MGC Pharmaceuticals Ltd (ASX:MXC) (OTCMKTS:MGCLF) (FRA:H5O) delivered consecutive record week-on-week sales and revenue growth through September and October - exceeding A$225,000 in the past four weeks alone.
The European based bio-pharma company specialising in the production and development of phytocannabinoid-derived medicines delivered on the key platforms of the business strategy and saw very strong growth in the number of sales, up more than 65% to over 7,000 units, since June 30, 2020.
While the domestic order pipeline is strong through until at least the end of 2020, there are also increasing orders from both Brazil and the UK, placing the company well on track to achieving record sales for the December quarter.
Lower overall cost base
MGC Pharma chief executive and managing director Roby Zomer said: “It is increasingly brought to our attention that one of the major inhibiting factors for patient access to medicinal cannabis in Australia, and globally, is the high price point that comes with high-quality medications that are not covered by insurance.
“We are constantly streamlining our operations in order to lower our overall cost base, to ensure we can meet our obligation to increase patient access to affordable, high-quality medicinal cannabis products.
“We are seeing the results of this strategy through the increase in patient demand and sales volumes."
Formal launch of Mercury Pharma product line
The sharp rise has been largely attributed to the recent formal launch of its industry-leading, affordable Mercury Pharma product line into the Australian and Brazilian markets, and the Australian Import Licence granted to the company in July.
This licence allows for the direct importation of any MGC Pharma Schedule 4 and Schedule 8 medicinal cannabis products into Australia.
The recent strong growth in prescribed units and sales has largely been in the Australian market where demand is exceeding the company’s expectations.
Expansion of the Mercury Pharma product line to include the entire range, combined with a more affordable price point for the products, has led a strong increase in demand through numerous channels including Australia’s leading medicinal cannabis distributor, Cannvalate.
In Australia, the products are being sold through pharmacies while in Brazil, they are directly provided to patients, which provides a further reduction in the final price to patients.
On target for key monthly milestone
Over the year, the company has executed a number of strategic initiatives such as new distribution agreements into key markets and the launch of a new range of affordable, high-quality products – Mercury Pharma.
The results of these initiatives are gaining significant traction in the market, including the recent world-first direct-to-patient delivery of high THC medicine in Brazil.
All these ensure the company is well-placed to deliver on its stated milestone objective of achieving 5,000 units per month/cashflow breakeven status in the first half of 2021.
TGA CBD scheduling changes
The company said its growing commercial presence in Australia put it in a unique position to take advantage of the upcoming changes announced by the Therapeutic Goods Administration (TGA) on September 9 - placing low-dose CBD on Schedule 3 - Pharmacist Only Medicine of the SUSMP (The Poisons Standard).
The company has launched a clinical program seeking advice from regulatory and clinical advisors, and the TGA to finalise a drug development plan and launch the required clinical research in early 2021.
MGC Pharma is one of only a handful of companies in Australia with the capacity to achieve a successful registration of a Schedule 3 product on the Australian Register of Therapeutic Goods.
An approval would secure the company as a market leader while providing access to significant revenues, it added.
No impact from COVID-19 in Slovenia
MGC Pharma said that the 30-day epidemic declared in Slovenia did not affect current operations as it had approval from the government to continue production due to the pharmaceutical nature of the business.
It has strict protocols in place to protect the health and well-being of its team, which operates in two independent shifts, thereby managing infection risk to enable the continuity of production.