Insights

Here’s why the Medlab (ASX:MDC) share price is rising today

The Medlab Clinical Ltd (ASX: MDC) share price is treading upwards today after announcing an agreement Arrotex. Here’s what you need to know.
The post Here’s why the Medlab (ASX:MDC) share price is rising today appeared first on The Motley Fool Australia. –

The Medlab Clinical Ltd (ASX: MDC) share price is on the rise in mid-afternoon trade. This comes after the company announced an agreement with Australia’s largest generic and over the counter pharmaceutical company, Arrotex.

Consequently, at the time of writing, the Medlab share price is fetching 34 cents apiece, up 3.08%.

Below, we take a closer look at the deal between Medlab and Arrotex.

Milestone agreement

Medlab shares are in the green today after reporting an important agreement that will unlock new opportunities for the company.

According to its release, Medlab advised it has entered an exclusive non-binding Heads of Agreement (HoA) with Arrotex.

Under the deal, Arrotex will assist Medlab in accelerating its cannabinoid formulation NanoCBD for development and distribution to Australian pharmacies. This will include fast-tracking its final application with the Therapeutic Goods Administration (TGA). Medlab hopes to position NanoCBD for pharmacist only medicines schedule (S3).

Interestingly, the HoA is the first time a pharma and biotech have formed a partnership to explore medical cannabis prospects in Australia.

The contract, which will include commercial terms, is expected to be finalised before 1 July 2021.

What did management say?

Medlab CEO Dr. Sean Hall hailed the new agreement, saying:

This is a major milestone for both the Australian market and the budding partnership between Medlab and Arrotex. Unlike many CBD producers, Medlab can deliver to the pharmaceutical standards required for TGA approval and this partnership will now enable direct application into clinical practice through Arrotex’s extensive network. There is a clear alignment within both companies to deliver a superior, approved CBD product to Australian patients.

Dr. Hall went on to speak about the company’s novel medicinal candidate, NanoCBD. He added:

A key differentiator of NanoCBD is the proprietary delivery platform NanoCelle that provides faster and more effective absorption of active ingredients into the bloodstream, without the need for needles or pills. It is a commercially viable platform that offer unique opportunities for partnering with some of the biggest players in the pharma industry.

How has the Medlab share price performed?

Shares in Medlab have been on a rollercoaster ride over the past 12 months, riding on volatile swings. Despite the company’s shares being up a mediocre 11% since this time last year, Medlab has mostly recovered compared to its pre-COVID highs.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the Medlab (ASX:MDC) share price is rising today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!