Shares in MGC Pharmaceuticals have risen more than 40 per cent after the WA company revealed first orders for its plant-derived medicinal products in the US.
Shares in MGC Pharmaceuticals have risen more than 40 per cent after the Western Australian company revealed first orders for its plant-derived medicinal products in the US.
Today, MGC said it had signed a three-year supply and distribution agreement with private company AMC Holdings for a number of MGC’s phytomedicines, including its CannEpil, CogniCann, and CimetrA products.
AMC is required to spend at least $US24 million ($A33.1 million) under the agreement, including $US3 million within the first year.
The Kansas-based company will also be responsible for executing clinical trials and marketing initiatives in the US, as well as managing import and warehousing activities.
AMC will need a national clinical trial number (NCTN) for MCG’s products – expected before October – which will allow US hospitals to participate in the clinical trials.
MGC co-founder and managing director Roby Zomer said the agreement would give the West Perth-based business access to the largest healthcare market in the world.
“We look forward to working with our new partners at AMC and utilising their expertise and network to widen patient access to MGC’s phytomedicine products,” he said.
“This agreement provides MGC Pharma with a pipeline for strong revenue streams over the next three years, with the possibility of larger revenues to follow, and the opportunity to be at the forefront of phytomedicines in the US.
“Additionally, the ability to add new sites to our current clinical trials programmes for CannEpil and CogniCann will greatly enhance the ongoing process for both.”
The agreement will first focus on MGC's CannEpil product – recently made available to patients in Ireland – with a view to distribute it to patients through Florida’s Early Access Scheme.
AMC’s general counsel and president of AMC Florida, Brent Yessin, said healthcare providers and researchers in the US were seeking alternative to existing drugs or protocols.
“MGC’s track record developing botanical or bio-pharmaceutical solutions as alternatives to existing medications, many of which have negative side effects affecting patients’ quality of life, made this an exciting collaboration for AMC,” Mr Yessin said.
“We look forward to introducing MGC’s products to our national medical community.”
MGC’s share price closed up 44 per cent today to trade at 5.6 cents.