The MGC Pharmaceuticals Ltd (ASX: MXC) share price smoked the market today. This comes after the company provided investors with a positive update regarding its clinically tested nutritional supplement, ArtemiC Rescue.
At the closing bell, the cannabis company's shares finished up 19.51% at 4.9 cents apiece.
What did MGC Pharma announce?
Investors are pushing up the MGC Pharmaceuticals share price following the news the company has expanded its sales base.
In the release, MGC Pharma advised it has secured an import approval permit for ArtemiC Rescue by Indian regulators.
This enables the importation, distribution, marketing, and sales of ArtemiC Rescue in India, generating the company a new revenue stream.
A small trial batch had been previously sent for proof of concept with its local partner, Carino Water Solutions & Energy.
The sample passed all the required regulatory hurdles and was granted a Food Safety and Standards Authority of India licence. Additionally, it also cleared Indian Customs' import requirements, resulting in the approval for the sale of ArtemiC Rescue across India.
Gaining authorisation to the Indian market is a milestone given it has the world's second-largest population.
ArtemiC Rescue has been clinically demonstrated to alleviate moderate symptoms for patients suffering from COVID-19.
MGC Pharma noted the approvals are a major step forward in the pathway for global sales of ArtemiC Rescue.
Furthermore, the company stated it is making progress on the long-term development of its investigational medicinal product, CimetrA.
An application for Emergency Use Authorisation in India as well as other national regulatory and medical agencies are underway. This includes seeking approval from the United States Food and Drug Administration (FDA) to treat patients in the United States.
What did management say?
Commenting on the news driving up the MGC Pharmaceuticals share price, co-founder and managing director Roby Zomer said:
We are proud of achieving the milestone of being granted Indian import and distribution approval for of ArtemiC Rescue, and are pleased to have the opportunity to alleviate the symptoms of COVID-19 in one of the largest populated countries in the world.
Whilst the virus continues to mutate, as we have seen with Omicron, MGC Pharma is well placed to offer a solution on a worldwide scale to ease the pressure on national healthcare systems and aid the economic recovery of jurisdictions who have been widely affected by the pandemic.
About the MGC Pharma share price
In the past 12 months, the MGC Pharmaceuticals share price has accelerated by almost 90%. However, most of those gains came in the early part of 2021, before the company's shares moved sideways.
On valuation grounds, MGC Pharma has a market capitalisation of roughly $132.23 million, with more than 2.70 billion shares outstanding.
