Confirmed: MGC Pharma’s cannabis strains contain industry-high levels of THC and CBD
Health & Biotech
Health & Biotech
Special Report: Independent test results of Aussie biopharma company MGC Pharmaceuticals’ (ASX:MXC) have shown its cannabis strains contain some of the highest levels of THC and CBD reported.
The company had its premium grade MXC-10, MXC-81 THC and other CBD genetic strains tested and validated at the University of Ljubljana (UOL) in Slovenia.
MXC-10 contains over 35 per cent THC and is the highest content of any MGC Pharma genetic strain cultivated to date, while its original strain MXC-81 was confirmed to now yield over 20 per cent CBD and <1 per cent THC.
These results could deliver significant commercial outcomes, as they allow MGC Pharma to harvest high amounts of active pharmaceutical ingredient (API) per kilogram of raw material to create the most cost effective and affordable phytocannabinoids or medicinal cannabis products.
Earlier this year the Slovenian Ministry of Health granted MGC Pharma the ability to extract phytocannabinoids from cannabis flowers and generate its own natural phytocannabinoid APIs.
The road to new genetic strains
The report verified that the company followed compliance procedures during the cannabinoid’s extraction process from its 2018 Slovenian breeding program.
The flowers were harvested and dried and then the cannabinoids were extracted at UOL’s Biotechnical Faculty, with results recently independently verified by Prof Dr Borut Bohanec, Head of the Chair of Genetics, Biotechnology, Statistics and Plant Breeding at the University.
The two genetic strains are proprietary strains developed by MGC Pharma using cannabinoids extracted from cannabis plants cultivated at its Slovenian breeding program.
They are aimed at supporting the company’s growth strategy of developing and manufacturing a wide range of innovative medicinal cannabis products to treat neurological conditions that currently have no effective treatment.
Undervalued as company heads to commercialisation
The test results are the latest step in its path towards full commercialisation, co-founder and managing director Roby Zomer told investors.
“These results are important for us and our development as a pharmaceutical company working towards bring a plethora of premium medicinal cannabis medications to market,” he said.
“Such high quantities of THC and CBD means we can scale up production while streamlining operations due to the cost effective nature of the yield.”
Recently, Edison Investment Research put a price tag of $140 million on the company, pointing to its various activities and products.
“We estimate the underlying demand for medical cannabis in [the eight European countries with more liberal medical marijuana laws] to be equivalent to 14,000kg of resin per year,” the Edison report said.
“We model MGC’s API production in 2023 to be equivalent to 500kg of resin, which is approximately 3 per cent of estimated underlying demand in these eight countries.”