Why the MGC Pharmaceuticals (ASX:MXC) share price is jumping 8%

The MGC Pharmaceuticals (ASX:MXC) share price is surging after the company's drug was passed by two ethics committees. Here's the lowdown.

Brooke Cooper

Brooke has been a Motley Fool contributor since early 2021. She holds a Bachelor of Communication with specialisations in journalism and international studies from Charles Sturt University. Brooke aims to inform and excite Aussies keen to grow their wealth by investing in ASX companies. When not writing or researching, you'll likely find Brooke gallivanting around South East Queensland.

Published March 23, 2021 10:34 am AEDT

MGC Pharmaceuticals (ASX: MXC) shares are on the rise today after the company advised two ethics committees have passed its product for phase III clinical trials on COVID-19 patients. At the time of writing, the MGC Pharmaceuticals share price has surged 8% to 8.1 cents.

The pharmaceutical company's CimatrA is designed to target infections with inflammatory complications and has been passed for trials at two separate hospitals.

Let's look take a closer look at the company's news.

Young doctor raising arms in air with hands in fists celebrating a new development. — Image source: Getty Images

Phase III clinical trials

The MGC Pharmaceuticals share price is gaining ground today after the company stated its CimetrA™ product has been approved by two ethics committees. The trials will evaluate the drug's efficacy to treat hospitalised patients diagnosed with moderate COVID-19. It will also provide further data on the use of CimetrA as an investigational medicinal product (IMP).

The trials will take place in Israel, at the Rambam Health Care Campus and Nazareth Hospital EMMS. They are expected to begin next month and be completed by September. Full results are expected to be available in October 2021.

CimetrA has had a name change due to the trial. It was formerly known as ArtemiC™, a name which will live on as a food supplement.

The company states that CimetrA encapsulates technology that delivers active ingredients more effectively in higher concentrations, improving the bioavailability of natural active ingredients.

Commentary from management

Co-founder and managing director of MGC Pharmaceuticals Roby Zomer commented on the ethics committee's approval of CimatrA's stage III trial:

This is a very significant milestone for the Company being the first Phase III clinical trial of CimetrA™. ArtemiC™ has already proven to be a very successful product for the Company, and we look forward to replicating this with CimetrA as an IMP and improve outcomes for COVID-19 patients.

MGC Pharmaceuticals share price snapshot

The MGC Pharmaceuticals share price is having a fantastic year. Currently, the company's shares are up by 350% year to date.

MGC Pharmaceuticals has a market capitalisation of around $170 million, with approximately 2.2 billion shares outstanding.

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