed in the Australian market to streamline access of the patient to medicinal cannabis.
- Unaudited revenue from operations across the UK was reported at A$50k in June 2020, up from A$20k in May 2020.
- Althea continued its expansion into Europe during FY20, signing a memorandum of understanding (MOU) and a subsequent supply and distribution agreement with Nimbus Health GmbH (Nimbus), for three years for distributing & importing its medicinal cannabis products in Germany.
- For its operations in Canada Althea has been informed that its licence application is under active review by Health Canada.
Record Revenue Sales in July, UK MyAccess Clinics booked in advance
On 17 August 2020, Althea updated the market about its Australian and UK operations, as its online initiatives including telehealth and online sales, gather momentum.
The Company disclosed that it passes 8k patients as online sales contribute to a record month in July 2020. In July 2020, 740 patients were prescribed Althea products (up from 582 in June), with the Company recording unaudited revenue of approximately A$692,091, establishing a new benchmark.
Moreover, a total of 628 Australian Healthcare Professionals (HCP) had prescribed Althea products as of 31 July 2020.
Althea Concierge™ now provides all Althea products for the online sale. When used in combination with video telemedicine, Althea Concierge™ permits physicians to prescribe medicinal cannabis products of Althea via the platform. Moreover, patients can easily pay for their prescription online, with medication delivered directly to their home.
In the UK prescriptions increases, Althea’s MyAccess Clinics booked out in advance
The wholly-owned subsidiary of Althea, UK-based MyAccess Clinics, is undergoing higher than projected patient demand. MyAccess Clinics is booked out for weeks in advance. The Company is recruiting more support team and Expert prescribers to cater to the increased demand for its products.
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Stock Information: On 28 August 2020, AGH share price ended the day’s trade at A$0.375, down by 1.316%. The market capitalisation of Althea was recorded at A$88.66 million with nearly 233.31 million shares trading on the ASX.
MGC Pharma to Establish JV for registration of ArtemiC as medicine in Russia
A European biopharma MGC Pharmaceuticals Ltd (ASX:MXC) develop and supply affordable standardised phytocannabinoid derived medicines all over the world. The Company has a solid product portfolio that offers to target the most common medical conditions epilepsy and dementia, with further products are underway.
On 25 August 2020, MGC Pharma signed a binding term sheet with Dr Svetlana Kopachevskaja, who is a leading Russian doctor as well as a medical researcher to form a JV company for medical products in the Russian market.
This Joint venture (JV) company will initiate the registration process for ArtemiC the anti-inflammatory product, as a medicine into the Russian market.
ArtemiC is designed to target viral infections having inflammatory complications. ArtemiC is currently under Phase 2a clinical trial on SARS-CoV-2 infected patients.
MGC Pharma notified that registration of ArtemiC in Russia is anticipated to be fast-tracked after successful completion of the ongoing Phase 2a clinical trial almost nine months to registration as a medicine.
The JV company shall be owned 70% by MGC Pharmaceuticals and the remaining 30% by the prominent Russian doctors along with investment partners involved. The term sheet of this JV was signed after the release of the ArtemiC interim results of Phase 2a clinical trial on COVID-19 patients, successfully meeting all Primary Endpoints.
On 20 August 2020, MGC Pharma disclosed that the interim results of its Phase 2 clinical trial for anti-inflammatory treatment ArtemiC had met all its primary endpoints for the safety and efficacy of the treatment on the first 10 COVID-19 patients.
Notably, the interim findings from this clinical trial also met the FDA primary endpoint -sustained clinical recovery, the resolution of symptoms and prevented the need for intensive care or invasive mechanical ventilation. This is under the guidelines provided by the FDA on the inclusion criteria for the treatment of high-risk, COVID-19 infected patients.
Co-founder & Managing Director of MGC Pharma, Roby Zomer, stated-
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Stock Information: On 28 August 2020, MXC share price stood at A$0.026, down by 3.704% from its previous close. With a market capitalisation of approximately A$44.05 million, MGC has nearly 1.63 billion shares trading on ASX.
