MGC Pharmaceuticals Ltd (LSE:MXC, OTC:MGCLF, FRA:H5O, ASX:MXC) delivered a year of ‘significant’ business growth for FY2021, with strong phytocannabinoid sales totalling around A$2 million - an increase of 69% from the previous year.
In its annual report for the period ending June 30, 2021, sales of ArtemiC™ amounted to around A$705,000 with the balance relating to revenues derived from consulting services provided by wholly-owned subsidiaries MedicaNL and Medicinal Cannabis Clinics (MCC).
There was also considerable progress in advancing clinical trials, which is evidenced with A$1.9 million incurred on R&D activities.
Pharma operations
Throughout FY21, MGC Pharma experienced strong growth in its phytocannabinoid product sales.
As at June 30, the company sold a total of 12,457 prescribed units of its standardised affordable cannabinoid medicines across Australia, UK & Brazil, a record for the company.
Post the financial year-end, MGC Pharma implemented new commercial initiatives aimed at enhancing sales growth in its key Australian market.
This included entering a Contract Sales Team Agreement with A Menarini Australia Pty Ltd - who will provide eight additional sales personnel to the team as well as the launch of a new form factor, MGC THC 20 whole flower.
MGC Pharma expects to see strong revenue growth of its phytocannabinoid products in the coming months on the back of these commercial changes, particularly within the Australian market.
Phytocannabinoid sales by product for FY21.
Maltese GMP facility
In Q2 FY2021, MGC Pharmaceuticals was awarded a A$4.95 million (€3.1 million) grant from Malta Enterprise to renovate and extend the company’s existing Clinical Research Organisation facility in Malta.
This will include a fully functioning GMP certified manufacturing facility for ArtemiC™.
Building work kicked off in December 2020 and has made good progress with construction expected to be completed in October 2021.
The commissioning of the Malta facility to full operational capacity will be completed in 2022 and will enable the company to immediately increase ArtemiC™ production volumes and reduce logistics costs via the Malta facility due to its optimal geographic location and shipping access.
CannEpil® made available for patients in Ireland
MGC Pharma’s proprietary cannabis-derived epilepsy Investigational Medicinal Product (IMP) CannEpil® was added to the Republic of Ireland’s Health Service Executive (HSE), following the incorporation of the Medical Cannabis Access Program (MCAP) into the HSE’s Service Plan.
CannEpil® will be available free of charge to patients under the Long‐Term Illness Scheme, GMS (Medical Card) Scheme, and the Drugs Payment Scheme on a named patient basis – marking an important step in providing refractory epilepsy patients access to CannEpil® across Europe and improving their quality of life.
Outlook
The company anticipates significant growth in the coming year, both in its sales of existing product and in its clinical pipeline.
Through its existing relationships and through new distribution and access agreements in existing and new geographies, MGC will be increasing sales as well as facilitating awareness and clinical activities supporting the company’s product lines enroute to Market Authorization.
MGC has taken significant step stowards becoming a global biopharma company with a focus on phytocannabinoid and plant‐based treatments, available to patient populations in need around the world.
Its research and development agenda, coupled with the company's robust clinical platform sets it at the forefront of this significant emerging segment of the global pharmaceutical market.
MGC intends to ensure its position over the coming years by continually bringing products to markets with full market authorisation and in keeping with global regulations, offering cost-effective treatments to patients with underserved indications the world over.