- MGC Pharma (MXC) is set to enlarge its footprint in Latin America after entering a distribution agreement with Anden Bio Naturals
- The agreement will see Anden commercialise and distribute MGC Pharma's cannabis based medicines in Peru and Bolivia
- Anden is the only legal distributer of cannabis derived products in Peru and has a large distribution network
- In addition, MGC Pharma will provide a white label line of products for Anden to commercialise in the two countries
- MGC shares went unchanged today and were worth 3.5 cents each at market close
MGC Pharma (MXC) is set to enlarge its footprint in Latin America after entering a distribution agreement with Anden Bio Naturals.
The biopharmaceutical company today announced it has signed an exclusive commercialisation and distribution agreement with Anden for Peru and Bolivia.
The deal will see Anden distribute MGC Pharma's phytocannabinoid-derived medicines in Peru and Bolivia for a five-year term.
Anden is the only legal importer of cannabis-derived products in Peru and delivered its first products to the country in October 2019.
In addition, Anden has an established distribution network of pharmacies, private medical clinics and insurance providers in the country.
Under the deal, the exclusive distribution rights are subject to Anden meeting sales targets which will be agreed upon by both parties every quarter.
MGC Pharma will also provide Anden with a white label line of nutraceutical products to commercialise in Peru and Bolivia, given they will not compete with MGC Pharma products.
Anden will pay success fees to MGC Pharma for the white label products based on sales milestones to be determined by both parties, again on a quarterly basis.
MGC Pharma first entered Latin America in June last year when its signed an agreement with Onix to distribute MGC Pharma products in Brazil, via its subsidiary OnixCann.
This was followed by the establishment of a new joint venture with BrazilInvest Global Business and Development for the sale and marketing of MGC Pharma products in Brazil and Latin America.
MGC shares went unchanged today and were worth 3.5 cents each at market close.