Sihuan Pharmaceutical Collaborates with NeuroVive to Develop Two Innovative Cardio-cerebral Vascular Products in China
Collaborate with Renowned International Pharmaceutical Company
Set to Further Optimize Product Portfolio
HONG KONG, Nov. 20, 2012 /PRNewswire/ -- Sihuan Pharmaceutical Holdings Group Ltd. (HKEx: 0460) ("Sihuan Pharmaceutical" or the "Company"), a leading pharmaceutical company with the largest cardio-cerebral vascular ("CCV") drug franchise in China's prescription market, is pleased to announce that it has entered into a collaboration agreement with NeuroVive Pharmaceutical AB ("NeuroVive"), a leading international mitochondrial pharmaceutical development company, to develop two innovative products, CicloMulsion® and NeuroSTAT®, which are used for the treatment of heart reperfusion injuries and traumatic 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 the intellectual property rights and knowhow in connection with the products to pass clinical trials. Both CicloMulsion® and NeuroSTAT® reach international standards, and they are currently undergoing the third and second phases of clinical trials respectively. Both medical products contain cyclosporine A, which is mainly used for the treatment of heart reperfusion injuries and traumatic brain injuries. By protecting the mitochondria of cells, CicloMulsion® and NeuroSTAT® ensure that energy production is preserved and the normal regenerative mechanisms of damaged cells can act to repair and maintain the cells. Therefore, the two products act to prevent the destruction of the mitochondria in damaged cells and the cascade of intracellular biochemical events that lead to secondary tissue damage following a traumatic injury. As there are currently no approved pharmaceutical treatment options for these types of injuries, the two products have enormous market potential. The current market size of exclusive drug products with similar efficacy is over RMB1 billion. According to MENET, the CCV market amounts to approximately RMB100 billion with an annual compound growth rate of more than 20% and is the largest segment in China's pharmaceutical market.
Sihuan Pharmaceutical shall make upfront and milestone payments totalling RMB35 million and RMB12 million to NeuroVive in respect of CicloMulsion® and NeuroSTAT® respectively. In addition, the Company shall pay a royalty representing 10% of the net revenue from the two products for a period of 10 years from the time they are launched.
Dr. Che Fengsheng, Chairman and CEO of Sihuan Pharmaceutical, said, "The important collaborative agreement with a renowned international pharmaceutical development company marks a breakthrough for our business development. The collaboration will bring together Sihuan Pharmaceutical's competitive advantages in product development, marketing promotion and distribution network and NeuroVive's advanced drug development technology. This will enrich our product portfolio, raise the level of our product resources and widen our revenue stream. We believe that CicloMulsion® and NeuroSTAT® will become new drivers of our sales, sustain our growth in the long run, and consolidate Sihuan Pharmaceutical's leadership in the CCV drug market."
Mr. Mikael Bronnegard, CEO of NeuroVive, said, "Our agreement with Sihuan is a transformational event for NeuroVive and provides strong validation of the huge potential of mitochondrial medicine and specifically the work we have done to develop the cyclophilin D inhibitors CicloMulsion® and NeuroSTAT®. Sihuan is one of the leading pharmaceutical companies in China and through this agreement will add significant resources, product development and marketing expertise that will greatly accelerate the development and commercialization of our products in China. I look forward to a long and productive partnership with Sihuan that I am confident will lead to the launch of NeuroVive's products for the treatment of acute cardiovascular and neurological conditions in the Chinese market."
Listed on the AktieTorget of the Swedish stock exchange, NeuroVive is a leading pharmaceutical development company that is focused on the treatment of acute neurological conditions. NeuroVive is dedicated to developing a portfolio of products to treat acute cardiovascular (including traumatic brain injuries, stroke, spinal cord injuries and heart attacks) and neurological conditions through mitochondrial protection.
Sihuan Pharmaceutical currently offers a portfolio of 37 types of CCV products. According to IMS Health Incorporated, the market share of the Company's CCV drugs for hospital purchase was 7.5% (new statistics from IMS include traditional Chinese medicine prescription drugs) as at the end of June 2012, 2.7% ahead of the second-largest player in the Chinese CCV prescription drug market. As at 2011 and the first half of 2012, the total revenue of Sihuan's CCV products accounted for a respective 90.1% and 91.9% of total revenue of the Company.
About Sihuan Pharmaceutical Holdings Group Ltd.
Founded in 2001, Sihuan Pharmaceutical Holdings Group Ltd. is a leading pharmaceutical company and the largest cardio-cerebral vascular drug franchise in China's prescription market. The success of the Company can be attributed to its differentiated and proven sales and marketing model, extensive nationwide distribution network, diverse portfolio of market-leading drugs and strong research and development capabilities. The Company's current products encompass the top five medical therapeutic areas in China: cardio-cerebral vascular system, central nervous system, metabolism, oncology and anti-infectives. Its major products -- such as Kelinao, Anjieli, Chuanqing, Qu'Ao, GM1 and Oudimei -- are widely used in the treatment of various cardio-cerebral vascular diseases.
About NeuroVive Pharmaceutical AB
Listed on the AktieTorget of the Swedish stock exchange, NeuroVive Pharmaceutical is a leader in neurological medicine, health and wellness in the field of drug development for acute neurological conditions (traumatic brain injury, stroke, spinal cord injury, and heart attacks). NeuroVive's products are based on cyclosporin-A and cyclosporine derivatives acting as cyclophilin inhibitors for disease prevention and control through mitochondrial protection.
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SOURCE Sihuan Pharmaceutical Holdings Group Ltd.