MGC Pharma just extended a deal to stock its cannabis skincare range in Harvey Nichs
Health & Biotech
Health & Biotech
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Special report: ASX-listed cannabis leader MGC Pharma has expanded its deal with one of the world’s best-known retailers, Harvey Nichols.
Last month MGC Pharma’s (ASX:MXC) European subsidiary MGC Derma sealed a deal to sell 18 of its cannabinoid-based skincare products through the world-famous department stores.
Demand has been so strong the premium cannabidiol MGC Derma and Derma Plus collections will now be sold in a further two British stores in Birmingham and Edinburgh.
“The additional two stores are expected to generate increased revenue as sales continue to be driven by a successful PR and marketing campaign that has cemented the MGC Derma footprint within the UK,” MGC Pharma told investors.
The campaign has appeared in prestigious print and online publications including The Guardian, The Daily Mail, The Evening Standard and BritishBeautyBlogger.com – which together reach almost 40 million Brits.
The deal follows a move in February by online cosmetics store Cult Beauty to stock 15 of MGC Pharma’s dermatological products.
Under the deal, 15 cannibidiol (CBD) products from the cannabis producer’s MGC Derma subsidiary — as well as its Derma Plus skin care line — are now sold on the Cult Beauty site.
MGC Pharma co-founder and managing director Roby Zomer said the core business strategy for the company was to develop and supply high quality cannabinoid-based pharmaceutical products for growing markets in Europe, North America and Australasia.
“We’re very excited to see the MGC Derma collection gaining such traction with premium retail platforms internationally,” Mr Zomer said.
“The UK is an exciting market for us due to recent changes in legislation and I look forward to exploring the possibilities for the MGC pharma division here.”
Bright future for cannabis stocks
The cannabis sector has become an intriguing ASX institution in the past two years.
The legalisation of cannabis is playing a huge role in growing the budding industry on a global scale.
Australian cannabis companies rushed to take advantage of new legislation introduced by the Federal Government in early 2017 that allowed companies to import medicinal products for the first time.
Cannabis stocks soared again when the government announced that companies could begin exporting products internationally earlier this year.
MGC Pharma is one of several industry players transforming cannabis into a range of products, attracting the attention of high end retailers wanting a slice of the action.
Just the start
The legal cannabis industry will boom over the next decade, according to Arcview Market Research and its research partner BDS Analytics.
Spending on legal cannabis worldwide is expected to hit $57 billion by 2027, while Australia’s legal cannabis market is forecast to grow from $52 million in 2018 to $1.2 billion by 2027, making it the fifth largest market in the world, the report reveals.
MGC Derma and Derma Plus cosmetics products contain cannabidiol (CBD), developed to target and improve inflamed and irritated skin conditions.
CBD is one of at least 113 active cannabinoids identified in cannabis, but doesn’t have the intoxicating effects caused by tetrahydrocannabinol (THC).
The premium range of MGC Pharma products are research-based and dermatologically tested.
A survey by MGC Pharma found that 92 per cent of product users they would use the products on a daily basis, positioning the company well under the luxury Harvey Nichols brand.
MGC Pharmaceuticals is the only ASX-listed medical cannabis company that has a clinical research presence in Israel, Europe and Australia.
This special report is brought to you by MGC Pharma.
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