HONG KONG, 20 November 2012 – SihuanPharmaceutical Holdings Group Ltd. (HKEx: 0460) (“Sihuan Pharmaceutical” orthe “Company”), a leading pharmaceutical company with the largestcardio-cerebral vascular (“CCV”) drug franchise in China’s prescription market,is pleased to announce that it has entered into a collaboration agreement with NeuroVivePharmaceutical AB (“NeuroVive”), a leading international mitochondrial pharmaceuticaldevelopment company, to develop two innovative products, CicloMulsion® andNeuroSTAT®, which are used for the treatment of heart reperfusion injuries andtraumatic brain injuries respectively.
Pursuant to the collaboration agreement,NeuroVive will grant Sihuan Pharmaceutical an exclusive license to develop,market and sell CicloMulsion® and NeuroSTAT® in China, as well as theintellectual property rights and knowhow in connection with the products to passclinical trials. Both CicloMulsion® and NeuroSTAT® reach international standards,and they are currently undergoing the third and second phases of clinicaltrials respectively. Both medical products contain cyclosporine A, which is mainlyused for the treatment of heart reperfusion injuries and traumatic brain injuries.By protecting the mitochondria of cells, CicloMulsion® and NeuroSTAT® ensurethat energy production is preserved and the normal regenerative mechanisms ofdamaged cells can act to repair and maintain the cells. Therefore, the twoproducts act to prevent the destruction of the mitochondria in damaged cellsand the cascade of intracellular biochemical events that lead to secondarytissue damage following a traumatic injury. As there are currently no approvedpharmaceutical treatment options for these types of injuries, the two products haveenormous market potential. The current market size of exclusive drug productswith similar efficacy is over RMB1 billion. According to MENET, the CCV marketamounts to approximately RMB100 billion with an annual compound growth rate ofmore than 20% and is the largest segment in China’s pharmaceutical market.
Sihuan Pharmaceutical shall make upfront and milestone paymentstotalling RMB35 million and RMB12 million to NeuroVive in respect ofCicloMulsion® and NeuroSTAT® respectively. In addition, the Company shall pay aroyalty representing 10% of the net revenue from the two products for a periodof 10 years from the time they are launched.
Dr. Che Fengsheng, Chairman and CEO of SihuanPharmaceutical, said, “The importantcollaborative agreement with a renowned international pharmaceutical developmentcompany marks a breakthrough for our business development. The collaborationwill bring together Sihuan Pharmaceutical’s competitive advantages in productdevelopment, marketing promotion and distribution network and NeuroVive’sadvanced drug development technology. This will enrich our product portfolio, raisethe level of our product resources and widen our revenue stream. We believethat CicloMulsion® and NeuroSTAT® will become new drivers of our sales, sustainour growth in the long run, and consolidate Sihuan Pharmaceutical’s leadershipin the CCV drug market. ”
Mr. Mikael Brönnegård, CEO of NeuroVive, said, “Our agreement with Sihuan is a transformationalevent for NeuroVive and provides strong validation of the huge potential ofmitochondrial medicine and specifically the work we have done to develop thecyclophilin D inhibitors CicloMulsion® and NeuroSTAT®. Sihuan is one of theleading pharmaceutical companies in China and through this agreement will addsignificant resources, product development and marketing expertise that willgreatly accelerate the development and commercialization of our products inChina. I look forward to a long and productive partnership with Sihuan that Iam confident will lead to the launch of NeuroVive’s products for the treatmentof acute cardiovascular and neurological conditions in the Chinese market.””
Listed on the AktieTorget of the Swedish stock exchange, NeuroViveis a leading pharmaceutical development company that is focused onthe treatment of acute neurological conditions. NeuroVive is dedicated todeveloping a portfolio of products to treat acute cardiovascular (including traumaticbrain injuries, stroke, spinal cord injuries and heart attacks) andneurological conditions through mitochondrial protection.
Sihuan Pharmaceutical currently offers a portfolio of 37 types ofCCV products. According to IMS Heath Incorporated, the market share of the Company’sCCV drugs for hospital purchase was 7.5% (new statistics from IMS include traditionalChinese medicine prescription drugs) as at the end of June 2012, 2.7% ahead ofthe second-largest player in the Chinese CCV prescription drug market. As at2011 and the first half of 2012, the total revenue of Sihuan’s CCV productsaccounted for a respective 90.1% and 91.9% of total revenue of the Company.
Photo Caption: (from left to right) Dr. Che Fengsheng, Chairman and CEO of SihuanPharmaceutical, and Mr. Mikael Brönnegård, CEO of NeuroVive, attend thecollaboration agreement signing ceremony at the Swedish Embassy in China.
About Sihuan Pharmaceutical Holdings Group Ltd.
Foundedin 2001, Sihuan Pharmaceutical Holdings Group Ltd. is a leading pharmaceuticalcompany and the largest cardio-cerebral vascular drug franchise in China'sprescription market. The success of the Company can be attributed to itsdifferentiated and proven sales and marketing model, extensive nationwidedistribution network, diverse portfolio of market-leading drugs and strongresearch and development capabilities. The Company’s currentproducts encompass the top five medical therapeutic areas in China: cardio-cerebralvascular system, central nervous system, metabolism, oncology andanti-infectives. Its major products – such as Kelinao, Anjieli, Chuanqing,Qu’Ao, GM1 and Oudimei – are widely used in the treatment of variouscardio-cerebral vascular diseases.
About NeuroVive Pharmaceutical AB
Listed on the AktieTorget of the Swedish stock exchange, NeuroVivePharmaceutical is a leader in neurological medicine, health and wellness in thefield of drug development for acute neurological conditions (traumatic braininjury, stroke, spinal cord injury, and heart attacks). NeuroVive´s productsare based on cyclosporin-A and cyclosporine derivatives acting as cyclophilininhibitors for disease prevention and control through mitochondrial protection.
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