- MGC Pharmaceuticals (MXC) has signed a binding term sheet for the distribution of its ArtemiC supplement with SK-Pharma subsidiary, K.S. KIM.
- The agreement covers Israel, Russia and much of eastern Europe, including Ukraine and Serbia
- MGC is conducting a phase two clinical trial for ArtemiC, a phytocannabinoid designed to target viral infections with inflammatory complications
- If the product gains registration as a drug, it could have wide implications for its therapeutic applications and, accordingly, its market impact
- MGC Pharmaceuticals is down 3.8 per cent to 2.5 cents per share as at 11:50 am AEST.
MGC Pharmaceuticals (MXC) has signed a binding term sheet for the distribution of its ArtemiC supplement with SK-Pharma subsidiary, K.S. KIM.
The deal
The agreement covers Israel, Russia and much of eastern Europe, including Ukraine and Serbia.
The term sheet is dependent on the satisfaction of certain preconditions, including the completion of market research and due diligence by K.S. KIM, after which the parties will enter into a definitive agreement.
Upon completion of those terms, the product will be sold as a health supplement until such time as MGC Pharma can issue the pharmaceutical dossier and patient information leaflet required for the registration of the product as a drug.
MGC is already undertaking a phase two clinical trial in Israel for ArtemiC, a phytocannabinoid designed to target viral infections with inflammatory complications.
The trial will also test for the product’s safety and efficacy for use in humans.
Roby Zomer, Co-Founder and Managing Director of MGC Pharma, says getting the deal signed is a great first step.
“We are extremely pleased to have our first term sheet in place for future sales and distribution of ArtemiC pending successful results from our trial,” Roby said.
“We look forward to working with the SK-Pharma group and executive team, who are one of the largest distributors of medicines in Israel, Russia, the CIS and countries which are potentially very significant patient markets for the product,” he added.
If the product does indeed gain registration as a drug, it could have wide implications for its therapeutic applications and, accordingly, its market impact.
Next steps
MGC already has the infrastructure required to manufacture and supply the product to the zone covered by K.S. KIM.
All required approvals are in place to allow for the production and distribution of ArtemiC as a supplement once orders are received.
If ArtemiC does prove safe and efficacious, it could find a very ready market waiting for it.
Shlomi Sadoun, CEO and Co-Founder of SK-Pharma Group, says there are great opportunities on offer for the partnership.
“There are currently many challenges not only for individuals, but for the entire healthcare system for many countries,” Shlomi explained.
“We recognise there could be a strong desire for products such as ArtemiC which are designed to target viral infections with inflammatory complications.
Shlomi Sadoun,CEO & Co Founder of SK-Pharma Group
“We will follow the progress of the current Phase II clinical trial with interest and look forward to working with MGC Pharma to bring this product to market as soon as possible,” he added.
While both companies dance around the language a little in speaking about ArtemiC’s prospects, most people are likely aware of a certain viral infection with inflammatory complications that is sweeping the globe at the moment.
If the results of the phase two trial and regulatory approvals are received in a timely fashion, there could well be great opportunities for a prosperous partnership.
MGC Pharmaceuticals is down 3.8 per cent to 2.5 cents per share as at 11:50 am AEST.