MGC Pharmaceuticals opens up European market

Published at May 11, 2016, in Biotech

MGC Pharmaceuticals (ASX:MXC) has just opened up the European market thanks to regulatory approvals.

It has received word from the European Commission’s Comestic Products Notification Portal that it has approval to start selling its cosmetic products derived from cannabidiol compounds found in cannabis in Europe.

The CPCP is the European equivalent of the US FDA or Australia’s Therapeutic Goods Association.

The approval clears the way for European consumers to start buying MXC’s goods direct – including a moisturising day cream, an anti-aging mask, and a dark circles eye serum.

It also opens the door for its European distribution partner, Czhechia-based Czech Medical Herbs to start commercialisation of the product line.

MXC has also told its shareholders that it has lodged formal applications with the US FDA and the TGA to do the same – saying that outcomes on the applications are expected “in the coming months”.

It estimates the global cosmetics market to be worth more than $460 billion.

Managing director Nativ Segev said the approval would provide a step-change for the company.

“It allows the company to commence dedicated marketing and sales efforts for its cosmetics products throughout the EU and furthering our move towards material revenue generation, as part of the large global cosmetics market,” he said.

It has previously estimated that the sales deal with Czech Medical Herbs could be worth about $500,000.

In March it unveiled a push into the pharmaceuticals R&D space, signing an agreement with Israel-based Sipnose to develop a CBD-based medicine for sufferers of epilepsy.

The retail revenue will provide a base to work from while MXC pursues a product development breakthrough, which is expected to be the main game for the company.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Thanks for subscribing!