MGC Pharmaceuticals Ltd (ASX:MXC) (OTCMKTS:MGCLF) (FRA:H5O) will receive a 3.1 million Euro (~A$5 million) cash grant to set up a fully functional GMP certified facility in Malta to produce a COVID-19 anti-inflammatory product ArtemiC(TM) in liquid dose form.
The grant from Malta Enterprise will enable the company to renovate and extend its existing Clinical Research Organisation (CRO) facility in Malta.
This will create a European manufacturing hub for ArtemiC(TM) with the ability to scale production to meet expected growing demand following positive clinical trial results.
The European Union GMP-compliant facility will be able to produce 10,000 units of liquid dose medicines per day.
Strong Maltese support
The company has received strong support from the Maltese government through Malta Enterprise to establish the world-class GMP facility to respond to the growing pharma and cannabis industries on the island.
Construction of the extension to the MXC Malta facility has commenced and is expected to be completed in the second quarter of 2021.
Establishing a European hub
MGC Pharma co-founder and managing director Roby Zomer said: “MGC Pharma is very committed to our operations in Malta and helping to build a responsible and viable industry to support the island’s emerging pharma and cannabis industries.
“We have been working closely with Maltese Authorities and Malta Enterprise and now have a tremendous opportunity to establish a European hub for our anti-inflammatory product, ArtemiC(TM), which is continuing to have positive clinical trial results.”
Shares have been as much as 17% higher to A$0.028 intra-day.
Opportunity for ArtemiC(TM)
MGC Pharma, a European based bio-pharma company specialising in the production and development of phytocannabinoid-derived medicines, recently completed a renovation of the CRO Facility in Malta with assistance provided by Malta Enterprise.
Following the Malta Enterprise COVID-19 initiative, MGC Pharma was presented with a unique opportunity to extend and build a world-class, fully functional, EU-GMP manufacturing facility and create a European manufacturing hub for ArtemiC(TM).
Upon completion of the facility, MGC Pharma will be in a strong position to streamline global distribution via Malta’s convenient shipping access to the entire globe.
Initial target markets for the distribution of ArtemiC(TM) will be Israel, Russia, the CIS countries and countries in the Balkan region as determined by a distribution agreement signed with KS Kim International, a wholly-owned subsidiary of SK-Pharma group.
Malta Enterprise is the country’s economic development agency, tasked with attracting new foreign direct investment as well as facilitating the growth of existing operations.
In June this year, Malta Enterprise announced the financial support not exceeding 80% of the eligible costs to support the production of COVID-19 relevant products in the country.
Strengthening position as a hub
Malta Enterprise chief executive officer Kurt Farrugia said: “Malta Enterprise has been working closely with MGC Pharma Ltd, for almost two years now.
“We are very proud that their activities in Malta will now also involve the production of ArtemiC(TM), a treatment whose effectiveness against the COVID-19 virus is currently being scientifically and clinically proven.
“The production of ArtemiC(TM) in Malta will continue to strengthen our position as the ideal hub for advanced manufacturing and scientific development, and Malta Enterprise, as a strategic partner for anyone seriously interested in investing in Malta.”