Medical marijuana player MGC Pharmaceuticals have hit another important milestone, with the Perth-listed company signing a supply agreement with specialist Australian pharmaceutical distributor HL Pharma.
According to MGC management, the execution of the definitive exclusive supply agreement means its CannEpil adult epilepsy product is on the verge of being available in the Australian market with the product expected to hit the shelves from early 2018.
In a market update, MGC said the release of the product, once all necessary approvals for importation were obtained, was expected to generate about $1 million per year from the less then 100 patients registered for the product.
With the supply agreement signed, MGC said there were now no commercial roadblocks to delivering CannEpil to the potential market of over 70,000 Australian sufferers of the condition who don’t respond to conventional treatment.
MGC shares broke through 8c yesterday touching 8.1c following MGC’s announcement to the ASX.
MGC CEO Roby Zomer said: “We now have a clear pathway to the commencement of an Australian sales pipeline and revenue stream for our medical cannabis products which is a key milestone for our company and is further evidence of the strong momentum that we are building through the execution of revenue generating agreements.”
CannEpil, administered to patients as a liquid, should retail for under $800, the company added, making it significantly cheaper that its competitors.
MGC, arguably Australia’s leading medical cannabis company, has previously said it is in the process of manufacturing CannEpil in order to meet HL Pharma’s first order of 170 50mL bottles.
Another plus for the Perth-headquartered company is that it already has strong links within peak body Epilepsy Action Australia, which it hopes to leverage to grow its doctor and patient list of CannEpil users.
MGC has registered interest from five doctors todate who are looking to prescribe CannEpil to their patients and the company is currently in the process of applying for authorised prescriber status with Australian authorities.
By Matt Birney
