A number of major milestones in the MGC Pharma division
were delivered in FY18 signicantly progressing the Company’s
Good Manufacturing Practice (GMP) Certicate and
During FY18, the MGC Pharma division achieved a major milestone
with full GMP certication and manufacturing licence awarded for
its European production and a manufacturing facility. Receipt of
this licence enables the commercial scale production of GMP-grade
medical cannabis pharmaceutical products and makes MXC one of
the most advanced facilities of its kind within Europe.
The Company’s facility in Slovenia was awarded GMP status
following the completion of production of its rst batch of drug-
resistant epilepsy medication – CannEpil™ in March 2018.
Malta - Awarded First Binding LOI & Designation of Land
Additionally, MXC was provided a Letter of Intent, granting approval
and a contract by Malta Enterprise Corporation to establish a state-
of-the-art full medical cannabis production and cultivation facility
in Malta and on the 4,000m2 of land designated to MXC by Malta
Enterprise in April 2018. MXC was the very rst to sign a binding
Letter of Intent with the Maltese Authorities for a cultivation
operation in March 2018.
This represents a major milestone in the process of obtaining a
formal contract to commence construction of the facility, which
will house a research hub and, once approved, a GMP certied
production and manufacturing facility. This supports MXC’s plan
of a fully vertically integrated commercial medical cannabis
seed to-pharma operation.
Supply & Distribution Agreements
The Company signed a supply agreement with specialist
Australian pharmaceutical distributor HL Pharma and a ve year
supply and distribution agreement with European pharmaceutical
distributor Lenis farmacevtika d.o.o. (Lenis) during the period.
Under the terms of the agreements, HL Pharma and Lenis will
distribute CannEpilTM and future MGC pharmaceutical products
to the European and Australian markets respectively.
The denitive agreements provide a clear pathway for the
delivery of the rst MXC medical cannabis products to Australian
and European epilepsy patients in particular and cements the
Company’s growth in those markets.
Mabsut sales continue to reach the obligations on the supply
agreement, with more products being developed by the MGC
R&D team for Mabsut’s future product range.
Research Projects Advanced with RMIT
MXC’s research and development teams received approval
from RMIT to construct a state-of-the-art facility on the
grounds of the University. Construction of the facility has
commenced and will house innovative research teams
focussing on breeding and pre-clinical research into
melanoma and prostate cancers using medicinal cannabis.
A systematic review of the use of cannabinoids to treat
melanoma and prostate cancers is currently underway
and early results have been encouraging.
During the nancial year, the Company also delivered the world’s
rst library focussed on researching, compiling and analysing
information on cannabinoids. Back end and user interface
development was completed in late 2017 and the team has now
been expanded with the addition of a further two specialist
PhD students in FY19 focussing on software development,
data retrieval and analytical solutions of the library.
The team are currently working to rene the original prototype
database by creating algorithms that can retrieve data
from public sources. Once completed, the library will be an
internationally recognised must-have tool in research into
medicinal cannabis safety, efcacy and the development of
personalised medications to drive better patient outcomes.
Further to this, discussions have signicantly advanced between
MXC, RMIT and a leading university, based in Israel, to establish
a Medicinal Cannabis Innovation Hub – a collaborative project
focussing on innovative research into the benets of cannabis as
a treatment. Researchers from leading universities worldwide
are expected to join to provide the centre with a vibrant and
collaborative atmosphere for developing innovative healthcare
solutions using medical cannabis.
The Pharma division also recently launched its Nutraceuticals
range targeted at retail customers. The new product line is
available for purchase at www.mgcnutraceuticals.com and is
made up of CBD and hemp-enhanced products. The premium
range of vegan and gluten-free products are engineered
for daily use containing high-grade phytocannabinoids,
proteins and vitamins, and is manufactured using CBD
from the plants grown in the Czech Republic.
The use of MXC’s Hemp proteins and cannabidiol across its other
divisions demonstrates the Company’s seed-to-sale, seed-to-
pharma operations and a fully vertically integrated supply chain.
Review of Operations