MGC Pharmaceuticals has received early signs of revenue growth from its medical cannabis business with the company already receiving additional product orders under its agreements with Australian distributors Health House International and Cannvalate.
The company has just completed an initial order of $200,000 of cannabis-based pharmaceutical products to the distributors and has received another order that will provide an additional $100,000 to the company’s revenue in the September quarter.
Management said this was due to positive feedback from patients that led to doctors writing new prescriptions and a number of repeat prescriptions.
Under the non-exclusive distribution agreements, Health House and Cannvalate will improve the availability of MGC’s medical cannabis products under the Special Access Scheme via an expanded network of clinics and pharmacies.
MGC has permission from Australia’s Therapeutic Goods Administration to import its medicinal cannabis-based products for supply for use in either a clinical trial or under the Special Access Scheme, which allows health practitioners to access therapeutic goods that are not in the Australian Register of Therapeutic Goods for their patients under exceptional clinical circumstances.
Health House wholesales and distributes medicinal cannabis products in Australia and the UK to community and hospital pharmacies while Cannvalate is Australia’s largest network of cannabis prescribers and dispensaries with over 1000 doctors and more than 600 pharmacies.
The increasing orders for MGC’s medical cannabis products follow closely on the heels on the receipt of a $700,000 purchase order from Canadian cannabis investment company CannaGlobal for cannabis-based cosmetic raw materials earlier this month.
Separately, MGC now expects to conclude the Phase II clinical trial for its “CogniCann” medical cannabis product for the treatment of dementia and Alzheimer’s patients in the second quarter of 2020, about 12 months ahead of schedule.
This is due to the unexpectedly high level of interest from potential candidates to participate in the trial.
The Good Manufacturing Practice certified CogniCann would be tested on 50 participants aged 65 years and older over an 18-week period to assess the effects of the treatment on the symptoms of mild dementia and Alzheimer’s and the improvement of patient’s quality of life.
A series of pre and post treatment surveys and focus groups will also be carried out to assess care givers and family member’s knowledge and perceptions towards the use of the treatment.
Managing Director Roby Zomer said: “We have already been reaping the commercial benefits of the signed distribution agreements with Health House International and Cannvalate with first material revenues coming from initial orders in addition to experiencing a significant increase in product orders.”
“This is testament to the quality and affordability of MGC Pharma’s products that ensure doctors remain confident when prescribing to patients and reflects strong immediate demand from the market.”
Mr Zomer added that the unanticipated level of demand to participate in the Phase II clinical trial for CogniCann demonstrated the considerable interest in medical cannabis and growing awareness in its potential medicinal benefits.
“The volume of applications has meant that the recruitment process will not take as long as originally anticipated and will result in a considerable time saving for the completion of the study which we now look to complete in Q2 2020, significantly ahead of schedule,” he added.
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