MXC to widen product line into acne market

Published at Aug 25, 2016, in Biotech

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.

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!