MXC to widen product line into acne market
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MGC Pharma (ASX:MXC) is expanding into a market which is estimated to be worth $137 billion worldwide.
MXC told its shareholders this week that it was developing a psoriasis and acne dermatological product, based on cannabidoil (CBD) derived from cannabis plants.
MXC already has a line-up of cosmetic products with active ingredients derived from cannabis on the market, but this is a new area for the company.
It said the development of such a product would be a “substantial commercial opportunity” for the company, as it estimated the global skincare market at $137 billion.
It is likely, however, that this figure is a broad-based figure rather than a figure covering the acne, psoriasis, and seborrhoea market. Investors should always seek professional financial advice before investing.
MXC said that it had already received “favourable” microbiology results on an initial batch, which demonstrated the safety of the product when applied to skin.
It is now moving ahead to human trials of the new product line, with skin patch trials pencilled in for next month.
At the same time, it is applying for a European Cosmetic Product Notification approval which would allow it to sell the products in Europe.
MXC said the ability to access products in this line with CBD ingredients without a prescription was scant at best, meaning that it had a first-mover advantage in the marketplace.
“With tests of our CBD skin care range progressing, we are on track towards the release of a dermatologically tested product for the suffering of psoriasis, acne and seborrhoea conditions,” managing director Nativ Segev said.
“We believe this presents a tremendous commercial opportunity for the company and I look forward to presenting updates to the market as we make progress with our testing phases.”
With testing pencilled in for next month, MXC said it would be in a position to receive results in late 2016.
News of a potential new product line adds momentum for the company, which has received a string of regulatory approvals this year, with Europe, Canada and crucially the US FDA clearing its existing products for sale into the market.
MXC has a wide range of anti-aging cosmetic products on the market, where the active ingredient is CBD derived from cannabis.
It also has its eyes on pharmaceutical development, earlier this year entering into a research agreement with Sipnose to develop a medical cannabis derived treatment for acute epilepsy.
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