MGC Pharmaceuticals Ltd (LSE:MXC, OTC:MGCLF, FRA:H5O, ASX:MXC) has been the top riser in the whole of the London Stock Exchange on Thursday, after investors got excited about a US$24mln deal with AMC Holdings.
The tie-up with the American drug distributor will see MGC supplying the phytomedicine products CannEpil, CogniCann and CimetrA for use in clinical trials.
Roby Zomer, MGC co-founder and managing director, said that the deal provides a pipeline for strong revenue streams over the next three years.
The Australian group is harnessing the power of plants to address unmet medical needs, known in science as phytomedicine. The total addressable market for all of its programmes is worth a whopping £60bn, according to analysts at Proactive.
CannEpil and CogniCann are being studied for treatment-resistant epilepsy, dementia and Alzheimer's and are both at mid-stage clinical trials.
They are MP Line cannabinoids, so they are derived from cannabis. The family includes tetrahydrocannabinol (THC) which is an intoxicating compound but which also has valuable medical properties, and also cannabidiol (CBD) which is non-intoxicating.
The main market for cannabinoids is Australia, as they are prescribed for several indications including nausea caused by chemotherapy, cancer pain, palliative care and anorexia associated with chronic illness among others.
MGC is also supplying patients in Brazil and work is being done to enter the UK, where the medicinal cannabis market is expected to boom in the short term.
CimetrA, instead, is based on food supplement ArtemiC, which contains four natural active ingredients: Artemisinin, Curcumin, Boswellia serrata. ArtemiC is already being sold in Australia.
CimetrA is its ‘pharma version’ and is at the final stage of trials, targeting the cytokine storm – a common symptom in severe COVID-19 – and other autoimmune indications.
The group is very active in the phytomedicine space and has research collaborations with academic institutions such as RMIT University, Epilepsy Action Australia, Lenis and the Medicinal Cannabis Council.
Shares climbed 67% to 3.47p on Thursday afternoon.