MGC Pharmaceuticals

AU: MXC

AU$41.2m market cap

AU$0.03 last close

MGC Pharmaceuticals (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 it 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, over 3,295 prescriptions for MGC’s products (CannEpil and MXP100) have been issued in Australia, the UK and Brazil. The company’s new Mercury Pharma line of products in Australia is doing well with orders for 3,700 units already received. On delivery, total filled prescriptions for all MGC products to date would more than double to over 4,500.

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 11/08/2020
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (A$m) 5
Forecast gearing ratio (%) 61
Price performance
%
1m
3m
12m
Actual 13.0 0.0 (50.9)
Relative* 9.2 (12.2) (47.7)
52-week high/low A$0.1/A$0.0
*% relative to local index
Key management
Brett Mitchell Executive Chairman
Roby Zomer President & CTO