Medicinal cannabis and its expansive set of applications continue to encroach upon commercial markets with MGC Pharmaceuticals (ASX: MXC) launching yet another cannabidiol-based product into world markets — the second of three products it intends to market globally via various online channels.
As it stands, regulation of cannabis is highly varied around the world, depending on the specific country as well as state.
Australian legislation prevents cannabis from being marketed without restrictions both medicinally or for recreational purposes. However, various products such as cosmetics and non-psychoactive supplements are now legal in the country with many medicinal cannabis companies now making their way to the ASX with commercial intentions.
Through its European subsidiary MGC Derma, MGC Pharmaceuticals has today launched its latest cannabidiol (CBD) based Herbal Replenish cream within its Derma Plus collection.
The move further shows that cannabis and hemp-based medicines are slowly coming back into use on a mass scale around the world.
In January this year, MGC Pharmaceuticals’ CBD Herbal Repair cream was the first product to be launched as part of its growing Derma Plus range, developed for treating dry, sensitive and flaky skin.
The cream was the second skincare product containing CBD compounds launched in 2018. One of its prime sales channels is a global online cosmetics store, Cult Beauty.
According to MGC Pharmaceuticals, its products are dermatologically tested, research-backed and specifically designed to stimulate skin regeneration via natural means.
The company claims its Derma Plus range includes proprietary CBD compounds extracted from the cannabis plant produced by the MGC Botanic division.
An independent dermatological study in Europe in 2017 found that these compounds deliver strong improvements across a range of skin conditions.
This study independently assessed the cream on 24 volunteers over a 30-day period concluding that 71% of patients found improvement with their dry skin symptoms, 65% reported improvement with flaky skin and 86% had improvement with itchy skin symptoms.
Crucially, 92% of patients said they would continue using the tested cream after the conclusion of the study. One of the study’s key findings was that CBD herbal replenish cream provides improved skin appearance, smoothness and replenishment, reduction of dry and flaking skin and improvement in appearance of red, inflamed and sensitive skin.
“We’re excited with our MGC Derma, the cosmetics subsidiary, progress and its Derma Plus products have now launched and are available to its base of global customers, for sale where legally permitted,” said Mr Roby Zomer, co-founder and chief executive officer of MGC Pharmaceuticals.
“MGC Derma Plus is a premium range designed to support the capacity for skin repair and prevent skin problems. The newest product will be a valuable addition to the range supporting our brand and increasing our presence within the CBD-infused skincare space,” Mr Zomer said.
Long-term commercial potential
Eventually, one of MGC Pharmaceuticals’ core markets will be Australia where it plans to supply at least A$1 million-worth of its CannEpil product to Australian consumers in its first year.
CannEpil contains the psychoactive element of cannabis [tetrahydrocannabinol (THC)] as opposed to CBD, which MGC is pursuing via other products in its arsenal.
As one potential application for its products, MGC Pharmaceuticals says that CannEpil is its first pharmaceutical-grade medical cannabis product targeting drug-resistant (refractory) epilepsy, which accounts for approximately 30% of the estimated 240,000 people diagnosed with epilepsy in Australia each year.
By mid-afternoon trade, MGC Pharmaceuticals’ share price was at A$0.075 – up 1.35%.