MGC Pharma expands network in Australia with clinics deal
Health & Biotech
Health & Biotech
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MGC Pharmaceuticals (ASX:MXC) has completed its $1.4m acquisition of Cannvalate’s Medicinal Cannabis Clinics (MCC) business to expand its distribution presence in Australia.
The acquisition includes the clinics of the MCC business, intellectual property, and data sets which have been transferred to an Australian company owned by MGC Pharma.
The Australian company, Medicinal Cannabis Clinic Proprietary Limited (MCCPL), will allow MGC Pharma to significantly expand its operational and distribution capacity in Australia.
“The MCC acquisition enables MGC Pharma to increase profit margin and meet our stated goal of providing high quality cannabinoid medications to patients at an affordable price,” managing director and co-founder, Roby Zomer said.
Cannvalate received $1m in MGC Pharma shares and $400,000 cash for its clinics business and associated intellectual assets.
MCCPL is in the process of obtaining all of the relevant state and federal licences for the importation and distribution of medicinal cannabis products in Australia.
After this, MGC Pharma intends to move all of its Australian supply chain into MCCPL.
“As previously announced, this acquisition significantly improves our distribution network and supply chain capabilities and efficiencies both in Australia and internationally,” Zomer said.
The company has established an extensive doctor-patient network for the distribution of its affordable cannabis-based medical treatments.
MCC has facilitated more than 4,000 medical consultations between doctors and pre-screened patients in Australia since the inception of its business.
Patients in Australia can access cannabinoid medications through telemedicine conferences with doctors for a range of MGC Pharma products that can be dispensed through its 600 partner pharmacies.
Company products available for Australian patients include, CannEpil for drug-resistant epilepsy, and CogniCann for dementia and Alzheimer’s, and its Mercury Pharma range.
MGC Pharma will control all of the supply chain for its Australian subsidiary, MCCPL, from product manufacturing to distribution to patients.
This additional distribution capacity in Australia will considerably reduce MGC Pharma’s importation, storage, and distribution costs, further enhancing the affordability of its product range.
The newly-acquired medicinal cannabis clinics business will continue to be managed by Cannvalate and Dr Gal Wong for the next two years to ensure a smooth handover of the business.
MGC Pharma signed the acquisition deal for MCC in July, and the paperwork was finalised on November 20.
The biotech company is carrying out research into an anti-inflammatory treatment for COVID-19.