LONDON Stock Exchange-listed MGC Pharmaceuticals is to acquire Israeli clinical trial specialist MediCaNL for £3.3m (A$6m) in a share-based transaction.
On completion of the acquisition, MediCaNL will design, manage and run all clinical trials for MGC Pharma in accordance with the European Medicines Agency, Federal Drug Administration and Israeli health regulations.
MGC Pharmaceuticals became the first cannabis company to be listed on the LSE in February this year and is now valid at over £80m. It will be undertaking multiple clinical trials in 2021/22 and in future years.
Its co-founder and managing director Roby Zomer said: “MediCaNL is led by some of the world’s most renowned doctors and scientists who will be a great asset to the MGC Pharma team.
“By acquiring MediCaNL and bringing their services and expertise in-house, we not only cut significant costs from our forecasted clinical trial expenditure but also remove much of the red tape involved in the preclinical and clinical trial process.’
In 2020, MediCaNL generated revenues of almost $1m, with a profit margin of 25%. MGC will soon be undertaking one Phase III and two-Phase II clinical trials for CannEpil, CogniCann and CimertA, along with two Phase I clinical trials planned for the second half of 2021.
MGC was initially listed on the Australian Securities Exchange before heading for a dual listing in London.