European firm MGC Pharmaceuticals has signed a $24 million deal for the supply of its cannabis-based products to the US.
The EU based bio-pharma company, MGC Pharmaceuticals, which specialises in the production and development of phytocannabinoid-derived medicines, has signed a binding US Market Supply and Distribution Agreement (US Supply Agreement) with US company, AMC Holdings Inc (AMC).
The deal will see minimum orders of US$24 million for MGC products including CannEpil, CogniCann and CimetrA over the initial three year period.
This is the first dedicated supply agreement executed by MGC Pharma for the supply of MGC Pharma pharmaceutical products into the USA, the largest healthcare market in the world.
The agreement is also an important step in expediting the clinical trials process for both CannEpil and CogniCann, as well as providing access to these medicines to more patients.
CannEpil is a phytocannabinoid derived IMP, designed to treat drug resistant Epilepsy with a high CBD, low THC formula.
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The Phase IIb clinical trial for CannEpil has regulatory approval at the Schneider Children’s Medical Hospital in Israel and will focus on the safety and efficacy of CannEpil as an add-on treatment for children and adolescents with treatment resistant epilepsy.
CogniCann is a formulation of phytocannabinoids that has been developed with the specific aim of treating the symptoms of Dementia and Alzheimer’s. It currently undergoing a Phase II clinical trial at the University of Notre Dame in Perth, Western Australia.
An important milestone
Roby Zomer, co-founder and managing director of MGC Pharma, commented: “This is an important milestone agreement for MGC Pharma, as it provides MGC access to the largest healthcare market in the world. We look forward to working with our new partners at AMC and utilising their expertise and network to widen patient access to MGC’s phytomedicine products.
This agreement provides MGC Pharma with a pipeline for strong revenue streams over the next three years, with the possibility of larger revenues to follow, and the opportunity to be at the forefront of phytomedicines in the USA. Additionally, the ability to add new sites to our current clinical trials programmes for CannEpil and CogniCann will greatly enhance the ongoing process for both.
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“I personally would like to thank all at MGC Pharma and AMC who have made this possible and look forward to sharing our progress with investors in due course.”
Brent Yessin, AMC’s general counsel and president of AMC Florida, agreed: “We believe that disease management of intractable conditions, like refractory epilepsy and dementia, as well as the recent spike in Covid-19 around the US, is driving healthcare providers and researchers to seek alternatives to existing drugs or protocols.
“MGC’s track record developing botanical or bio-pharmaceutical solutions as alternatives to existing medications, many of which have negative side effects affecting patients’ quality of life, made this an exciting collaboration for AMC. We look forward to introducing MGC’s products to our national medical community.”