MGC Pharmaceuticals Ltd (ASX:MXC) has executed an agreement with a leading Russian doctor and medical researcher to establish a joint venture company for medical products in the Russian market, including to facilitate registration of anti-inflammatory product ArtemiC as a medicine.
The company has a binding term sheet in place to partner with Dr Svetlana Kopachevskaja and key associated investment partners with the intention to establish the JV, which will be 70% owned by MGC Pharma and 30% by the partners.
As well as ArtemiC, this agreement includes the registration of 15 MGC Pharma formulations and generic oncology medicines for the Russian market.
Registration for ArtemiC
A first step will be to begin the registration process for ArtemiC, which is designed with the scientific aim to target viral infections with inflammatory complications.
ArtemiC is being evaluated in a Phase IIa clinical trial on novel coronavirus 2019 (SARS-CoV-2) infected patients.
Registration of ArtemiC in Russia is expected to be fast-tracked post completion of the Phase IIa trial with a timeline set of around nine months to registration as a medicine.
“Extremely large market”
Russia represents a key market of strategic growth for MGC Pharma and ArtemiC as it has recorded over 960,000 cases of COVID-19 to date, the fourth-highest country globally and is still recording significantly high COVID-19 infection rates.
Co-founder and MD Roby Zomer said: “Russia is an extremely large market and is still reporting very high numbers of COVID-19 infections.
“Our time to market for ArtemiC in Russia can be reduced significantly via the fast-track process.
“The company looks forward to working with Dr Kopachevskaja and her team for the development and registration of MGC Pharma formulations and generic oncologic medicines.”
Agreement includes MXC formulations
Distribution and sales of ArtemiC to Russia and CIS countries will be managed by existing MXC partner and Israeli medical products distribution company KS Kim, part of the SK Pharma group.
The Russian pharmaceutical medicine market for 2019 was valued at US$11 billion.
This term sheet was signed following the recent release of the ArtemiC interim Phase IIa clinical trial results on COVID-19 patients, successfully meeting all primary endpoints.
Importantly, the new agreement also includes the registration of 15 MGC Pharma formulations and generic oncology medicines, leveraging off the company’s existing oncology expertise and IP led by Dr Jonathan Grunfeld.