The MGC Pharmaceuticals (ASX:MXC) share price is on a roll today. Here's why

The MGC Pharmaceuticals (ASX: MXC) share price is up 3.4% after the company shared news of a $1 million order.

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The MGC Pharmaceuticals Ltd (ASX: MXC) share price is having a great day as the company shared news of a $1 million order.

At its intraday high, the MGC Pharmaceuticals share price was 6.7% higher than yesterday's close, but it's since retreated.

The company's share price is trading at 6.1 cents, a 3.39% gain, at the time of writing.

Let's take a closer look at the latest news from the phytocannabinoid- and plant-focused pharmaceutical company.

Million-dollar baby

MGC Pharmaceuticals' newest purchase order comes from a European producer and distributor, Swiss PharmaCan AG.

Swiss PharmaCan has ordered around €640,000 ($995,000) worth of the company's ArtemiC Rescue, a food supplement that contains 4 plant-based ingredients ­– artemisinin, curcumin, boswellia serrata, and vitamin C.

This is its second order for ArtemiC Rescue after the first helped boost MGC Pharmaceuticals' quarter-on-quarter growth to a record high.

MGC Pharmaceutical says it has the ability to produce commercial-scale batches of ArtemiC Rescue at its Slovenian facility. 

The company has an agreement with Swiss PharmaCan, under which the European company must order at least 40,000 united of ArtemiC Rescue per quarter. The order announced today has seen it meet its quota for the current quarter.

Commentary from management

MGC Pharmaceuticals' co-founder and managing director Roby Zomer commented on the purchase order, saying:

Receiving a second order on such a large scale from Swiss PharmaCan demonstrates the increasing demand for our product ArtemiC Rescue, and its associated benefits.

Our team in Slovenia has been working tirelessly to ramp up production to ensure rapid deployment of this order, and any subsequent orders that may be received.

MGC Pharmaceuticals share price snapshot

The MGC Pharmaceuticals share price is going gangbusters this year, up 205% year to date with today's gains included. It's also up 103% over the last 12 months.

The company has a market capitalisation of around $134 million, with approximately 2.2 billion shares outstanding.

Motley Fool contributor Brooke Cooper 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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