An EU-based BioPharma company, MGC Pharmaceuticals Ltd (ASX: MXC) is an expert in the medical cannabis industry. The company’s strategy is to deliver high-quality cannabinoids-based pharmaceuticals products in the European, North American and Australasian medical markets.
MGC Pharmaceuticals announced on 6 May 2019 that it has entered into an exclusive distribution agreement with Grow Biotech and IPS (‘the Parties’) – leaders in UK medical cannabis market. The two parties have an extensive distribution network of above 5,500 pharmacies. As per the agreement, MXC can now have direct access to their distribution channels in the growing UK medical cannabis market.
As per the agreement, Grow Biotech and IPS would render medical import and distribution services to MXC. This would allow the patients residing in the UK to have access to MGC’s propriety products like CannEpilTM for people suffering from epilepsy and CogniCannTM for people suffering from Dementia and Alzheimer.
On 12th April 2019, the MGC Pharmaceuticals obtained a permit to import epilepsy drug into the UK. The company also got its first formal purchase orders from Australia and the UK for CannEpilTM.
Post-UK regulation changes on 1st November 2018, Grow Biotech and IPS provided medicines to the patients directly on 15th February 2019, due to which the specialist doctors got permission to prescribe medical cannabis to their patients. Grow Biotech and IPS were the first companies that imported a bulk shipment of medical cannabis to the UK market. They have an on-site pharmacy to deliver prescriptions directly to a patient’s door.
As indicated in the agreement, Grow Biotech and IPS would ensure that MGC Pharma’s proprietary products would be registered, imported and delivered directly to the end patient. In an effort to support the products’ reception in the UK market, Grow Biotech would offer educational support and would provide product information to UK prescribing doctors.
The initial prescriptions for CannEpilTM have already been received by the Parties. MGC Pharma would help the board Centre for Medical Cannabis, a UK industry membership body in the formation of a supportive regulatory framework. This would enable patients to have smooth access to cannabis-based medications.
According to Roby Zomer, Co-founder and Managing Director of MGC Pharma, this partnership has placed the company as a proven expert in importing medical cannabis products into the UK market.
The terms of the agreement are highlighted below:
Grow Biotech and IPS – exclusive importer and distributor of MGC Pharma’s proprietary Investigational Medicinal Products (‘IMPs’) in the UK.
Grow Biotech and IPS would offer scientific education services and clinic support during the duration of the agreement.
The term of the agreement spans across 5 years of timeframe.
Existence of termination rights in certain cases.
The company is entitled to pay success fees upon specified sales-based milestones.
No specified minimum contract amounts or volumes in the agreement.
The UK medical cannabis market is anticipated to reach €8.8B by 2028, which provides a significant opportunity for MGC Pharma in the UK market. Also, over 500,000 people in the UK are currently diagnosed with epilepsy that can benefit from the CannEpilTM product.
Recently, MGC Pharma had also signed two strategic supply agreements with two medicinal cannabis distribution and logistics companies – Cannvalate and Health House International. Following the contract, MXC’s phytocannabinoid-based products would be accessible under the Special Access Scheme.
A few days ago, the company also partnered with Chinese e-commerce import platform, YuShop Global. The partnership enabled MXC to market and distribute its nutraceuticals CBD based products in the Chinese health products market.
The company also announced its 2019 commercialisation strategy on 2nd April 2019. The strategy was centred around the company’s two core divisions, Seed-to-Pharmacy Manufacturing and Research & Development.
The company’s stock is currently trading at AUD 0.051 (as on 6th May 2019, 3:15 PM AEST), up by 2 percent.
