MGC fourth quarter revenues hit high note
MGC Pharmaceuticals’ seed-to-pharmacy strategy is picking up significant momentum with the ASX-listed company reporting revenues of $763,000 in the fourth quarter ended 30 June 2019.
Notably, this is well above the sales revenue of $296,811 that it recorded in the entire 2017-2018 financial year.
The result is due, in part, to the receipt of $469,000 in revenue from private Canadian cannabis investment company CannaGlobal for cannabis-based cosmetic raw materials under their five-year supply agreement.
Managing Director Roby Zomer said: “This has been a fantastic quarter in which we have delivered material results from our core pharma business strategy and increased the critical distribution channels for our portfolio of internally developed high quality, cost-effective phytocannabinoid medical products through five agreements opening new global markets.”
“In addition to this, our non-pharma business units resulted in a substantial increase in revenue.”
“MGC Pharma is also continuing with significant advancements within our Research and Development division as we continued to work closely with leading academic institutions internationally to firmly position the company at the forefront of future medical developments in this sector.”
“We hope to be in a position to provide a significant project update shortly to shareholders on our state-of-the-art Maltese GMP production and development facility, where we are the leader in the emerging industry, a key platform for further revenue generation and growth as one of the leading players to service the huge European patient market.”
MGC reached distribution agreements with five new partners in the June 2019 quarter that provides access to the medical cannabis markets in the UK, Germany, Austria, Switzerland, Brazil and Australia.
This has already delivered growth for the company’s pharma business with Australian distributors Health House International and Cannvalate already issuing about $300,000 worth of purchase orders in the first month.
In addition, the study into the efficacy of cannabinoid-based medicines in the treatment of brain tumours by the National Institute of Biology (NIB) and University Medical Centre Ljubljana in Slovenia has returned positive initial findings.
MGC’s Phase II clinical trial for its “CogniCann” medical cannabis product for the treatment of dementia and Alzheimer’s patients being conducted in collaboration with the University of Notre Dame in Perth is also progressing well ahead of schedule.
The company expects to conclude the trial in the second quarter of 2020, about 12 months ahead of schedule due to the unexpectedly high level of interest from potential candidates to participate in the trial.
NB: This article is for general financial markets news purposes only and is not to be taken as an endorsement of, or advertisement for any individual product, medicine or drug.
MGC Pharmaceuticals (MXC)
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