Why this ASX cannabis share is charging higher on Tuesday

The MGC Pharmaceuticals Ltd (ASX:MXC) share price is charging higher after announcing strong prescription growth in November…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The MGC Pharmaceuticals Ltd (ASX: MXC) share price has been a positive performer on Tuesday.

In morning trade the cannabis company's shares are up 3% to 3.5 cents.

Why is the MGC Pharma share price charging higher?

Investors have been buying MGC Pharma's shares after it provided an update on its prescription growth.

According to the release, the company has seen the number of prescribed standardised, affordable cannabinoid medicines pass the 1,400 mark in Australia, the United Kingdom and Brazil. This represents 40% growth since the end of October 2019.

This has been driven by strong growth in unique patient numbers and returning patients. Over the period the company reported a 28% increase in unique patient numbers.

Management believes this further demonstrates the near-term revenue generating potential of its phytocannabinoid derived medicines.

MCG Pharma's co-founder and managing director, Roby Zomer, was very pleased with the company's performance in November.

He said: "We are delighted with continued momentum behind the business which is demonstrated by the ongoing growth in the number of prescriptions, increasing by 40% since the end of October, with an increasing number of return patients."

"This shows the near-term revenue generating potential of the Company based on its phytocannabinoid derived medicines which are now available to patients in Australia, the U.K and Brazil under early access schemes. We look forward to updating the market on our further progress as we approach the New Year," he concluded.

Cann Group rebounds.

Also on the rise in the cannabis industry on Tuesday is the Cann Group Ltd (ASX: CAN) share price. Its shares are up 11% this morning to 49.5 cents.

However, it is worth noting that its shares fell a whopping 40% on Monday. Investors have been selling its shares amid concerns over the weaker than expected demand for cannabis products in North America and the oversupply of cannabis dry flower.

Cann Group is currently constructing a massive growing facility in Victoria at significant cost. But it remains unclear whether it will be able to offload its supply given current market conditions.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors started the week off in a good mood today.

Read more »

Excited couple celebrating success while looking at smartphone.
Share Gainers

Why Bellevue Gold, Bubs, Clarity Pharmaceuticals, and Regal Partners shares are rising today

These shares are starting the week on a positive note.

Read more »

Two people lazing in deck chairs on a beautiful sandy beach throw their hands up in the air.
Travel Shares

Guess which ASX All Ords travel stock just rocketed 17% on an earnings upgrade

Investors are piling into the ASX All Ords travel stock today. Here's what's happening.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords stock just rocketed 34% on strong earnings growth

Investors just sent this ASX All Ords stock surging 34%. Here’s what’s happening.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Share Gainers

Why Dimerix, Newmont, Regal Partners, and Titomic shares are storming higher

These shares are having a good finish to the week. Let's see why.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why Fortescue, Lynas, PEXA, and Regis Healthcare shares are charging higher

These shares are having a strong session on Thursday. But why?

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Share Gainers

Why Capricorn Metals, Insignia, Perseus Mining, and Qoria shares are storming higher

These shares are having a strong session on Tuesday. But why?

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Amaero, AMP, Block, and South32 shares are racing higher today

These shares are starting the week on a positive note. But why?

Read more »