ASX listed MGC Pharma have broken into the $11b American skin care market after achieving US Food and Drug Administration approval for their “MGC Derma” cosmetics line that is manufactured from medical cannabis.
The company recently secured the notoriously hard to get FDA approval giving them the right to market their products into all US states and they have already secured an order from a US cosmetics distributor worth 1.2m Euro.
C&M CBD Holding LLC Is a relatively new company, established in the US by cosmetic and Hollywood production industry leaders and it will distribute MGC Pharma’s line of anti-aging and cosmetics products.
They have placed an order with MGC Pharma for 60 000 units of its unique medical Cannabis based anti-aging products including Moisturizing Day Cream SPF 30, Active Firming Anti Aging Mask, Active Bright Facial Cream, Anti Puffiness and Dark Circles Eye Serum.
MGC Pharma’s range of products will be initially distributed in California, the largest US state economy, via eShop, local distributers and retail outlets across that state.
The FDA approval relates to the first 16 of MGC’s large suite of medical Cannabis based products and follows hot on the heels of approval from the European Commission’s Cosmetic Products Notification Portal, enabling the Company to sell and distribute its MGC Derma cosmetic products across the European Union.
The MGC Derma product range is expected to hit US shelves by the end of October and will be manufactured in the company’s Slovenian production facility.
Nativ Segev, Co-founder and Managing Director of MGC Pharmaceuticals said “MGC Pharmaceuticals is moving forward in its commercialisation strategy at a rapid pace..we are delighted to now be entering the US cosmetics market, this will be followed by growing into the Pharma industry.”
“Receiving FDA approval and signing this key distribution agreement with C&M allows us to start selling our cosmetics products into the large US cosmetics market, expected to be worth $11 billion in revenue in 2016 alone.” Said Mr Segev.
By Matt Birney
