ASX-listed MGC Pharmaceuticals has secured an all-important import licence from the Australian Office of Drug Control, paving the way for the medicinal cannabis supplier to source products direct from its European production facilities. The approval is expected to result in significant import cost savings for the company and also allow MGC Pharma to expand the range of available products from its Mercury Pharma brand.
The granting of the import licence is a milestone achievement for the company, who credits the development with helping advance its strategy towards becoming a vertically integrated bio-pharma company with global distribution capability.
According to MGC Pharma, the licence significantly reduces its logistics and handling fees by allowing its Australian operations to directly import schedule 4-prescription only medication and schedule 8-controlled drug products into the country from its Slovenian manufacturing operations.
It will now bulk import its medicinal cannabis products for storage, distribution, and sale across Australia through its commercial distribution partners. At a later date MGC intends to expand its importation activities to a wider range of products including those in its Mercury Pharma brand.
The company’s medicinal cannabis products are available both in Australia and internationally in New Zealand, the UK, Ireland, and Brazil. A recent company presentation also pointed to new markets potentially opening up in the EU and Israel.
The granting of the import licence in Australia is very significant for our Australian operations. With the logistics savings, we are able to become more cost-effective and are also able to expand our product offering to our Australian customers.
The company also said it will now look to increase its sales team and access to clinics as it seeks to ramp up its operations on the back of the granting of the import license.
In other news, MGC is currently conducting human clinical trials in Israel and India that involve the testing of its natural supplement, “ArtemiC” on patients infected with COVID-19 as a possible treatment for the virus.
The company has also been chosen to be part of a global Coronavirus task force set up by the World Health Organisation that will look at various cures and vaccines being developed around the world
News of the AODC’s granting of an import licence to MGC Pharma provided a shot in the arm for the company’s share price, which spiked more than 15 per cent on opening trades.