MGC Pharmaceuticals Ltd (LSE:MXC, OTC:MGCLF, FRA:H5O, ASX:MXC) shares ticked up today as it followed up last week’s milestone distribution agreement with US group AMC Holdings with good growth over the past year.
Revenues in the year to end June 2021 rose 43% to A$2.96mln, with phytocannabanoid sales up 69% to A$2mln. Sales of ArtemiC amounted to A$705,000, with the balance relating to revenues derived from consulting services.
The deal with AMC will see MGC will supply its phytomedicine products CannEpil, CogniCann and CimetrA for use in clinical trials.
MGC Pharmaceuticals delivers year of growth for 2021 with phytocannabanoid sales totalling A$2 million
AMC was created by a group of leading US Healthcare and ex-federal government legislative and regulatory executives as a vehicle for the import and distribution of (plant-based) phytomedicines into the States.
MGC said its new partner will seek US regulatory approvals for all products they intend to distribute, including import licences.
In an interview last week with Proactive managing director Roby Zomer said the agreement will give it the confidence to expand its activities in the US and seek FDA approval while also raising the company’s profile globally.
It opens the market and allows other companies to see us and give us more distribution deals around the world.
We’re going to going to get a short-term benefit but it is also likely to be the first of many other deals that are going to follow, he added.
“We will wait until the 30th of September to see additional clinical trials approval in United States, which will give us the first purchase order with money in the bank.”
Shares today rose 1% to 2.58p, valuing the Australian group at around GBP50mln.