MGC Pharmaceuticals (ASX:MXC) has received a 50 per cent increase in orders from two of its distribution partners, following a strong second quarter for its non-pharmaceutical business units.
Medicinal cannabis distributors Health House International and Cannvalate, with which MGC Pharma has signed distribution agreements, have placed purchase orders for the company's pharmaceutical products worth around $300,000.
Earlier this year, MGC split its business into two divisions: research and development and seed-to-pharmacy manufacturing. It told the market recently that it had banked over half a million dollars in revenue from its non-pharma unit.
Roby Zomer, co-founder and managing director at MGC Pharma, said the increased interest was a testament to his company's products.
"The quality and affordability of MGC Pharma's products ensure doctors remain confident when prescribing to patients and reflects strong immediate demand from the market.
"As Investors can most likely tell from the recent volume of material news flow, this is a busy and exciting time for the company as we rapidly grow and advance our strategy of becoming a leading international medical cannabis pharmaceutical company."
– Roby Zomer, co-founder and managing director at MGC Pharma
Clinical trials ahead of schedule
The company's research and development unit is also kicking goals, with its Phase II clinical trial testing its drug CogniCann's efficacy in treating patients with dementia and Alzheimer's, recruiting patients well ahead of schedule.
"This unanticipated level of demand to participate demonstrates the considerable interest in medical cannabis and a growing awareness of the medical benefits it can have," Zomer said.
"The volume of applications has meant that the recruitment process will not take as long as originally anticipated and will result in a considerable time saving for the completion of the study which we now look to complete in Q2 2020, significantly ahead of schedule."
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