MGC Pharma has signed a Binding Term Sheet with K.S. KIM International Ltd, a wholly-owned division of SK-Pharma Group, for the sales and distribution of ArtemiC in Israel, Russia, and other countries.
MGC Pharmaceuticals Ltd (ASX: MXC) a European based biopharma company that produces and develops phytocannabinoid-derived medicines, has just signed a binding term sheet with K.S. KIM International Ltd, a wholly-owned division of SK-Pharma Group for the sales and distribution of MGC's anti-inflammatory supplement, ArtemiC.
The Term Sheet stipulates that KS KIM will distribute ArtemiC throughout Israel, Russia, and the Commonwealth of Independent States and the countries of the Balkan region.
SK-Pharma Group is a vertically integrated pharma company structured for import, registration, distribution and marketing of generic and biosimilar pharmaceuticals, focused on generic and hybrid generic products in markets with high barriers to entry.
ArtemiC is currently designated as a supplement, which can be produced and sold in its current form with no new approvals or licenses required, currently being trialed in Israel to treat patients with COVID-19.
Through MGC Pharma's Slovenian facility, MGC can manufacture and produce ArtemiC and commence production once orders for the product begin.
The agreement is conditional on KS SIM fulfilling the following obligations:
- extensive market research by KS KIM to indicate demand and marketability of the Product
- due diligence and verification by KS KIM of the results delivered during the Trial indicating health
- promoting effects, to be completed within 30 days of receiving patient results from the Trial
- the entering into a Definitive Agreement, terms of which to be agreed, within 30 days of the completion of the due diligence and verification exercise
Meanwhile, MGC will work toward registering the drug, in addition to supplying it to KS SIM and developing patient information about ArtemiC. The Company confirms that currently there have been no completed toxicity or efficacy test results to verify ArtemiC safety for use in humans. The first safety and efficacy testing is being undertaken as part of the Phase II Clinical Trial currently being run in Israel.
We are extremely pleased to have our first term sheet in place for future sales and distribution of ArtemiC pending successful results from our Trial. Roby Zomer, Co-founder and Managing Director of MGC Pharma
Roby Zomer, the Co-founder and Managing Director of MGC Pharma, spoke on the agreement, stating: "We look forward to working with the SK-Pharma group and executive team, who are one of the largest distributors of medicines in Israel, Russia, the CIS and countries which are potentially very significant patient markets for the Product."
The CEO & Co-Founder of SK-Pharma Group, Shlomi Sadoun, stated that: "There are currently many challenges not only for individuals, but for the entire healthcare system for many countries. We recognise there could be a strong desire for products such as ArtemiC which are designed to target viral infections with inflammatory complications. We will follow the progress of the current Phase II clinical trial with interest and look forward to working with MGC Pharma to bring this product to market as soon as possible.
To learn more about MGC Pharma, visit the company HQ here.
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