Over the last six months MGC Pharmaceuticals Ltd’s [ASX:MXC] share price had been traveling pretty consistently, but since October shares of MGC have spiked.
It peaked at an intra-day high of $0.081 on 16 October from its intra-day low of $0.065.
MGC provides cannabidiol-based herbal cream — amongst other products — which is used to treat psoriasis in Australasia, the European Union and US.
MGC Pharmaceuticals share price relishes in successful clinical tests up
It seems MGC has put a lot of ground work into the success of their products, having signed a $40 million supply agreement in October last year to supply 15,000kg a month of CBD products to Korean cosmetics manufacturer, Varm Cosmo.
Currently the CBD-based cream has seen successful clinical trials help in the treatment of itchiness, flaking and severe dryness in mild and moderate cases of psoriasis.
MGC also has two more CBD-based products, a cream which treats seborrheic dermatitis and an ointment for oily, acne prone skin, which hit the Australian market earlier this year.
On 11 October, MGC also made an orally administered CannEpil treatment for people with refractory epilepsy, which will be supplied in Australia under the Authorised Prescriber Scheme.
The first batch of CannEpil is anticipated for December this year and will be dispersed under the company’s agreement with HL Pharma.
While this could have added to MGC’s share price gain, it’s likely that the news of Canada legalising the recreational use of cannabis might have had something to do with it.
Shares of MGC Pharmaceuticals seem to be performing modestly now. In fact, they seem to be riding along with this ‘Marijuana Mania’.
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MGC Pharmaceuticals upcoming news
In an ASX release earlier this week, MGC couldn’t give a reason as to why its shares had increased this month.
Instead they told investors and shareholders that they are not aware of any information about MGC Pharmaceuticals that hasn’t already been shared to the market.
However, MGC has recently announced plans for the immediate production of the CannEpil treatment under the Authorised Prescriber Scheme.
Roby Zomer, Co-founder and managing Director of MGC, commented on the treatment:
‘We are delighted to announce the availability of our first product CannEpil for supply under the Authorised Prescriber Scheme. This is a significant achievement for us and we are very excited at the prospect of ramping up production to a commercial scale and bringing CannEpil to Australia.
‘This important step validates MXC’s seed-to-pharma strategy with the start of commercial revenues from our first investigational medicinal product offering.’
The company expects to generate $1 million in yearly revenue from its initial 100 patients.
For Money Morning
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