Australia's fledgling medicinal cannabis market continues to gain momentum, with MGC Pharmaceuticals planning an entry.
MGC, which currently operates in Slovenia supplying non-psychoactive cannabidiol (CBD) resin extract to the growing European cosmetics and medical markets, has its sights set on becoming a leader in Australia's medicinal cannabis market, worth $150 million a year.
The company is seeking a licence to grow medicinal cannabis in Australia, extend its clinical trial program to include Australia, and expand outlets for its cannabis-based cosmetics into Australasia.
It's also looking for partners for its global supply chain.
MGC, and other so-called "pot stocks", have been encouraged by the Australian government's decision in February 2016 to allow cannabis cultivation in Australia for medical or scientific purposes.
"The medicinal cannabis market in Australia is emerging as one of the most exciting opportunities for Australian patients, material growers and the pharmaceutical industry," MGC Pharmaceuticals managing director Nativ Segev said on Monday.
"As Australia places itself on the global medicinal cannabis map, MGC Pharmaceuticals plans to play a crucial leadership role in the development of the domestic industry."
Medicinal cannabis refers to the use of cannabis and its component cannabinoids - usually tetrahydrocannabinol (THC) and cannabidiol (CBD) - in treating diseases or alleviating symptoms.
CBD, a non-psychoactive component of cannabis, accounts for more than 50 per cent of known therapeutic applications.
MGC says it can be used to treat skin and health conditions such as acne, psoriasis, eczema and dry skin.
CBD also appears to relieve convulsion (epilepsy), inflammation, anxiety, nausea and short-term memory loss.
Israeli medical cannabis industry executives formed MGC in early 2015 to target the growing opportunities in medicinal and cosmetic cannabis markets around the world.
Perth-based minerals explorer Erin Resources took over the business in February 2016 and changed its name to MGC Pharmaceuticals. It is listed on the Australian share market.
Shares in MGC were 0.3 cents higher at 3.1 cents at 1327 AEST.
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