Why this ASX cannabis share stormed higher today

The MGC Pharmaceuticals Ltd (ASX:MXC) share price has stormed higher after providing a positive update this morning…

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The MGC Pharmaceuticals Ltd (ASX: MXC) share price has pushed higher in morning trade following the release of a positive announcement.

At the time of writing the cannabis company's shares are up 2.5% to 4 cents.

Why is the MGC Pharma share price pushing higher?

This morning the company revealed that it has received Human Research Ethics Committee (HREC) approval to conduct a head-to-head clinical study on severe intractable epilepsy in collaboration with Cannabis Access Clinics and Epilepsy Action Australia.

According to the release, this is one of the first studies in the world to conduct a direct comparison assessing the efficacy of low-THC to 100% CBD products when treating severe intractable epilepsy.

The study will comprise 100 epilepsy patients treated with either CannEpil or MXP100, with the difference in efficacy analysed.

CannEpil is a high cannabidiol (CBD), low Tetrahydrocannabinol (THC) formula developed for the treatment of drug resistant epilepsy and is MGC Pharma's proprietary pharmaceutical grade phytocannabinoid derived medicine. It has been authorised for prescription as an Investigational Medicinal Product in both Australia and the United Kingdom, with regulatory approval underway in a number of other countries.

MXP100 is the company's CBD-only formula containing 100mg/mL of CBD and is available under Australia's Special Access Scheme.

MGC Pharma's co-founder and managing director, Roby Zomer, was delighted with the development.

He said: "This direct comparative head-to-head study on the use of phytocannabinoid derived products on the treatment of severe epilepsy is hoped to begin to demonstrate the increased efficacy of CannEpil, and is an example of MGC Pharma's commitment to being at the forefront of research and innovation in the sector, leading to increased patient access. As such, we are delighted to have received approval from the HREC which enables us to immediately start the study connecting patients in need with MGC Pharma's products and providing valuable information and data on the effectiveness of phytocannabinoid based treatments and epilepsy."

Once participant recruitment has commenced the study will proceed with data collection, data analysis, and data reporting. After which, the company expects the final report to be available within 24 months of commencement.

Elsewhere in the industry today, the Cann Global Ltd (ASX: CGB) share price has continued its rise and is up 14%. Its shares have been on a tear since announcing a deal with Costco Australia last week. And Althea Group Holdings Ltd (ASX: AGH) shares are down 1% on no news.

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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