MGC Pharmaceuticals Ltd (ASX:MXC) added 31.37% to its share price after its CannEpil medical cannabis product received an Australian Therapeutic Goods Administration approval to be prescribed for reimbursement to people with drug-resistant epilepsy.
The European company expects to make its reimbursable cannabis product available to the Australian market in December 2018 through pharmaceutical distributor HL Pharma.
A ‘validation’ of strategy
MGC Pharmaceuticals co-founder and managing director Roby Zomer said: “We are delighted to announce the availability of our first product CannEpil for supply under the Authorised Prescriber Scheme.
“This is a significant achievement for us and we are very excited at the prospect of ramping up production to a commercial scale and bringing CannEpil to Australia.
“This important step validates MXC’s seed-to-pharma strategy with the start of commercial revenues from our first investigational medicinal product offering.”
The company’s core business strategy is to develop and supply high-quality cannabinoid-based pharmaceutical products to medical markets in Europe, North America and Australasia.
MGC Pharmaceuticals tipped today it expects $1 million of annualised revenue from an initial base of 100 patients.
Earlier this year the company raised $5 million to build a fully-licensed medical cannabis facility in Malta to manufacture the clinically-tested therapeutic.
The company is one of a handful of companies to be awarded a full medical cannabis production and cultivation contract by the small European Union member.
A ‘milestone’ for people with epilepsy
Epilepsy Action Australia chief executive officer Carol Ireland welcomed the adding of CannEpil to Australia’s Authorised Prescriber Scheme.
Ireland said: “This is a significant milestone for epilepsy patients and other patient communities.
“It is another important step in improving access to potentially life-changing medications, and part of a global trend to recognise the valid medical benefits of cannabis.”
Ireland pointed to a global shift in focus towards patient rights and said today’s development was a “sign that patient needs and wants are (being) heard and respected.”
MGC Pharmaceuticals’ shares gained up to 1.6, or 31.37% today, to close at 6.7 cents. The company’s securities regularly changed hands for 7 cents during the trading day, frequently resting up 37.26%.