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Why cannabis company MGC Pharmaceuticals surged 13% higher today

ASX Pot Stocks
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The MGC Pharmaceuticals Ltd (ASX: MXC) share price has been a strong performer on Wednesday.

The cannabis company’s shares were up as much as 13% to 6 cents at one stage. At the time of writing they are 7.5% higher at 5.7 cents.

Why is the MGC Pharmaceuticals share price charging higher?

Investors have been buying the European-based cannabinoid-derived medicines developer’s shares after it announced new facts on the pre-clinical research which highlighted the positive impact of using specific cannabinoid formulations in the treatment of glioblastoma.

Glioblastoma is the most aggressive and so far therapeutically resistant primary brain tumour.

The company believes that the research, which was conducted in collaboration with the National Institute of Biology and University Medical Centre Ljubljana, is a major scientific breakthrough in respect to successfully applying cannabinoid compounds on cancerous cells.

The release explains that the report confirms that cannabinoid preparations can successfully inhibit tumour viability and also cause the significant fraction of glioblastoma cells to die.

The company’s co-founder and managing director, Roby Zomer, believes this development could be a major breakthrough for the company and patients.

He said: “This research is a major breakthrough for the treatment of tumours with cannabinoid-based formulations and has wider implications on different cancer treatments. The full research report successfully shows that compounded cannabinoid formulations can have a positive effect on the treatment of glioblastoma, reducing the growth of a tumour cell and killing the cancerous stem cells. We are now creating a cannabinoid compound matrix which we can utilise to target a wider range of cancers and significantly advance our R&D capabilities.”

Elsewhere in the cannabis industry today, the Auscann Group Holdings Ltd (ASX: AC8) share price has drifted lower. This appears to be a case of profit-taking after a sizeable gain this week.

And the Althea Group Holdings Ltd (ASX: AGH) share price failed to return from its trading halt this morning. It requested another day to prepare its capital raising and acquisition.

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Returns as of 6th October 2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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