Shares in MGC Pharmaceuticals have almost doubled after signing a distribution agreement with Swiss PharmaCan to sell and distribute the group’s food supplement ArtemiC products.
The European based bio-pharma group signed an exclusive master supply and distribution agreement for ArtemiC™, a clinically tested food supplement which contains four natural based ingredients consisting of Artemisinin, Curcumin, Boswellia serrata, and Vitamin C.
MGC, which specialises in developing phytocannabinoid-derived medicines, said the deal represents ArtemiC™’s first sales as a food grade product and provides direct access to the large and rapidly growing markets that are still reporting high numbers of COVID-19 cases.
The agreement includes a minimum wholesale order quantity of 40,000 units of per quarter and an initial wholesale order of 10,000 has already been received from Swiss PharmaCan (SPC). This initial 10,000 unit order equates to a retail market value of US$0.85mto SPC.
The signing of the agreement follows the completion of a phase II double-blind, placebo-controlled clinical trial on 50 COVID-19 patients which was conducted to evaluate the safety and efficacy of the anti-inflammatory product, ArtemiC™ Rescue in December 2020.
Results from the trail highlighted that, inter alia, ArtemiC™ Rescue has a full safety and efficacy profile with no drug-adverse events, an ability to prevent deterioration of COVID-19 patients, as well as an ability to reduce symptoms and pain associated with the COVID-19.
The Company highlighted to investors that because the mechanism of action of ArtemiC™ Rescue is focused on the anti-inflammatory effect and reducing and prevention of cytokine storm, ‘a wide spectrum of potential indications will be considered for future development.’
Since its admission to the LSEwhich occurred on 9 February 2021, shares in MGC Pharmaceuticals have more than tripled. The Group raised £6.5m on its debut and then soared from an opening price of 1.475p per share to 4.25p leaving it with a market cap of over £75m. Following this morning’s announcement, the stock soared by 86.06% to 8.875p.
Under the terms of the distribution agreement, MGC Pharma will provide ArtemiC™ Rescue to Swiss PharmaCan to distribute as a food supplement worldwide, with the exception of certain excluded territories such as Thailand, Myanmar, Israel, CIS countries and Ukraine.
It will also provide an additional supplement called ArtemiC™ Support, specifically designed for daily consumption to support and maintain the strength of the human immune system.
The Company noted that it will be responsible for providing both ArtemiC™ Rescue and ArtemiC™ Support to SPC and has the ability to produce commercial scale batches of both products through its current manufacturing capacity and production facility in Slovenia.
SPC has subsequently secured agreement with Relay Medical Corp and Glow LifeTech Ltd. for exclusive North American and Caribbean sales and distribution rights for ArtmeiCTM, as well as ONASIS as a master distributor in the US and Central America under the exclusive distribution agreement, which the group said highlights the global demand for the product.
“The potential of ArtemiC™ is unlimited and a viable, natural solution in the current crisis, offering to so many people possible help and alleviation of their suffering,” commented Michel Fässler, CEO and Member of the Board of Swiss PharmaCan AG on the partnership.
MGC Pharmaceuticals became the first medicinal cannabis firm to be listed on the LSE when it joined London’s main market less than two weeks ago, floating at just 1.475p a share.
Follow News & Updates from MGC Pharmaceuticals here: