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 Medical Cannabis 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%. Medical Cannabis sales alone are projected to grow 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 a number of distribution deals including an off-take agreement for its GMP certified active pharmaceutical ingredients (APIs) currently being manufactured at its European extraction facility.
MGC Pharma’s new derma product range DermaPlus is soon to be launched, following positive clinical results. Distribution agreements are already in place across Europe. They will join the existing derma product range that is already generating sales throughout Australia, EU and North America.
Furthermore, the Company is advancing its research and development activities. It is at the forefront of the Medical Cannabis industry in Australia. Through its strategic partnerships with leading research organisations in the region, it is advancing a number of important initiatives and research in the Medical Cannabis space.
The Company Innovation division, the leading engine of the BioPharma research in Neurological and Oncological symptoms, is commencing its Phase II clinical study in epilepsy, initiating pre-clinical research in Cancer and Cancer side effects, and establishing the International Cannabis Medicine Library together with RMIT. Its genetics and breeding research operations at the Biotechnical Academy of Slovenia and the Institute of Experimental Botany in Czech Republic are underway and it will soon provide new IPs and Clinical research material for the company’s needs.
MGC Pharma is a multinational BioPharma company with multiple revenue streams that capture the entire Medical Cannabis value chain from cultivation through to distribution. Significant uplift is expected as the Company builds up to full production capacity and begins supplying its off-take agreement partners, ahead of the launch of further derma products.
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 is Australia, where we are both involved in encouraging legislation and creating an environment that encourages growing the industry and finding more avenues for our products.
In Australia we are seeing a fast track in changes of regulation for the medical Cannabis industry, where MGC aims to provide affordable medication and products that impact users 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.
Our Innovation Division is focused on our medical product pipeline, and is our largest division. This division focuses on products that emerge from our supply line. Firstly, neutraceuticals, which will be able to provide the additional needs and requirements that our body needs on a daily basis to improve our immune system, detoxify our bodies and enhance wellness. Secondly, our extracts, at various levels of purity, and with the ability to extract various phytocannabinoids and terpenes to the level of Active Pharmaceutical Ingredient.
The Innovation division focuses on three areas:
- Neurological disorders which includes MGC proprietary formulations for epilepsy (CannEpil)
- Oncological care and treatment which includes our entry into clinical and preclinical research with RMIT.
- Autoimmune diseases and the various anti-inflammatory benefits the product has on the body.
Derma is our skincare and anti-ageing line for day-to-day use. We are currently working on a new line of dermatological products called DermaPlus, which is already presenting impressive results from clinical studies, and will be launched into the market in the next quarter.
The Botanic division is focused on the development of new genetics, which concentrates on specific medical indications. This division is where all of our GMP raw material for our clinical studies is created for patient treatment worldwide.