MGC Pharmaceuticals’ Share Price Up 13.21% after Obtaining Cultivation Licence
Today, MGC Pharmaceuticals Ltd [ASX:MXC] announced it has been granted a cannabis cultivation research licence with RMIT (Royal Melbourne Institute of Technology) by the Australian Office of Drug Control (OCD).
MGC Shares opened in this morning’s trading up 13.21%, but have since come down. At time of writing, MGC Pharmaceuticals’ share price is up 7.54% to $0.057. This comes as a positive reaction to the licence.
MGC Pharmaceuticals funding the research
The granted cultivation licence as well as adjoining permit, allows MGC and RMIT to use the cannabis in research at its Melbourne facility.
MGC will fund the research, with all intellectual property from the trials belonging to the Bio-pharma, which will then obtain a patent.
Currently, it’s botanical and pre-clinical trials will focus on:
‘The optimisation of breeding and cultivation processes, [and] extracting material to assess the efficacy on prostate, melanoma and other cancer cells.’
MGC Pharma’s founder and managing director, Roby Zomer, commented on the licence:
‘Receiving the Cannabis Research Licence from the Australian Government Office of Drug Control is another major step forward for MGC Pharma as we look to deliver on our Seed to Pharmacy strategy. The Licence enables our strategic alliance with RMIT to advance on its objective to establish a world first library of cannabis medicines, as well as conducting ground-breaking pre-clinical research into the positive effects that medicinal cannabis may have on specific cancers.’
MGC Pharmaceuticals’ 2019 share price outlook
This year, MGC Pharmaceuticals is focusing on expanding on its pharma research agenda in Australia.
Mr Zomer said that the licence agreement offers further validation and strength in the growing medical cannabis sector.
The business plans to expand its R&D scope, so MGC can continue to treat and create solutions for epilepsy, cancer and pain.
Investors will have to wait for the results of the tests at RMIT, but if today’s jump in share price is anything to go by — it’s not a bad start.
For Money Morning
PS: In a brand-new report titled ‘Top Four Pot Stocks for 2019’, Sam Volkering reveals pot players dominating the local and global markets for legal marijuana.