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MGC Pharmaceuticals (ASX:MXC) has announced an update to the market of its business operations that refines the focus of its commercialisation strategy.

MXC has told shareholders that its operations are now focused on two core divisions; research and development (R&D) of medical cannabis products and ‘seed-to-pharmacy’ manufacturing.

Research & Development

The R&D division encompasses MXC’s research projects, education initiatives and partnerships focused on medical cannabis.

Educational projects


Its educational projects include CannaHub, the creation of a research hub to bring together innovation and technology within medical cannabis.

The hub is in collaboration with the Royal Melbourne Institute of Technology (RMIT) and the Hebrew University of Jerusalem (HUJ).

MXC has also partnered with Epilepsy Action Australia to launch the C4E education platform – an online education platform for medical cannabis and epilepsy.

Clinical trial activity


Its clinical trial activity also falls into the R&D division. This includes its clinical trial in dementia and Alzheimer’s disease using CogniCann at the University of Norte Dame and its CannEpil clinical trial for epilepsy with the University of Ljubljana, Slovenia.

Recruitment for its Phase 2B CogniCann clinical trial has begun and MXC says the trial remains on track to begin in 2019.

MXC’s genetics development will also come under the R&D division and this includes the development of its proprietary genetic cannabis strain MXC-10, that contains industry high levels of THC.

Read more: What do MXC’s high concentration cannabis strains mean?

MXC says the primary function of the R&D division “is to ensure MXC remains at the forefront of pharmaceutical innovation of cannabis for medicinal use.”

The division is spearheaded by a team of highly experienced medical practitioners working alongside scientific departments and genetics teams from world leading universities.

Product pipeline


MXC will focus on three distinct sectors that include neurological disorders, oncology and treatment side effects and inflammatory autoimmune diseases.

Its CogniCann and CannEpil products fall under neurological disorders, while Tetrinol is the first drug in development for use in the treatment of cancer side effects such as cachexia and acute nausea.

It is also developing new medicine for the treatment of melanoma and prostate cancer as part of a pre-clinical programme with CannaHub.

Also utilising data from CannaHub, MXC is targeting inflammatory autoimmune conditions.

Its first products are InCann, a BiActive microspheres capsule used to treat inflammatory bowel disease (IBD) Crohn’s disease and colitis, and TopiCann™, an anti-inflammatory topical cream to treat eczema and inflamed skin.

It’s partnership with the Royal Melbourne Institute of Technology (RMIT) is also on track with RMIT receiving approval from the Office of Drug Control (ODC) to possess and handle cannabis for research purposes.

Manufacturing ‘Seed-to-pharmacy’

The manufacturing division, dubbed ‘seed-to-pharmacy’ is focused on “end-to-end cannabis production” and will capitalise on the intellectual property (IP) from its R&D division.

The division is tasked with everything from cultivation, extraction and processing of the product and supply chain management.

Extraction and product manufacturing


MXC says it has centralised its European operations and confirmed for investors that its Slovenian extraction facility “has been awarded an EU licence to produce non-sterile schedule two medicines, which includes all cannabinoids.”

MXC is one of only a handful of companies to have been awarded the licence.

Over in Malta, MXC will construct a medical cannabis facility that will include a GMP certified production facility and a fully equipped cultivation site.

It has submitted the architectural plans to the relevant authorities and is now awaiting approval.
The company says that because Malta is “home to one of the largest sea-ports in the Mediterranean” it provides an ideal central location for operations and logistics within Europe and as such the facility “will become its primary operation site”



MXC’s distribution activities, that cover Europe, the United Kingdom, MENA countries, Australia and New Zealand, will fall into its seed-to-pharmacy division.

It says, “maintaining strong relationships with leading pharmaceutical distributors globally provides MXC with the ability to leverage these relationships and expand its operations, distribution and footprint globally.”

Why now?

The splitting out of the two divisions comes following the completion of the sale of its derma division to CannaGlobal earlier this year.

Roby Zomer, Co-founder and Managing Director, MGC Pharmaceuticals says that the “recent sale of MGC Derma to CannaGlobal has enabled us to position ourselves as a pure pharmaceutical company as we direct our research and focus into our two core divisions.”

“Having secured an EU licence to produce non-sterile schedule two medicines and the consolidation of our European activities in Malta, we are in a strong position to grow and develop our Seed-to-Pharmacy manufacturing division and make excellent progress in 2019.”


This content is produced by Star Investing in commercial partnership with MGC Pharmaceuticals. This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.