MGC Pharma's joint venture with BRASILINVEST Global Business and Development will see the company's products imported into the Brazilian and Latin American markets.
The European based "Seed to Medicine" bio-pharma company, MGC Pharmaceuticals (ASX:MXC), announced today that it has signed on to a binding term sheet with a Brazilian business services provider to establish a Joint Venture company.
The joint venture will see the company partner with BRASILINVEST, to develop dedicated retail sales and marketing channels for MGC Pharma's products in key Brazil and Latin American markets.
Under the terms of the deal, the joint venture company will
be incorporated with 50/50 ownership structure, with MGC's first product
shipment to Brazil expected in early December.
BrasilInvest's established network is expected to be used to promote MGC's products to medical professionals—and potential distribution partners—across key markets in the region. This is great news, as it will significantly assist the joint venture company's efforts to launch a sales distribution network in Brazil and other Latin American markets.
The new JV Co will be able to register MGC Pharma's pharmaceutical products in Brazil which will then, leveraging on BrasilInvest's established reputation and contact base in Brazil, be marketed into the wider Latin American market. We look forward to implementing our seed-to-medicine strategy in this new marketplace and hope to replicate the success we have experienced in both the Australian and European markets thus far.MGC Pharma Co-Founder and Managing Director, Roby Zomer
Distribution in Brazil will be conducted in accordance with MGC Pharma's existing agreement with ONIX Empreendimentos e Participações, and an initial import permit has already been received from Anvisa, the country's National Health Surveillance Agency.
The deal represents another huge win for the company, as the Latin American medicinal cannabis market is expected to reach a valuation of $5.8 billion by 2028.
The company's management believe that the agreement will produce significant "material economic benefit" for MGC, by facilitating new sales and revenues pipelines for its phytocannabinoid based medicines.
This is understandable, as the deal adds another major sales stream for the company in the Brazilian and Latin American market, outside of its existing wholesale distribution channel.
According to the Co-Founder and Managing Director of MGC Pharma, Roby Zomer, the binding agreement "with BrasilInvest represents a key milestone towards establishing MGC Pharma as a leading international producer of phytocannabinoid based medicines."
"The Brazil and Latin American markets for the use of cannabis-based medicines is developing rapidly and emerging as a key region in the global marketplace; this JV Co will provide MGC Pharma with a strategic position to capitalise upon this and become a key supplier into this growing market, with a well-respected business partner who has a very extensive and successful track record in commercial ventures in Brazil, and Latin America.
"Capturing a 50% share of the retail margin for our Company in the huge market of Brazil, and other Latin American markets under our JV Co, is a very commercially significant development for MXC," Zomer said.
Initial patients have already been issued prescriptions for MGC Pharma products, while the first order submitted through group distributer ONIX is set to be despatched to Brazil in the coming weeks.
To learn more about MGC Pharma visit their Company HQ here.
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Disclaimer: past performance is not an indicator of future performance
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