Australia’s MGC Pharmaceuticals announced last Thursday the signing of an agreement involving white-label versions of its cannabidiol cosmetics products that will be supplied to a Korean cosmetics manufacturer.
The company says the deal with Varm Cosmo is set to deliver at least $3 million in monthly sales to MGC Derma, MGC Pharmaceuticals’ joint venture with cosmetics manufacturer Dr M Burstein Ltd.
“It marks the culmination of much work in building our operations and our brand within this emerging market over the past 12 months, as well as development work for our prop rietary formulations by our MGC Pharmaceuticals research team in Europe,” said MGC’s CEO and co-founder, Roby Zomer. “Varm Cosmo are a great company to partner with to bring our cosmetics product to a wider consumer market.”
South Korea is a major market for cosmetics, with its value estimated to be over US$13 billion this year and facial skincare products to account for just over half of that total.
MGC Derma will deliver 15 tonnes in total of five of its cannabidiol (CBD) cosmetic products – each month. Additional cosmetic products may be added and the initial 3-year term may also be extended.
While its head office is in Australia, MGC’s cannabis growing operations occur in Europe.
A recent update from the CEO states more than 450 medicinal cannabis plants are flowering at MGC’s greenhouse facility in the Czech Republic, with harvesting to commence this week. CBD will be extracted from the plants for the company’s cosmetics products and for clinical studies. Remaining biomass will be sold as cannabidiol-rich Aquiol.
In Slovenia, MGC’s open field farm delivered more than 4,000kg of cannabis when harvested earlier this month.
“Our Botanic division is moving through its planting and harvesting calendar on schedule and with very good production results,” said Mr. Zomer. “We are pleased with the results that are starting to emerge from our facilities in Slovenia and the Czech Republic, and are excited to be starting the first phase of our genetics research program with the University of Ljubljana in Slovenia.”
The collaboration with the University of Ljubljana, MGC aims to develop cannabis strains to target treatment of specific conditions, such as epilepsy.