ASX-listed MGC Pharmaceuticals has taken another positive step in its foray into the global medical marijuana market, inking a major distribution deal to supply its products across Slovenia, Croatia and Bosnia.
MGC said this week that the distribution deal with leading Slovenian laboratory equipment and pharmaceutical supplier, Mikro+Polo, would see Mikro+Polo distribute MGC’s Phytocannabinoids Active Pharmaceutical Ingredients or “API’s” to all Mikro+Polo customers across the three European countries.
APIs are a cannabis-derived substance used in the finished product for medical marijuana based treatments and clinical trials. Under the deal, API raw materials will be sourced from MGC’s growing facilities in Europe then processed at its extraction facility before being wholesaled to Mikro+Polo.
The APIs would then be supplied to Mikro+Polo at an agreed price based on the underlying market price for APIs, which is currently over €60/gram.
MGC managing director Nativ Segev said: “As our first European distribution agreement for our APIs, this agreement with Mikro+Polo not only sets the Company up to become the exclusive provider of cannabis APIs across Slovenia, Croatia and Bosnia, but also sets a model that can be replicated for distributing our API product across the rest of Europe.
“Mikro+Polo is a fantastic partner to be working with. In addition to being a well-established and trust worthy brand in Slovenia, they have incredible reach into the Government sector which is a key target customer market for us.”
MGC sees its API production and distribution is a strategic cornerstone for the company as more countries legislate to allow the importation of APIs for the treatment of epilepsy and the development of new medicines.
The distribution deal with Mikro+Polo comes after MGC earlier this month was awarded a full European licence to grow and cultivate cannabis at its growing facilities in Slovenia, lifting MGC shares almost 10 per cent at the time.
The company is developing a library of medicinal cannabis in partnership with the Royal Institute of Melbourne and already has a five-year research partnership with Panax Pharma in the Czech Republic.
