MGC Pharma strikes exclusive world-wide product distribution agreement
Health & Biotech
Health & Biotech
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Biopharma company MGC Pharmaceuticals (ASX:MXC) has stuck a worldwide supply and distribution agreement for its anti-inflammatory medicinal cannabis product that can be used to treat COVID-19.
The three-year agreement is with Swiss PharmaCan, a European market-leading nutraceuticals product distribution company, and provides direct access to large and growing markets.
“Following the successful results achieved from our phase two clinical trial in December, we are very pleased to have signed this agreement with Swiss PharmaCan for worldwide distribution of our anti-inflammatory product as a food supplement as it provides full product validation of its therapeutic benefits,” MGC Pharma co-founder and managing director, Roby Zomer, said.
The deal comes only a week after MGC Pharma was admitted to membership of the London Stock Exchange as its first listed medicinal cannabis company.
PharmaCan will distribute MGC Pharma’s anti-inflammatory medicine in the form of a food supplement and is for a minimum quantity of 40,000 units per three-month period, or 160,000 units per year.
Swiss PharmaCan will take delivery of an initial batch of 10,000 units of the medicinal cannabis product with a total retail value of $US850,000 ($1.1m).
The biopharma company will also produce and provide for worldwide distribution an additional daily supplement product that is designed to maintain the strength of the human immune system.
“We are very happy with the successful cooperation between MGC and Swiss PharmaCan,” Swiss PharmaCan chief executive and board member, Michel Fässler, said.
MGC Pharma can easily accommodate Swiss PharmaCan’s regular order at its manufacturing plant in Slovenia where it is producing commercial-scale quantities of its products.
Swiss PharmaCan will be responsible for obtaining all relevant permits, approvals, certificates and licences and customs clearances under the distribution deal with MGC Pharma.
The European company will also carry out marketing, advertising, and promotional activity for MGC Pharma’s products.
Swiss PharmaCan has already secured two distribution partners, Relay Medical Corporation (CSE:RELA) and Glow LifeTech, for exclusive North American and Caribbean sales.
Another distribution partner, Onasis Holdings (OTC:ONSS) has agreed to ship MGC Pharma’s cannabis-based anti-inflammatory medicine through its channels in the US and Central America.
The distribution deal follows the successful completion of a Phase Two, double-blind, placebo-controlled clinical trial into using the anti-inflammatory medicine for COVID-19.
Clinical tests have shown that MGC Pharma’s anti-inflammatory medicine can lower the human immune system’s inflammatory response to the virus, known as a cytokine storm.
Fifty COVID-19 patients in India and Israel were involved in the trial that has met all of its primary and secondary end points.
The clinical trials demonstrated the full safety and efficacy profile of the medicinal cannabis product without any drug-adverse events.
The trials also showed the medicine’s ability to prevent a deterioration in COVID-19 patients’ medical condition, and for them to achieve a faster clinical improvement while relieving symptoms and pain associated with the virus.
The clinically-tested food supplement contains four natural based ingredients consisting of Artemisinin, Boswellia serrata, Curcumin and Vitamin C.