MGC Pharma PLC (LON:MXC, ASX:MXC) has signed a landmark deal with an American drug distributor worth a minimum US$24mln over the next three years.
The tie-up with AMC Holdings will see MGC supplying the phytomedicine products CannEpil, CogniCann and CimetrA for use in clinical trials.
An initial order for US$3mln will be placed five days after a national clinical trial number has been granted. The additional US$21mln will come in years two and three.
MGC co-founder and managing director, Roby Zomer, called the supply and distribution agreement an “important milestone” for the business.
“[It provides] MGC Pharma with a pipeline for strong revenue streams over the next three years, with the possibility of larger revenues to follow, and the opportunity to be at the forefront of phytomedicines in the USA.
“Additionally, the ability to add new sites to our current clinical trials programmes for CannEpil and CogniCann will greatly enhance the ongoing process for both.”
AMC was created by a group of leading US Healthcare and ex-federal government legislative and regulatory executives as a vehicle for the import and distribution of (plant-based) phytomedicines into the States.
MGC said its new partner will seek US regulatory approvals for all products they intend to distribute, including import licences.
AMC said it is intending to undertake clinical trials with the aim of securing Food & Drug Administration approval for this new breed of treatments.
MGC’s products, two of which are cannabis-derived, have the potential to tackle treatment-resistant epilepsy, dementia and Alzheimer's, and the symptoms of Covid.