MGC Pharmaceuticals Ltd (ASX:MXC) (OTCMKTS:MGCLF) (FRA:H5O) is expected to benefit from the United Nations’ (UN) decision to remove cannabis and its derivatives from schedule IV following recommendations from the World Health Organisation (WHO).
Cannabis and its derivativities will now be contained under Schedule I of the 1961 UN Single Convention on Narcotic Drugs.
The removal of cannabis and its derivatives from schedule IV means that the UN accepts the opinion of the WHO that cannabis is not “liable to produce ill-effects” on the scale of other drugs in Schedule IV, and that cannabis has significant potential therapeutic value.
This removal, alongside other legislative changes announced this year, further demonstrates the rapidly changing political perspectives on cannabis and the use of cannabis for medicinal purposes which will make operating in the sector less challenging, more efficient and more profitable.
“Effectively validates the global medicinal phytocannabinoid market”
MGC Pharma co-founder and managing director Roby Zomer said: “The vote from the UN is very significant as it effectively validates the global medicinal phytocannabinoid market where MGC Pharma has been established and operating for a number of years.
“The company’s first mover advantage means it will be very well positioned to benefit from this change moving forward.”
Impact on MGC Pharma
The removal of cannabis and its derivatives as a schedule IV drug will have a significant positive impact on MGC Pharma’s operations by removing the red-tape which currently creates geographical limitations on movement of MGC Pharma’s products and will further facilitate global research into medicinal phytocannabinoid derived products.
This will also clear the pathway for more commercial opportunities for MGC Pharma delivering its current and broader range of affordable Mercury Pharma products to new markets in the future.
This change also demonstrates a clear separation in categorisation of pharmaceutical, medical, recreational and wellness-oriented products and ensures the industry's ability to research and develop in earnest without fear of haphazard applications of non-relevant drug laws.
MGC Pharma now has significantly more opportunities to work with international governments, researchers and patients to provide more affordable products.
The company's flagship phytomedicines will have far fewer obstacles to overcome as they work towards market authorisation, registration and patient access.