The agreement will see the company's products rolled out to more than 700 pharmacies—along with LYPHE's clinical distribution network—throughout the UK.
The Australian biopharma company, MGC Pharmaceuticals (ASX:MXC), has announced a distribution agreement with the LYPHE Group that will see its products imported into the highly lucrative UK market, which could be worth as much €8.8 billion by 2028.
The deal is being viewed as a major win for MGC, as it represents the largest single order of the company's EU GMP products to date.
LYPHE is the industry leader in the UK's rapidly expanding medicinal cannabis market and Astral Health's parent company which currently writes over half of all new prescriptions for medicinal cannabis in the UK. LYPHE have extensive networks and has developed a patient-access and distribution ecosystem which positions the company as the leader in the UK's rapidly expanding medicinal cannabis market. Official Statement from MGC Pharma
In fact, the company has already received its first direct shipment order as part of the new arrangement—for an initial 900 units of its Mercury Pharma line—which demonstrates that there is considerable pre-existing demand for MGC Pharma's medicinal cannabis products.
Under the agreement, LYPHE will prescribe and dispense MGC Pharma medicinal cannabis products—although they will be relabelled under the LYPHE brand—to patients in its clinical network.
At the same time, the company will also report "real-world anonymised data" to MGC Pharma, concerning their products efficacy, safety, quality of life, and patient-reported outcomes.
There are also no minimum order volumes under the agreement, which will see MGC gain access to more than 700 physical pharmacy locations throughout the UK.
Additionally, LYPHE is also the parent company of Astral Health, which is currently responsible for more than half of all new medicinal cannabis prescriptions in the UK, which should allow MGC to considerably expand its market share.
As a result, the MGC Pharma has confirmed that it will be in a strong position to reach its previously stated target of 5,000 prescriptions per month by as early as Q1 2021.
The market has also responded positively to the deal's announcement, causing shares in MGC Pharma to spike in value by more than 4.17% by close of trading.
Disclaimer: Past performance is not an indicator of future performance.
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