Pot stock MGC Pharma is racing into Brazil with new distribution deal
Health & Biotech
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Special Report: MGC Pharmaceuticals is going deep into Brazil, signing a distribution agreement with ONIX Empreendimentos e Participações (ONIX) to get its medical cannabis products into that thriving market.
ONIX’s subsidiary OnixCann specialises in distributing phytocannabinoid products in the region via an online platform called CANTERA, which allows products to be shipped directly to patients as well as collect data which can later be used by doctors.
The three-year deal covers MGC Pharma’s epilepsy treatment CannEpil and the dementia and Alzheimer’s medication CogniCann and, importantly, will be sold under MGC Pharma’s brand.
MGC Pharma cofounder and managing director Roby Zomer says the deal is a milestone towards their goal of establishing the company as a leading international producer of medical cannabis products.
“Brazil represents a key emerging market and with the expected growth of the use of cannabis-based medicines in the region it could become a significant market for the Company. We look forward to building on this relationship with ONIX, utilising its innovative digital platform, as we grow our presence in Latin America,” he said.
Brazil legalised medical cannabis in November last year.
There were fears new hardline President Jair Bolsonaro would oppose the legislation, but he has become a backer of the medical cannabis industry and Brazil is a hot spot for international investment.
The Latin American medical cannabis market is estimated to be worth $US8.5bn by 2028.
ONIX has no minimum purchase conditions in the first year of the agreement, but the two companies will agreement on minimums for the next two years.
Crucially, it’ll be up to ONIX to obtain all of the relevant permissions to get MGC’s products into the country.