MGC Pharmaceuticals Ltd (ASX: MXC), which specialises in the production and development of phytocannabinoid-derived medicines, has recently achieved consecutive record week on week sales and revenue growth through September and October – exceeding $225,000 in the past four weeks alone.
CEO and Managing Director Roby Zomer said this is an outstanding result for the company, delivering on the key platforms of the business strategy and recently delivered very strong growth in the number of sales to now over 7000 units, up more than 65% since June 30, 2020.
This substantial increase is largely attributed to the recent formal launch of the company’s industry leading, affordable Mercury Pharma product line into the Australian and Brazilian markets, and the Australian Import Licence granted to the company in July which 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. MGC Pharma’s goal of providing high quality, affordable, phytocannabinoid- derived medicines, is being well received by both patients and doctors in the domestic market.
The 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 company is selling products through pharmacies and in Brazil, products now are directly provided to patients, this gives more control over the supply chain and allowing a further reduction in the final price to patients.
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 which puts the Company well on track to achieving record sales for the December quarter.
Over the past year, the company 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, which ensures the Company is well placed to deliver on our stated milestone objective of achieving 5,000 units per month/cashflow breakeven status in calendar CYH1 2021.
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,” Mr Zomer said.
“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.
“The company is continuously monitoring the COVID-19 situation in Slovenia with our team members continuing to make every effort to keep MGC Pharma moving forward due to their belief and commitment to what the company is doing in creating and manufacturing unique, and life-changing medicines. The Board thanks the Slovenian team for their commitment to the company and its patients during this time.”
