The MGC Pharmaceuticals Ltd (ASX: MXC) share price is gaining today, up 2.5% in late morning trade.
MGC Pharmaceuticals (MGC Pharma) is a biopharma company that produces and develops phytocannabinoid-derived medicines. This morning, it announced an increase in the initial purchase order of one of its patented products.
At the time of writing, the MGC Pharmaceuticals share price has retreated slightly, trading at 8 cents, up 1.25%.
Let's take a closer look at the announcement and what it means for MGC Pharma shares.
What did MGC Pharma report?
The MGC Pharma share price is gaining today. In particular, this comes after the company reported an 85% increase in the original purchase order for its medicinal food supplement ArtemiC Rescue from Swiss PharmaCan AG (SPC).
Additionally, shares zoomed 31% higher on 19 February following the initial announcement of the purchase order from SPC. SPC agreed to distribute ArtemiC Rescue worldwide for at least 3 years. The distribution will be focused on countries with high levels of COVID-19.
With the increased order, MGC Pharma reports the deal will result in at least $425,000 of wholesale revenue.
Management commentary
Commenting on the increased order, Roby Zomer, Managing Director of MGC Pharma said:
We are pleased to have extended our agreement with Swiss PharmaCan AG for ArtemiC Rescue. This further agreement will provide more people access to the natural therapeutic benefits of the supplement and ease suffering following the successful Phase II trial results in December.
ArtemiC Rescue is an anti-inflammatory product. It can be taken without any shown drug adverse side effects. Importantly, with direct applications in treating the coronavirus.
According to MGC Pharma, it's been shown to reduce the severity of pain and other symptoms. Particularly, in patients infected with COVID-19. Additionally, it can be used in the community alongside hospital use. The company said it has the "ability to prevent deterioration of COVID-19 patients and achieve faster clinical improvement".
Share price snapshot
Since this time last year, MGC Pharma shares have gained 173%. That compares to an 8% gain on the All Ordinaries Index (ASX: XAO).
Year-to-date the MGC Pharma share price is up 310%.
