Why the MGC Pharma (ASX:MXC) share price is zooming 13% higher today

The MGC Pharma (ASX: MXC) share price is up 13% in morning trade. We look at the latest from the ASX cannabis share.

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cannabis leaves on a rising line graph representing growth of ASX cannabis share price

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The MGC Pharmaceuticals Ltd (ASX: MXC) share price is off to the races today, up 13% at the time of writing.

The bio-pharma company produces and develops cannabis-derived medicines.

Let's take a look at the ASX cannabis share's latest product orders and revenue stream.

What did MGC Pharma report today?

The MGC Pharma share price is rocketing higher after the company reported it had completed the delivery of its first bulk order of ArtemiC Rescue in March to Swiss PharmaCan AG. The bulk order of its medicinal food supplement delivered approximately $425,000 in wholesale production revenue.

Swiss PharmaCan's purchase helped drive MGC Pharma to record quarterly sales revenue from its "proprietary phytomedicine product line". The ASX cannabis share reported it had generated roughly $880,000 of revenue during the March 2021 quarter.

The company also said March brought in its best single month's sales revenue so far from its pharmaceutical-grade phytomedicine products, driven by sales of its MP product line in Australia.

Words from the management

Commenting on the results, MGC Pharma global chief sales officer Nicole Godresse said:

In recent months we have seen rapid sales growth of our medical cannabis products as a direct result of our strategy to broaden our core prescriber base, diversify and expand our revenue streams and build additional strategic alliances. It is pleasing to see these strategies starting to translate into positive commercial outcomes and we expect this strong growth momentum to continue in 2021 and beyond.

MGC Pharma managing director Roby Zomer added:

We are very pleased to complete our first batch purchase order for ArtemiC Rescue under our Swiss PharmaCan agreement. This, combined with sales growth of other pharma grade cannabinoid products in key markets, has helped to deliver the strongest month and quarter of revenue growth for the company to date.

MGC Pharma's detailed March quarterly activity report is expected within the next few weeks.

MGC Pharma share price snapshot

Over the past 12 months, the MGC Pharma share price has gained 130%, handily outpacing the 35% gains posted by the All Ordinaries Index (ASX: XAO) over that same period.

With today's intraday gains factored in, the MGC Pharma share price is up 245% year-to-date.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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