MGC Pharma signs agreement for entry of cannabinoid medicines into new markets

PERTH: MGC Pharmaceuticals Ltd has signed a distribution agreement with Anden Bio Naturals S.A, a leading Peruvian medical products distributor, for the exclusive distribution and commercialisation of MGC Pharma phytocannabinoid-derived medicines in Peru and Bolivia for a term of five years.

The Agreement helps to solidify MGC Pharma’s footprint in Latin America, following the execution of its Brazil Invest joint venture agreement as announced on 22 November 2019 and the Brazil distribution agreement with Onix as announced on 19 June 2019.

Under the terms of the Agreement, Anden will have the exclusive right to distribute MGC Pharma products into Peru and Bolivia.

Anden’s exclusive right to distribute MGC Pharma products within the Territory is subject to Anden meeting specified sales targets throughout the term of the Agreement.

These milestones are to be determined and will be agreed by both parties together on a quarterly basis. Anden will place MGC Pharma products in its distribution network, which includes the most relevant pharmacy chain distributor, as well as key healthcare groups.

Altogether, this would place MGC Pharma’s products in pharmacy retail fronts, specialty oncological insurance plans & clinics, as well as the largest clinics and public and private insurers all over the country. MGC Pharma will also produce a white label line of nutraceutical products for Anden to exclusively commercialise in Peru and Bolivia, provided that it will not compete with the MGC Pharma brands.

Roby Zomer, Co-founder and Managing Director of MGC Pharma, commented: “By adding Peru and Bolivia to the list of countries where our phytocannabinoid-derived medicines are available we’ve hit the ground running in this new decade. Partnering with Anden, which is the first to legally import phytocannabinoid based medicines in Peru, gives MGC Pharma access to their network of over 7,500 pharmacies, private medical clinics and an oncological private insurance system.

“This closely follows our entry to the Latin American market in November 2019, when MGC Pharma’s products became available in Brazil and in December receiving formal approval for the sale of CannEpil® in Ireland. We’ve rapidly diversified our global reach, with plans in place to add further jurisdictions this year, which is to have immediate positive impact on our cashflows. We look forward to updating the market on further key milestones towards establishing MGC Pharma as a leading international producer and supplier of phytocannabinoid based medicines.”

Curt Schwarz, Co-Founder and CEO of Anden, commented: “We firmly believe that cannabis medications have the potential of improving the quality of life of millions of people worldwide. The decree estimates that a minimum of 7,596 patients in Peru are in urgent need of access to medical cannabis and notes that “sufficient scientific evidence” exists for its use for several medical conditions. We value the efforts that MGC Pharma has made to put science first and investing in the right pathways that will get medical cannabis recognized as a legitimate (and better) alternative to conventional drugs. Anden Naturals is very excited to work with a company of the calibre of MGC Pharma.”