MGC Pharmaceuticals (MXC ), a developer of plant-derived medicines, said it has received an order for US$1m from AMC Pharma to produce ArtemiC, an over the counter version of CimetrA, a nanoparticle formulation based on curcumin and boswellia.
The order comes alongside AMC's new supply agreement to distribute to over 100 holistic and wellness chiropractic offices in California and Florida. Together the deals should result in a significant ramp up of ArtemiC sales, with increasing distribution across the US.
AMC had placed an initial US$2m order in March 2023. This second US$1m order ups the total orders to date of ArtemiC by AMC to over 100,000 units. The new order is secured with an immediate down payment of US$150k.
AMC's continued interest validates ArtemiC for the US market, as well as MGC's ability to supply an FDA authorised product. The ArtemiC orders combined with AMC's newly signed supply agreement give MGC good visibility and a solid foundation for future growth.
ArtemiC's Phase 2 clinical trail was undertaken in 2020 and demonstrated a range of benefits for patients suffering from moderate Covid-19. Subsequent trials have proven ArtemiC to be an effective anti-inflammatory across a wide range of chronic diseases.
MXC shares jumped 4.12% on the news.
While MGC's main focus remains on its core assets of CimetrA and CannEpil, the company has also been branching out into development of psychedelic compounds-based treatments, including psilocybin, the active ingredient in so-called "magic" mushrooms.
Governments have begun to relax laws around the medical use of psychedelics, which have shown positive benefits in studies treating common mental health disorders. Investors, including legendary venture capitalist Peter Theil, are eyeing the burgeoning industry, while more than 20 psychedelics companies trade on the Canadian Stock Exchange.
Case in point, this week Australia became the first country to legalise prescriptions of psilocybin and MDMA as treatment options for patients suffering from depression or PTSD. MGC said it plans to expand its sales channels in Australia to avail of the new regulation, after previously appointing a CRO to run clinical trials within the country.
MGC's expertise in deriving treatments from plants puts it in a strong position to play a role in taking the growing body of scientific evidence behind the use of psilocybin and other psychedelic compounds from the lab into the marketplace.
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