MGC Pharmaceuticals (MXC) Share Price Rallied 7.8% Today. Here’s Why.

Key points:
MGC Pharmaceuticals (MXC) share price rallied 7.8% on the latest update.
The pharma company will start clinical trials of its COVID-19 drug soon.
The trials will be conducted in the US by its partners. Is it a buy?

The MGC Pharmaceuticals Ltd (LON: MXC) share price rallied 7.8% after issuing an update regarding progress towards the launch of a US clinical trial of its CimetrA™, a plant-based Investigational Medicinal Product (IMP), which is set to start clinical trials after the US FDA approves of the same.

The trial will be conducted by MGC Pharma’s US distribution partner AMC Holdings Inc. after the two companies signed a market access and distribution agreement in 2021 for a minimum order of MGC Pharma’s products worth US$24 million in three years.

Also read: The Best Biotech Stocks Under $5 To Buy Right Now.

The agreement will see AMC Holdings manage MGC Pharm’s US-based clinical trials and seek FDA clearance to market MGC’s phytomedicines in the US. In addition, MGC and AMC executives are working with officials from the University of South Florida’s Botanical Medicine Research and Education Consortium to execute the first US clinical trial of CimetrA™.

CimetrA™ is being developed as a treatment for COVID-19. It is orally administered and is a natural medicine made of Boswellia and Curcumin. The drug uses Graft Polymer’s GraftBioTM self-nano emulsifying drug delivery system (SNEDDS).

MGC Pharmaceuticals has already conducted clinical trials in Israel and India that demonstrated the drug’s effectiveness in patients suffering from moderate COVID-19 symptoms. The patients enrolled in the Phase II double-blind clinical trial did not require additional oxygen, mechanical ventilation, or admission to intensive care. In contrast, 23.4% of the placebo group required further assistance.

CimetrA™ can be self-administered as an oral spray. It is highly effective because it is delivered directly to the oral mucosal cells and is easily absorbed into the body in a highly concentrated form.

Many hope that MGC Pharma’s trials will have a positive outcome, but we will have to wait for the phase III clinical trial results to know for sure. Investors’ apathy toward biotech stocks may explain why MGC Pharma shares have fallen 51% since January despite its positive prospects.

MGC Pharma shares look attractive at current prices, and I would buy them. However, there are no guarantees we will not see a further decline.

*This is not investment advice. Always do your due diligence before making investment decisions.

MGC Pharma share price.