Great timing for MGC Pharma as Malta passes medicinal cannabis legislation
Health & Biotech
Health & Biotech
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Special report: Malta’s government has passed legislation legalising the production of cannabis for medicinal use.
The move follows recent approval for MGC to operate a full medical cannabis production and cultivation facility in the country.
MGC Pharma (ASX:MXC) was one of just five companies – and the only from Australia – to be awarded the opportunity earlier this year.
Now it expects final formal agreements from the Malta Medicine Authority to be signed in coming weeks – giving it the go-ahead to start work on its new facility.
The country’s foreign investment body has set aside 4000 sq m of land for MXC – where it’s planning to build a research hub, Good Manufacturing Practice (GMP) certified production and manufacturing facility. MXC calls it a “seed-to-pharma” operation.
Good Manufacturing Practice refers to a set of principles and procedures that ensure therapeutic goods are of high quality.
“The production of cannabis for medical use has now become legal and regulated under Maltese legislation and a plot of land within one of the Maltese industrial zones has been designated to us for our project,” co-founder and managing director Roby Zomer told the market.
“Once the licence by the Malta Medicines Authority is issued we will be able to commence work on the project in Malta.”
The fully licensed production facility will produce all THC and CBD strains of pharmaceutical grade cannabis extracts for medical purposes — under a GMP regime. Further discussion is underway with local authorities to progress the facility.
CBD or cannabidiol is one of at least 113 active cannabinoids identified in cannabis. It has well-researched medicinal benefits — but unlike another cannabinoid, tetrahydrocannabinol (THC), it doesn’t get you high.
Malta is ideal an ideal location to serve the expanding European cannabis market and offers a tropical climate perfect for growing.
The medical cannabis market within the EU is expected to be worth $56 billion by 2020 with large growth in areas such as Germany – where the market is now worth an estimated $17.5 billion and observes a lower wholesale price of raw materials.
MGC Pharma is required to comply with all Maltese medicinal cannabis licences and permits to operate the facility, which have been outlined within the legislation and the company has government support to obtain.
This news follows a change to the company’s management in its next phase of development.
Mr Zomer stepped up from chief executive officer to managing director and co-founder Nativ Segev was appointed head of business strategy.
“These changes in roles are reflective the company’s development and maturity from a start-up to its current operational and revenue generation phase, driving this realignment with Roby and Nativ’s responsibilities and focus within MXC and its growing base of operations” MGC Pharma announced earlier this month.
This special report is brought to you by MGC Pharmaceuticals.
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