MGC Pharmaceuticals

AU: MXC

AU$52.1m market cap

AU$0.04 last close

MGC Pharmaceuticals (ASX: MXC) is an Australia-headquartered specialist medical cannabis biopharma company, which has most of its operations based in Europe. Management has many years of technical, clinical and commercial experience in the medical cannabis industry.

Investment summary

MGC Pharmaceuticals is developing cannabis-based pharmaceutical products, initially in Australia, Europe and Latin America. It is already growing medicinal cannabis crops in the Czech Republic and in Slovenia has established one of the few GMP-certified resin extraction and separation plants in Europe. It plans to establish larger-scale operations in Malta. Since beginning in earnest in August, 1,400 prescriptions for MGC’s products (CannEpil and MXP100) have been issued in Australia, the UK and Brazil. The company intends to develop CannEpil and CogniCann as registered pharmaceutical treatments for refractory epilepsy and dementia patients. A Phase II study of CogniCann is underway in Australia, while approvals to begin CannEpil trials have been received.

Y/E Jun
Revenue (A$m)
EBITDA (A$m)
PBT (A$m)
EPS (c)
P/E (x)
P/CF (x)
2018A 0.3 (8.9) (5.9) (0.52) N/A N/A
2019A 0.7 (1.8) (8.4) (0.70) N/A N/A
2020E 2.4 (7.9) (8.1) (0.59) N/A N/A
2021E 7.3 (5.8) (6.1) (0.44) N/A N/A
Industry outlook

Increasing acceptance and regulatory approvals in many countries have made medicinal cannabis a fast-growing industry. Cannabinoids have generated promising data in many indications and are attracting considerable interest.

Last updated on 16/01/2020
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (A$m) 5
Forecast gearing ratio (%) 61
Price performance
%
1m
3m
12m
Actual 26.7 8.6 (11.6)
Relative* 23.0 3.8 (27.2)
52-week high/low A$0.1/A$0.0
*% relative to local index
Key management
Brett Mitchell Executive Chairman
Roby Zomer President & CTO