MGC Pharmaceuticals, an EU-based specialist medical cannabis firm, announced that it has received FDA approval for its CBD based cosmetic range, MGC Derma Anti-Ageing line, allowing the Company to sell and distribute the products across all US States.
The company also currently has applications pending for similar approvals in Canada and Australia.
“Importantly, the FDA approval means that the 16 MGC Derma CBD based products can be imported and sold throughout the whole of the USA, even in states where Medicinal Cannabis is not yet legal,” the company said in a statement.
The FDA approval follows the recent approval earlier this month from the European Commission’s Cosmetic Products Notification Portal (CPNP), enabling the company to sell and distribute its MGC Derma cosmetic products throughout the European Union (EU).
With the FDA and CPNP approvals secured, the company will now be actively pursuing strategic distribution partners across key markets in the USA and Europe.
In addition, the Company has now executed its first US sales off take agreement for products from the range in the US, for the exclusive distribution of the MGC Derma CBD based cosmetic products in California.
The order has been delivered under a new exclusive distribution agreement with Californian-based company C&M CBD Holding LLC. The first year order under this agreement is for over 60,000 units of CBD Anti-Aging cosmetic products and includes
Moisturizing Day Cream SPF 30, Active Firming Anti-Aging Mask, Active Bright Facial Cream, Anti Puffiness and Dark Circles Eye Serum.
The first year contract value is in an amount of approximately €1.2m per annum, and is to be paid in monthly installments in advance. The agreement provides scope for increases in the volume and value of the contract.
The products will be produced in MGC Pharmaceuticals Slovenian facilities, MGC Derma, with monthly shipping ready to commence in September 2016. The cosmetics products are expected to be on Californian shelves by October 2016.
With a global market size of over US$120 billion currently, the US skin care cosmetics market is the largest individual market in the world and is estimated to be worth US$11b alone.
“MGC Pharmaceuticals is moving forward in its commercialisation strategy at a rapid pace. Having the first milestone in place, just entered the European market with CPNP grant of approval, an exclusive European distribution agreement and accompanying first cosmetics product sales order, we are delighted to now be entering the US cosmetics market, this will be followed by growing into the Pharma industry,” said Nativ Segev, Co-founder and Managing Director, MGC Pharmaceuticals.
He added that receiving FDA approval and signing the key distribution agreement with C&M allows MGC to start selling our cosmetics products into the large US cosmetics market, expected to be worth $11 billion in revenue in 2016 alone. – BusinessNewsAsia.com