Healthcare

MGC Pharma wins ethics approval for South African covid trials

Fri 08 Jul 22, 2:08pm (AEST)
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Key Points

  • MGC is to use its plant-based CimetrA medicine in a South African trial studying its effects on covid-19 symptoms
  • CimetrA is advertised as consisting of Curcumin and Boswellia, two plant-based products with significant scientific interest
  • Study aims to figure out a baseline dosage for the product

Healthcare microcap MGC Pharma (ASX:MXC) is to commence a trial using its CimetrA product on covid-19 patients in South Africa. 

The company has today announced its receipt of ethics approvals and an import licence to ship its product to the jurisdiction.

CimetrA, MGC is hopeful, will be proven in the trial as a powerful anti-inflammatory benefitting patients with covid-19 symptoms. 

The study will give MGC a wider set of data to use after another test last year based in Israel, with interim results of that study due in the coming quarter. 

MGC notes it is also collecting data on ‘long covid,’ where symptoms of the illness persist for far longer than the immediate flu-like effects. 

Data will back regulatory process 

MGC notes today the South African trial will provide it with data to accelerate obtaining of international regulatory permits. 

The company is confident in its position CimetrA can treat conditions where a primary factor is inflammation, though investors should note this would likely see it used in conjunction with other medicines. 

What do investors think about MGC?

Right now, MGC shares are up 12.5% on a one week basis, though the market has arguably overlooked today’s news.

This could be inspired by reluctance or fatigue to hold the stock: year to date performance is down -51.3%. 

MGC has a market cap of $49m and is ranked 107 out of 210 companies in the health sector. 

With interim results from the Israeli covid study soon to be released, MGC’s share performance could quickly recover in the second half of the year, depending on the data.

MGC is having a rough year, but the look of results from the Israel study could change that
MGC is having a rough year, but the look of results from the Israel study could change that

 

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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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