Biopharma company MGC Pharmaceuticals has proposed to buy an Israeli clinical research business for $6 million in shares.
Biopharma company MGC Pharmaceuticals has proposed to buy an Israeli clinical research business for $6 million in shares.
MGC Pharma, which specialises in the production and development of phytocannabinoid-derived medicines, has offices in West Perth, London and Slovenia.
It is chaired by Perth-based co-founder Brett Mitchell.
The company said its proposed acquisition of MediCaNL would advance MCG Pharma’s ongoing clinical research initiatives and provide a more streamlined pathway towards commercialising its investigational medicinal products (IMP).
Clinical trials have been scheduled for three IMPs for this year: CannEpil, CogniCann, and CimetrA.
MediCaNL will design, manage and run the clinical trials, which MGC Pharma says will deliver significant and immediate cost savings to the company.
It will issue $6 million worth of shares to MediCaNL (comprising 30 per cent upon settlement and 70 per cent as deferred installments), with the deal subject to shareholder approval.
“The acquisition of MediCaNL is a strategically important moment and is crucial in being able to deliver on our ambitious plans for MGC Pharma,” MGC Pharma co-founder and managing director, Roby Zomer, said.
“By acquiring MediCaNL and bringing their services and expertise in-house, we not only cut significant costs from our forecasted clinical trial expenditure but also remove much of the red tape involved in the preclinical and clinical trial process.”
He said MediCaNL was led by some of the world’s most renowned doctors and scientists.
“They operate at the highest levels of quality and integrity, enabling MGC Pharma to establish and nurture stronger relationships with regulators in the years to come as we expand our suite of products and undergo more clinical trials,” Mr Zomer said.
MediCaNL, which generated about $1 million in revenue last year, currently has 11 clients and is working on 40 different projects and clinical trials.
Its managing director, Nadya Lisodover, will join MGC Pharma as chief research officer.
Shares in MGC Pharma closed up 3 per cent to trade at 6.2 cents.
