MGC is a long-term investment which we believe justifies itself as we enter new and lucrative segments, and as the projects, we are engaging in start generating significant revenue.
The Cannabis-based medicine sector continues to grow and is rapidly picking up pace across North America, Canada, Europe, and Australia. In 2016, the Cannabis market was estimated by New Frontier to be worth US$7.2bn globally and growing at a compound annual rate of 17%. Cannabis-based medicine sales alone are projected to increase from $4.7 billion in 2016 to $13.3 billion in 2020.
MGC Pharma is well-positioned in this growing market and has established a diversified business, with operations spanning the entire value chain. In Europe, the Company has secured some distribution deals including an off-take agreement for its GMP certified active pharmaceutical ingredients (APIs) currently being manufactured at its European extraction facility.
Furthermore, the Company is advancing its research and development activities. It is at the forefront of the Cannabis-based medicine industry. Through its strategic partnerships with leading research organizations in the region, it is advancing many vital initiatives and research in the Cannabis-based medicine space.
The Company Research division, ranging from botanical to clinical to technological developments, under the constant motivation of existing on the cutting edge of the intersection of our products and today’s pharmaceutical industry. MGC has a clear vision: to have registered Phyto based medicines available in pharmacies and to patients in need, in the most cost-effective, consistent and efficient manner possible. To get there, MGC is constantly innovating every step of its product chain, from improving genetics to ensure better yield per square meter, nanotechnologies to enhance bioavailability of the medicines we create, and of course, clinical studies to locate the accurate cannabinoids and their mechanism to treat specific indications. MGC’s research arm can be broken down to operations in four central Geographical Locations: Australia, Slovenia, Czech Republic, and Malta.
To maximize the value of our research into commercialization, MGC has centralized its principal operations in Europe, while holding several operational branches in other strategic territories. As a Bio-Pharma company, MGC holds an EU License to produce Non-Sterile schedule 2 medicines, which include both cannabinoids and the THC compound. This license is one of a few in the world that can generate and to compound medicine based on Phyto-cannabinoids. As far as production capabilities, MGC ‘s agenda is to control the entire production chain to provide cost-effective medicine. Additionally, globally, MGC also holds several cultivation sites and cultivation opportunities, giving the company a “Seed to Medicine” core strategy as a Bio-Pharma company with the goal of providing highly cost-effective Phytomedicines.
The strategy for market growth is anticipating that it will be mainly across Europe, as MGC Pharmaceuticals see the change in attitude and legislation sweeping across the continent, including the Czech Republic, Slovenia, Greece, Macedonia, and Germany.
The secondary market; Australia, where we are both involved in encouraging legislation and creating an environment that promotes the growth of the industry and finding more avenues for our products.
In Australia, we are seeing a fast track in changes of regulation for the Cannabis-based medicine industry, where MGC aims to provide affordable medication and products that impact user’s lives positively.
Additionally, MGC is constantly monitoring developments in other markets and examining possibilities for joint ventures, collaborations, and even acquisitions when the situations are correct.