MGC Pharmaceuticals Enters the Peruvian Market with Anden Bio Naturals Distribution Agreement

The deal will see MGC Pharma's product line distributed throughout Peru by early 2020, with the Bolivian Market expected to follow.

The European based 'Seed to Medicine' bio-pharma company, MGC Pharmaceuticals Ltd (ASX: MXC), announced today that it has secured a distribution agreement with the Peruvian medical products distributor, Anden Bio Naturals S.A., for the exclusive distribution and commercialisation of its phytocannabinoid-derived medicines in Peru and Bolivia.

The deal is currently set to run for a period of 5 years and will assist in solidifying MGC Pharma's footprint in the Latin America market, bolstering its recent Brazilian joint venture with distributor BrazilInvest.

Anden is currently in the process of obtaining the necessary licenses and approvals needed to commence importation activities—making it the first company to legally import cannabis-based medicine into Peru—with an expected start date in Q1 2020.

By adding Peru and Bolivia to the list of countries where our phytocannabinoid-derived medicines are available we've hit the ground running in this new decade. Partnering with Anden, which is the first to legally import phytocannabinoid based medicines in Peru, gives MGC Pharma access to their network of over 7,500 pharmacies, private medical clinics and an oncological private insurance system. MGC Pharma Co-Founder and Managing Director, Roby Zomer

Under the agreement MGC Pharma products are expected to be distributed throughout Anden's wide-ranging healthcare network, which includes pharmacies, private medical clinics and an oncological private insurance system with over 1 million affiliated patients.

This will provide the company with considerable exposure to the Peruvian and Bolivian market, while also simultaneously positioning MGC Pharma for coverage by public and private insurance providers.

As part of the deal the company will also develop a white label line of nutraceuticals for exclusive commercialization by Anden, providing that they do not directly compete with MGC Pharma's existing product range.

The Co-Founder and Managing Director of MGC Pharma, Roby Zomer, stated that the addition of Peru and Bolivia to its distribution pipeline has allowed the company to, "hit the ground running in this new decade."

"This closely follows our entry to the Latin American market in November 2019, when MGC Pharma's products became available in Brazil and in December receiving formal approval for the sale of CannEpil in Ireland. We've rapidly diversified our global reach, with plans in place to add further jurisdictions this year, which is to have immediate positive impact on our cashflows."

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"We look forward to updating the market on further key milestones towards establishing MGC Pharma as a leading international producer and supplier of phytocannabinoid based medicines," Zomer said

According to the agreement, Anden's exclusive rights to distribute MGC Pharma products within the Peruvian and Bolivian market will be subject to specific predefined sales targets, which will be decided on at quarterly intervals.

As a result, the company's executive board believes the agreement will begin generating material economic benefit to MGC Pharma in the near term, as it works towards establishing itself as an international producer of cannabis-derived medicine.

Additionally, Peru has an estimated population of 32 million—along with thousands of patients who already use medicinal cannabis—substantially widening MGC's potential addressable market.

The Co-Founder and CEO of Anden Bio Naturals, Curt Schwarz, was also enthusiastic about the agreement, saying that MGC Pharma's phytocannabinoid-derived medicine will help thousands of Peruvian patients who are desperately in need of treatment.

"We firmly believe that cannabis medications have the potential of improving the quality of life of millions of people worldwide. The decree estimates that a minimum of 7,596 patients in Peru are in urgent need of access to medical cannabis and notes that "sufficient scientific evidence" exists for its use for several medical conditions," Schwarz said.

"We value the efforts that MGC Pharma has made to put science first and investing in the right pathways that will get medical cannabis recognized as a legitimate (and better) alternative to conventional drugs."

"Anden Naturals is very excited to work with a company of the calibre of MGC Pharma."

While the agreement is currently set to run for 5 years—unless the companies elect to extend it—MGC Pharma has retained the right to terminate the agreement upon the cessation of manufacturing activities by Anden, so long as three-months prior written notice has been provided.

To learn more about MGC Pharma visit their Company HQ here

Disclaimer: Past performance is not an indicator of future performance.

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Hugo Gray
Hugo Gray

Hugo Gray is a Melbourne-based journalist with a body of work that covers a diverse range of topics, including immigration law, sex technology, and now the rapidly expanding cannabis industry.

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