This year, the MGC Derma division achieved several
milestones, signing a number of transformational supply
agreements supporting the strategy of creating a global
leading cannabidiol (CBD) cosmetic brand and launching
two new products into the Derma Plus collection. The MGC
Derma division is a 51:49 joint venture with well-credentialed
cosmetic manufacturer, Dr. M. Burstein Ltd, of which MGC
Pharmaceuticals owns 51% and holds management control.
Sales and Distribution Agreements
MXC signed two additional landmark sales and
distribution agreements during the year.
The rst with leading online beauty retailer Cult
Beauty, in February 2018 for the launch of 15 of
MGC’s cannabidiol cosmetic products and its Derma
Plus skin care range via Cult Beauty’s platform.
The launch was supported by strong customer
interest and sales were driven by a six month exclusive
marketing campaign led by Cult Beauty.
Under the second agreement with leading UK retailer
Harvey Nichols, 18 premium CBD products from the MGC
Derma and Derma Plus collections began sale at Harvey
Nichols Knightsbridge agship store on 29 June 2018. The
products are available to consumers in store and online
internationally, where legally permitted, and the launch was
supported by a marketing campaign led by Harvey Nichols.
Agreements with retail partners of this calibre provide
MGC Derma an excellent opportunity to immediately
increase its revenue and build strategic brand awareness
in the high-end retail skincare and cosmetics market.
Derma Plus Collection
During the period, MGC Derma launched two new
products into the Derma Plus collection.
The MGC Derma Plus CBD Herbal Replenish Cream, launched
in May 2018 specically developed for external skin care and
relief from inammatory skin conditions. A study independently
assessed the cream on 24 volunteers over a 30 day period
and concluded that the following calculated values presented
percentage improvement in skin condition on day 301; Dry
skin; 71% improvement, aking skin; 65% improvement,
itching skin; 86% improvement. Due to the results, 92% of
patients said they would continue using the tested cream.
The MGC Derma Plus CBD Herbal Repair Cream launched
in January provides daily relief of mild forms of psoriasis.
Independent tests to assess the impact on skin irritation,
itchiness, aking and severe dryness concluded that there
was a 69% improvement in the skin condition.
2 Psoriasis
symptoms were successfully treated through independent
tests completed to date include effective reduction of
skin irritation (by 69 % after 4 weeks of evaluation), and
treatment of skin itchiness, aking and severe dryness.
Review of Operations
1 Independent study sponsored by MGC Pharmaceuticals 2 Independent study sponsored by MGC Pharmaceuticals