As COVID-19 cases are climbing alarmingly in Russia and its surrounding countries, MGC Pharmaceuticals (ASX:MXC) has signed an offtake agreement with an Israeli company for a health food supplement for that region.

K.S. KIM International, a division of SK-Pharma Group, has the rights for at least two years to sell into Israel, Russia, Commonwealth of Independent States countries including Georgia, Ukraine and Belarus, and countries in the Balkan region.

SK-Pharma Group chief Shlomi Sadoun said the COVID-19 pandemic was stretching healthcare systems around the world and people were hungry for supplements that could keep them in good health.

The binding term sheet doesn’t include a minimum order value but does commit the Israeli distributor to do market research on demand and marketability in those countries.

A definitive agreement is set to be signed within a month of a study into the supplement being completed.

“We are extremely pleased to have our first term sheet in place for future sales and distribution,” MGC Pharma managing director Roby Zomer said.

“We look forward to working with the SK-Pharma group and executive team, who are one of the largest distributors of medicines in Israel, Russia, the CIS and countries which are potentially very significant patient markets for the product.”

SK-Pharma Group is a vertically integrated pharma company with operations in 19 countries and a network of more than 120 partners.

Read MoreCOVID-19Health

Featured Companies

You might be interested in