Medical marijuana company MGC Pharma has been given the green light to sell its brand new cannabis-based dermatological range of skin care products in the European Union.
The ASX-listed company said on Monday it had secured approval from the European Cosmetics Products Notifications Portal for its cannabidiol-derived skin treatment line following recent successful completion of safety tests, such as microbiology and skin patch tests on human volunteers.
MGC, a company with Perth executive connections, is a unique player in the expanding global medical cannabis industry.
It has a traditional medical research program and a cosmetics line, branded “MGC Derma” and it will now add dermatological skin care products as a third string to its bow and a second immediate revenue source.
The company recently received its first European sales order for its cosmetics line, signing a distribution deal worth $500,000 in gross sales per year with a Czech based company.
MGC hopes its dermatological range, based on a non-psychoactive component of cannabis that targets conditions like acne, psoriasis and seborrhoea, will provide it with a lucrative second revenue stream in 2017, describing the products on this week as a “key priority for the company”.
MGC plans to market the derma line via its MGC Derma online shop and European retail outlets following a final three-month clinical efficacy test at a Slovenian dermatological clinic. That test is due to finish at the end of this month.
MGC co-founder and managing director Nativ Segev said: “Receiving European CPNP approval for our new dermatological products is another crucial step forward on the path to generating significant revenues from our MGC Derma Skin Care product range. This is potentially a huge global market that we intend to start selling into this year … We are now commencing the clinical trials to validate the efficacy of the products."
“Not only will these tests building on the safety evidence we already have for the products to start commercial sales, but they will help us shape a strong efficacy-based consumer marketing program that communicates the benefits of our cannabidiol dermatological products for skin care.”
MGC’s medical research arm was recently buoyed after executing a new binding heads of agreement to acquire Czech-based Panax Pharma, a well connected player in the Czech Republic’s medicinal cannabis industry.
