MGC Pharmaceuticals Ltd (ASX:MXC) (OTCMKTS:MGCLF) has signed a distribution agreement with leading UK medical cannabis provider, LYPHE Group Limited, to distribute its EU GMP cannabinoid medicines into the growing UK market for medical cannabis products.
The European-based biopharma company specialising in the production and development of phytocannabinoid-derived medicines, has already received an initial purchase order from LYPHE for 900 units of its affordable Mercury Pharma medicine line of products.
This is a direct shipment sale and not consignment stock, indicating the immediate patient demand from the LYPHE network.
Valuable commercial channel
The size of this first commercial order from LYPHE is the largest single order for MGC Pharmaceuticals into the UK to date.
It is strategically important for MGC Pharmaceuticals as it demonstrates a valuable commercial channel into the UK.
It also represents a key step towards its goal of serving growing patient demand for medicinal cannabis in the UK, which is forecast to be a large market for cannabinoid medicines.
This latest distribution agreement and new product order places MGC Pharmaceuticals in a strong position to achieve its stated target of 5,000 prescriptions per month by the first quarter of 2021.
LYPHE has extensive networks and has developed a patient-access and distribution ecosystem which positions the company as the leader in the UK’s rapidly expanding medicinal cannabis market.
Under the agreement, LYPHE will prescribe and dispense MGC’s Mercury Pharma medicinal cannabis products under LYPHE labels, to patients at its clinics, while reporting real-world anonymised data investigating efficacy, safety, quality of life, and patient-reported outcomes to MGC Pharmaceuticals.
There are no minimum order volumes under the distribution agreement executed.
LYPHE’s recent collaboration with Eaststone Ltd provides MGC Pharmaceuticals with access to one of the UK’s leaders in the supply of unlicensed medicines, currently serving over 700 physical pharmacy locations across the UK.
Based in the North West of England, Eaststone Ltd has strong connections to a network of independent pharmacies across the country making it the ideal partner for the LYPHE Group and MGC Pharmaceuticals' products.