MGC Pharmaceuticals Ltd (ASX:MXC) (OTCMKTS:MGCLF) has been granted an Import Licence by the Australian Office of Drug Control (ODC) which allows it to import any of its Schedule 4 and Schedule 8 medicinal cannabis products into Australia.
The Import Licence follows the recent granting of an Indent Wholesale Licence by the Western Australian Department of Health.
It provides an opportunity for MXC’s Australian operations to directly import Schedule-4 - prescription only medication and Schedule-8 - controlled drugs, medicinal cannabis product into Australia from its European production facility.
Decreases handling fees
The company believes the granting of this licence ‘significantly’ decreases logistics and handling fees and supports its business model of providing high-quality affordable medicinal cannabis products to patients.
This process, which was previously facilitated by Cannvalate and Health House International, also progresses the company towards becoming a vertically integrated bio-pharma company with global operations.
Shares have been as much as 30% higher in early trade to 2.8 cents.
Licence "very significant"
Co-founder and managing director Roby Zamer said: “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.”
MGC Pharma will now bulk import its medicinal cannabis products for storage, distribution and sale across Australia through its commercial channel partners.
In due course, MXC will expand importation to encompass a wider range of products including products from its Mercury Pharma brand.
The company continues to work with Cannvalate and other commercial partners to distribute its proprietary products across the Australian market at very affordable pricing points.
MGC’s next step is to expand its sales team and clinic access, increasing retail profit margins alongside its distribution channels.