The milestones in the reporting period included an acquisition, first product deliveries, the expansion of production facilities and further clinical progress
(ASX: MXC) said the past half year was “a strategically important time” as the medical cannabis company reached a number of strategically important milestones.
After this Listed on the London Stock Exchange earlier this month and raised £ 6.5m in fundraisingDirectors said the group was “in a strong financial position to pursue identified growth initiatives”.
Due to the sale of its proprietary cannabinoid products, total drug sales for the half year ended December 31 were A $ 741,911, compared to A $ 134,536 a year ago, although total sales decreased from A $ 1.8 million a year ago due to non-pharmaceutical sales was discontinued.
Operating losses were reduced from A $ 11.8 million to A $ 5.6 million.
At the end of December, the balance sheet showed cash of AUD 1.5 million, which was topped up by the IPO in London.
The milestones in the reporting period included an acquisition, first product deliveries, the expansion of production facilities and further clinical progress.
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In mid-November, MGC Pharma completed the 100% acquisition of the telemedicine clinic-based assets, data and intellectual property rights of Medicinal Cannabis Clinics (MCC), which have conducted more than 300 patient consultations since completion.
In addition to the income from consultations, the expansion will provide MGC with an operating platform with import and export capacities that will significantly expand market access and enable control over the supply chain from manufacture to patient.
The acquisition also enables the group to continue offering GMP (Good Manufacturing Practice) certified drugs to patients in Australia, further improving profit margins while keeping their products at competitive prices.
In October, MGC Pharma shipped its first batch of MP Line products, its affordable range of products, directly to patients in Brazil through a binding supply and distribution agreement with ONIX Empreendimentos e Participaçes of Brazil.
The company is the world’s first to deliver high-THC formulations directly to a patient’s door in Brazil without visiting a pharmacy. This is done as part of the Brazilian Compassionate Program after receiving patients’ prescriptions from a referring ONIX doctor.
MGC’s first line of products, CannEpil, a CBD-based drug used to treat people with refractory epilepsy, was also the subject of a distribution agreement with a leading cannabis company in Israel. A CannEpil was also recently launched.
READ: The cannabis company MGC Pharmaceuticals enters the trade in dietary supplements
After qualifying for a cash grant of over EUR 3 million, the group began renovating and expanding its existing facility for clinical research organizations on the Mediterranean island in December to include a fully functional GMP-certified liquid dosage form and COVID-19 manufacturing facility anti-inflammatory product, ArtemiC.
Construction is expected to be completed in mid-2021 when management will be able to increase ArtemiC’s production volume immediately. This will reduce logistics costs due to Malta’s geographic location and shipping access, expanding the company’s GMP certified manufacturing facility in Slovenia.
In the clinic, MGC Pharma completed its placebo-controlled double-blind Phase II clinical trial to evaluate the safety and effectiveness of the anti-inflammatory treatment ArtemiC in 50 patients diagnosed with COVID-19.
The results of this study show an improved state of health of the treated patients, whereby unlike those who received only a placebo, no additional oxygen, no mechanical ventilation or no admission to the intensive care unit is required.
Following this success, a phase III study is to begin in the June quarter.
“The study is expected to be a multicenter study of up to 250 patients and expand its research to a wide range of inflammatory indications for the use of ArtemiC for treatment,” the company said.