MGC Pharma has turned potential into momentum in Q2
Health & Biotech
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Special Report: Prescription numbers surge as MGC Pharma finds its footing in the global cannabis marketplace.
MGC Pharmaceuticals (ASX:MXC) has seen a 450 per cent increase in prescriptions during the December quarter as volumes hit 1890, up from 337 at the end of September.
Patient numbers increased by more than 600 per cent to 811 and sales hit $950,000, driven by new product demand and returning users.
Furthermore, the company said it received significant orders in January for its flagship CannEpil oil treatment for epilepsy, Irish sales approval, and after launching its new Mercury Pharma 100 line.
MGC also obtained approval to sell its products in Brazil during the December quarter, and in January signed with a distributor for Peru and Bolivia.
The first bulk shipment of its dementia treatment CogniCann arrived in Australia, allowing a phase IIb clinical trial with the University of Notre Dame Western Australia to start in February.
“The MGC team has delivered tangible results in the last quarter and the continued climb in prescription numbers, which has now, in January, passed 2,000, illustrates the clear market demand for our phytocannabinoid derived medicines,” MGC cofounder and managing director Roby Zomer said.
“We believe this rapid growth trajectory of patients and prescriptions will continue in 2020. Our products are now available on three continents and as the knowledge of MGC Pharma’s medicines improves amongst healthcare professionals, we expect continued strong increases in prescription numbers.”
Zomer says the last quarter saw the launch of a new brand, Mercury Pharma, in Australia and New Zealand as a more affordable cannabinoid prescription product.
MGC told investors that during the quarter momentum increased for new prescriptions in Australia, the UK, and Brazil, and with the recent import approval for Ireland.
It said this demonstrated the immediate and revenue generating potential of the company.
MGC hit its 200-script milestone in mid-September 2019 and this has since surged to over 2,000 prescriptions in early January.
It said 33 per cent of MXP100 and 43 per cent of CannEpil were repeat prescriptions.
Brazilian distribution partner ONIX Empreendimentos e Participações made its first order, which was shipped at the end of December 2019, and a second order has come through in January.
MGC says it’s getting, on average, over 30 prescription orders per business day.
At the end of November, MGC signed a binding term sheet with Brazilian business services company BrasilInvest to establish a 50:50 joint venture for retail sales and marketing in key Brazil and Latin American markets.
Formal approval for the sale of CannEpil into Ireland means it will be one of the first cannabinoid-based medicines approved for prescription and sale under the Irish government’s Medical Cannabis Access Programme, and MGC says the first shipment is “imminent”.
MGC says access to the Irish market could be a catalyst for fast-tracking approval applications in other EU member state countries such as Germany, Austria, Italy and France.
The company has distribution agreements already in place across Europe and says it’s “well positioned for a quick entry to these markets”.
In January, the company launched its affordable range called Mercury Pharma 100 in Australia and New Zealand markets, and purchase orders for 2,000 units of have been received which is set to deliver an immediate positive effect on near term revenues.
During the quarter the company moved ahead to complete a dual listing on the London Stock Exchange, lodging the final documentation during December.
The UK legalised medicinal cannabis in November 2018.
MGC says it’s positioned to be one of the first medical cannabis companies to list on a major exchange in the UK, and the funds raised are to be spent on building out the company’s Malta growing and manufacturing base.
The Malta GMP certified processing and production facility moved ahead in the December quarter as all the architectural, structural and GMP designs of the facility were completed and all construction and planning approvals were received.
The company will initiate the civil works and construction works once it completes the listing in the UK.
“The Malta facility will enable MGC Pharma to materially scale up its existing production capacity and future revenue generation potential, which is currently centred on its research and manufacturing facility in Ljubljana, Slovenia,” the company said.
MGC’s EU-GMP certified Slovenian compounding and manufacturing facility remains the main site for production.
The Slovenian facility has the capacity to manufacture up to 12,000 prescription products per month.
>> NOW WATCH: 90 Seconds With… Roby Zomer, MGC Pharmaceuticals