First revenues for MGC Pharmaceuticals
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MGC Pharmaceuticals (ASX:MXC) has pulled off its first sales deal in Europe, linked with a Czech distributor expected to bring in $500,000 of revenue for the company this year.
The company has signed a deal with Czech Medical Herbs (CMH), which has agreed to distribute a line of 15 cosmetic products in the MXC stable.
The cosmetic products contain cannabidiol and have been developed in joint venture with cosmetic manufacturer Dr M Burstein Ltd.
While the deal is centred in the Czechoslovakian market, MXC told its shareholders in a note today that it was investigating similar moves into Poland, Hungary, and the United States.
The order from CMH was for $500,000 worth, which has a potential retail value of $1.5 million.
“The sales of our first range of CBD cosmetic products marks a major milestone for MGC Pharmaceuticals,” MXC managing director Nativ Segev said.
“It signifies our first revenue generation and our ability to bring to market a range of high quality CBD based products. Through this new distribution agreement with CMH, we have been able to fast-track the sales process of our initial range of 15 CBD based cosmetic products.”
In other news, MGC Pharmaceuticals said that a dedicated retail site for its cosmetic products would go live “in the coming weeks”, adding another route to revenue for the pharmaceutical play.
Earlier this month the company unveiled its push into the world of pharmaceuticals, unveiling an R&D agreement with Israeli-based Sipnose to develop a CBD-based medicine for sufferers of epilepsy.
The retail sales will play a vital role in generating revenue for the company while it is in the lab with Sipnose, with the pharmaceutical space seen as the main game for MXC.
MXC has also sold active pharmaceutical ingredients derived from cannabis to other pharmaceutical companies.
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