The MGC Pharmaceuticals Ltd (ASX: MXC) share price zoomed up more than 35% higher today off the back of a positive announcement released to the market yesterday.
In a strong finish at the close of trade today, the MCG Pharma share price was trading at 12.5 cents, up 31.58%.
What's fuelling the MGC Pharma share price?
MGC Pharma advised the market yesterday that it had entered a sale and distribution agreement for its anti-inflammatory medicinal cannabis product.
According to the release, MGC has entered an exclusive, 3-year agreement with European nutraceuticals producer Swiss PharmaCan AG (SPC).
The deal will see SPC exclusively sell and distribute MGC's food supplement ArtemiC product line. In addition, SPC will be responsible for obtaining all relevant permits, approvals, certificates and licences and customs clearances under the distribution deal.
The agreement also includes a minimum wholesale order quantity to MGC of 40,000 units of ArtmiC Rescue per quarter. The initial distribution deal is worth $1.1 million, with SPC taking delivery of 10,000 units of ArtemiC.
MGC Pharma says the agreement will allow the company direct access to large and rapidly growing markets.
ArtemiC completes COVID-19 trial
The distribution agreement with SPC follows MGC's completion of the Phase 2 clinical trial for ArtemiC Rescue.
In the trial results, ArtemiC Rescue demonstrated the ability to prevent deterioration in patients with COVID-19 and achieve faster clinical improvements.
The trial, conducted on 50 COVID-19 patients in India and Israel, also resulted in reduced symptoms and pain associated with the virus.
The clinically-tested food supplement contains four natural-based ingredients: Artemisinin, Boswellia serrata, curcumin and vitamin C.
How has the MGC Pharma share price responded?
Including today's price action, the MGC Pharma share price has surged more than 78% since the announcement was released early yesterday.
Overall, it's been a significant month for the company, which has seen the MGC Pharma share price surge more than 350% since the start of February.
The company made headlines earlier this month after listing on the London Stock Exchange (LSE).
In addition, MGC Pharma completed a successful capital raise of £6.5 million through an oversubscribed share placement. The company advised that the capital raise proceeds were being used to meet costs associated with clinical trials for its ArtemiC and CannEpil products.
