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MXC to enter Australia with five-pronged attack

Published 04-APR-2016 16:25 P.M.


2 minute read

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MGC Pharmaceuticals (ASX:MXC) has flagged its intention on entering the Australian market, which was recently tipped by the University of Sydney as providing a $150 million opportunity.

The medical cannabis player has thus far focused its efforts on Europe and Israel through research and development, and sales of cosmetic products derived from cannabidiol – a key chemical component of cannabis.

It now, however, has its sights set on the Australian market which has opened up following a series of positive legislative changes allowing for cannabis to be grown for medical purposes.

These changes include things such as downgrading cannabis from the prohibited list to a lower class of medical drug which contains things such as morphine.

MXC told its shareholders today that it would take a five-pronged approach to its Australian entry, the foremost of which is the establishment of a “state-of-the-art” growing facility.

It is currently working on obtaining a license to do so from the Australian government, with the company planning to grow medical cannabis for Australian cannabis – while also flagging providing medical cannabis for export markets.

MXC is also intending to find partners for a clinical trial program and research further research collaborations, the University of Sydney study being one such result.

It also flagged a further lobbying effort, while saying it is looking at the Australian market for its cosmetic range.

MXC recently bagged a sales deal in Europe, and its first revenues from its cosmetic line.

Managing director Nativ Segev said Australia was emerging as a real opportunity for the company.

“The medical cannabis market in Australia is emerging as one of the most exciting opportunities for Australian patients, material growers and the pharmaceutical industry,” Segev said.

“As Australia places itself on the global cannabis map, MGC Pharmaceuticals plans to play a crucial leadership role in the development of the domestic industry.”

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