The MGC Pharmaceuticals Ltd (ASX: MXC) share price is clicking higher on Thursday and is currently trading at 6.1 cents.
MGC shares are lifting after the company announced updates to its new production and supply agreement out of the United States.
For context, the S&P/ASX Health Care Index (ASX: XHJ) is currently only 0.5% higher so far today.
Here's what we know.
MGC Pharmaceuticals share price jumps after initial order placed
The MGC Pharmaceuticals share price is surging 5.17% after the company advised its distribution partner, AMC Holdings Inc, has placed an initial order of 1,000 units for the company's CimetrA label.
The order is "on an expedited basis, in order to fast track the approval process for the medication to be distributed and sold" throughout the US.
AMC will ship the units to a pharmacy where they "will then be analysed in order to make comparisons with MGC Pharma's research lab in Slovenia".
This process is the first step in materialising the US Supply Agreement signed by MGC and AMC last month. Both parties are working towards starting clinical trials and meeting supply milestones in the US for CimetrA.
CimetrA is MCG's lead drug candidate, designed to treat viral infections that produce inflammatory complications.
These complications include heart inflammation, breathing difficulties, loss of consciousness and even death.
COVID-19 falls under this umbrella, and the company began enrolments in July for a Phase 3 trial to treat COVID patients admitted to hospital using CimetrA.
Today's release notes that AMC is now working closely with the University of Florida on the "immediate submission of CimetrA to [the University's] internal review board" due to surges in US COVID-19 case numbers.
Aside from this, MGC is working closely with its partners to commercialise its adjacent drug labels, CannEpil and CogniCann, as per the announcement.
Investors appear to have bought on the news, and are pushing the MGC Pharmaceuticals share price higher in midday trading.
What did management say?
Speaking on the announcement, MGC Pharma CEO Roby Zomer, said:
AMC are already making significant progress in propelling CimetrA™, CannEpil® and CogniCann® to Clinical Trial stage in the US and we are pleased that they have cemented relationships with these prestigious institutions for the continued research into our products.
MGC Pharmaceuticals share price snapshot
The MGC Pharmaceuticals share price has rallied by around 144% this year to date and climbed by almost 9% this past month.
Over the last 12 months, MGC Pharma shareholders have enjoyed a return of 165%, ahead of the S&P/ASX 200 index (ASX: XJO)'s gain of about 25% in this time.
