MGC Pharma is on a roll, selling $225K in cannabis oil in the past four weeks
Health & Biotech
Health & Biotech
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Perth-based MGC Pharma (ASX:MXC) says it had consecutive record week-on-week sales of cannabis oil and revenue growth over September and October, making $225,000 in the last four weeks alone.
The West Perth-based company has seen a substantial increase in sales in Australia since launching its Mercury Pharma range of CBD and THC oils through Australia’s leading medicinal cannabis distributor, Cannvalate.
Under an Australian Import Licence granted to MGC in July, the company is able to import its Slovenian-manufactured medicinal cannabis products into Australia for sale through pharmacies.
In Brazil, MGC is able to sell directly to patients and began doing so this month, giving the company greater control over its supply chain.
The company sold over 800 units to 450 patients in the week ending October 5, up from around 100 units and 50 patients six weeks prior.
The domestic order pipeline is strong through at least the end of 2020, putting MGC on track to achieve its goal of sales of 5,000 units a month by the first half of next year. That’s the cashflow breakeven status for the company.
“It is increasingly brought to our attention that one of the major inhibiting factors for patient access to medicinal cannabis in Australia, and globally, is the high price point that comes with high-quality medications that are not covered by insurance,” says MGC Pharma chief executive Roby Zomer.
“We are constantly streamlining our operations in order to lower our overall cost base, to ensure we can meet our obligation to increase patient access to affordable, high-quality medicinal cannabis products. We are seeing the results of this strategy through the increase in patient demand and sales volume.”
The company is monitoring the situation in Slovenia, where the prime minister has declared a 30-day epidemic due to the rise in COVID-19 cases, but thus far the company has authorization to continue operations due to the pharmaceutical nature of the business.
The team in Slovenia is managing infection risk by operating in two independent shifts, MGC says.
MXC shares rose 4.3 per cent on today’s news: