MGC Pharmaceutical Ltd said it received the full US$750,00 cash deposit from AMC Holdings Inc under the companies’ three-year US$24mln US supply and distribution deal.
The cash deposit is pre-payment on AMC’s recent US$3mln purchase order for CimetrA, MGC’s curcumin and Boswellia compound, which has shown early promise in treating the symptoms of Coronavirus (COVID-19).
AMC is committed to pay the US$2.25mln in cash or secured trade credit facility when it receives the first CimetrA shipment.
MGC also announced that AMC has engaged Morgan Lewis & Bockius, a leading US pharmaceutical sector law firm, to seek FDA approval for CimetrA.
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MGC Pharma managing director and CEO Roby Zomer commented: "The receipt of the full US$750,000 cash deposit from AMC Holdings is further validation of our future partnership to supply MGC Pharma products into the largest market in the world.
“This is an exciting partnership in the US, with a highly credentialed group, for MGC Pharma and its investors, as we look to take CimetrA through the regulatory approval processes in both the USA and India, two of the largest pharmaceutical markets in the world.
“We believe CimetrA has the ability to be a gamechanger for the treatment of COVID-19 globally, and look forward to providing CimetrA to patients, at an affordable price."
Shares rose 2.8% to 2.55p in late morning trade.