ASX-listed MGC Pharma has secured an all-important import licence from the Australian Office of Drug Control paving the way for the medicinal cannabis supplier to source products direct from its European production facilities. The approval is expected to result in significant import cost savings for the company and also allow MGC Pharma to expand the range of available products from its Mercury Pharma brand.
The granting of the import licence is a milestone achievement for the company, which credits the development with helping advance its strategy towards becoming a vertically integrated bio-pharma company with global distribution capability.
According to MGC Pharma, the licence significantly reduces its logistics and handling fees by allowing its Australian operations to directly import schedule 4-prescription only medication and schedule 8-controlled drug products into the country from its Slovenian manufacturing operations.
It will now bulk import its medicinal cannabis products for storage, distribution, and sale across Australia through its commercial distribution partners. At a later date MGC Pharma intends on expanding importation to a wider range of products including from its Mercury Pharma brand.
The company’s medicinal cannabis products are available both in Australia and internationally, including New Zealand, the UK, Ireland, and Brazil. A recent company presentation also pointed to new markets opening up in the EU and Israel.
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.
Importantly for Australian patients, the new licence arrangement means they will get high-quality medicinal cannabis products via its commercial distribution network at very affordable prices, according to MGC Pharma, which added it now plans to increase its sales team and access to clinics.
Also noteworthy, as part of a global coronavirus task force set up by the World Health Organisation, the company is currently conducting human clinical trials in Israel and India that involve the testing of its natural supplement “ArtemiC” on patients infected with COVID-19 as a possible treatment for the virus.
News of the AODC’s granting of an import licence to MGC Pharma provided a shot in the arm for the company’s share price, which spiked more than 15 per cent on opening trades.
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