MGC Pharma finalises deal to bring cannabis epilepsy drug to Australia
Health & Biotech
Health & Biotech
Cannabis producer MGC Pharmaceuticals has finalised a deal to bring its epilepsy treatment CannEpil to Australia from early 2018.
The deal with specialist drug distributor HL Pharma — first announced earlier this month — means more than 70,000 Australians suffering from drug-resistant epilepsy will now have a new treatment option.
MGC Pharma (ASX:MXC) will initially earn about $1 million a year from 100 or so patients already registered. Patient numbers are expected to grow significantly next year.
The drug will be produced at MXC’s Slovenian lab and imported to Australia once HL Pharma has finalised regulatory approvals.
The move has been backed by Australia’s leading provider of epilepsy services, Epilepsy Action Australia (EEA).
About 25,000 Australians are diagnosed with epilepsy each year and some 240,000 are now living with the disease.
CannEpil is aimed at drug-resistant or refractory epilepsy – which covers about 30 per cent of all cases or around 70,000 in Australia, according to EAA.
A 10 per cent share of the potential market of 70,000 Australian patients would deliver $70 million in annual turnover.
CannEpil will be available with an authorised doctor’s prescription for a regular retail price of less than $800 – a price point that is lower than the competing product on the market, MXC says.
Under the deal, MXC and HL Pharma will explore distribution of future MXC products.
“We now have a clear view on the pathway to the commencement of an Australian sales pipeline and revenue stream for our medical cannabis products which is a key milestone for our company and is further evidence of the strong momentum that we are building through the execution of revenue generating agreements,” said Roby Zomer, MXC’s co-founder and chief executive.
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