MGC Pharma welcomes Australia’s reclassification of psychedelic compounds

MGC Pharmaceuticals has welcomed the new regulation in Australia making it the first country to allow psychiatrists to prescribe psychedelics to patients with depression or post-traumatic stress disorder (PTSD).

Effective from 1st of July 2023, MDMA and psilocybin have been reclassified as medicines for some complex mental health conditions.

Authorities in Australia have now placed the two drugs on the list of approved medicines by the Therapeutic Goods Administration, allowing patients suffering from depression and PTSD to access them under the care of authorised Australian physicians.

MGC Pharmaceuticals (ASX:MXC) already has permission from the Slovenian Ministry of Health to undergo scientific research developments of psilocybin, a naturally occurring psychedelic compound found in a variety of fungi and mushrooms.

And now with Australia’s regulatory changes, MGC’s ability to research, develop and manufacture for third parties has the potential to open up new business units and future revenue streams for the company.

First mover in psychedelic industry

Following the latest regulatory advancements, MGC Pharmaceuticals (ASX:MXC) has positioned itself as a key player in pioneering psychedelic research and development and as a result, the company is now able to offer accurate, pharmaceutical-grade products.

“We are excited by the new regulation that enables psychedelics to be prescribed to patients in Australia,” MD and CEO Roby Zomer said.

“MGC has positioned itself at the forefront of this industry with its ability to reach patients in need via companies dealing with psilocybin and backed by pharmaceutical standards.”

Additionally, MGC will look to expand sales in Australia through the company’s existing channels to provide psilocybin to those in need of treatment.

This article was developed in collaboration with MGC Pharmaceuticals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.