Cathay International Holdings Ld Lansen subsidiary enters distribution agreement (1628B)
March 31 2017 - 3:50AM
UK Regulatory
TIDMCTI
RNS Number : 1628B
Cathay International Holdings Ld
31 March 2017
Cathay International Holdings Limited
("Cathay", the "Company" or the "Group")
Lansen subsidiary enters into a distribution agreement with
Botai as the distributor of Collagen Injectable Fillers in
China
Hong Kong, 31 March 2017 - Cathay International Holdings Limited
(LSE: CTI.L), a leading operator and investor in the growing
healthcare sector in the People's Republic of China (the "PRC"),
today announces that its 50.56% owned subsidiary, Lansen
Pharmaceutical Holdings Ltd ("Lansen") (HKEX: 503), has announced
that its indirect wholly-owned subsidiary, Ningbo Lansen Medibeauty
Tech Ltd. ("Ningbo Lansen Beauty"), a newly established entity by
Lansen to engage in the marketing and distribution of medical
beauty products, has entered into a Distribution Agreement with
Botai (an indirectly wholly owned subsidiary of the Company)
whereby Botai agrees to appoint Ningbo Lansen Beauty as the
distributor of its Collagen Injectable Fillers in the PRC (the
"Agreement").
The term of the Agreement begins on 31 March 2017 ("the
Effective Date") and terminates on 31 March 2018, subject to an
extension which may be agreed by the parties (the "Term"). Under
the terms of the Agreement, Ningbo Lansen Beauty, as the appointed
distributor, may, during the Term, purchase the Collagen Injectable
Fillers from Botai on an order-by-order basis. The unit price of
the Collagen Injectable Fillers to be purchased by Ningbo Lansen
Beauty from Botai under the Distribution Agreement is agreed at a
fixed price throughout the Term and is determined with reference to
the prices of comparable collagen injectable fillers products in
the PRC market.
The maximum total value of the transactions contemplated under
the Agreement for the period from the Effective Date to 31 December
2017 and period from 1 January 2018 to 31 March 2018 are estimated
to be RMB28.6 million (approximately USD4.2 million, GBP3.3
million) and RMB11.7 million (approximately USD1.7 million, GBP1.4
million) respectively.
Botai's Collagen Injectable Fillers, branded "Fillderm", is used
in non-surgical cosmetic treatments by filling facial dermal tissue
to rectify medium to high level nasolabial folds. By injecting into
dermis, the collagen fibre solution plumps up and smoothes the skin
to improve wrinkles and fill sunken skin.
Mr. Lee Jin-Yi, Chief Executive Officer of Cathay, commented:
"We are pleased that Lansen and Botai have agreed to renew their
agreement for the sale of Botai's Collagen Injectable Fillers. This
Agreement fits into Lansen's strategy of expanding its
cosmeceutical product portfolio and enables Botai to continue
leveraging Lansen's marketing and distribution expertise and
channel, which we believe will accelerate the market penetration of
Fillderm. Today's renewal of the agreement reinforces business
synergies across the Group which we believe will lead to greater
shareholder value over time."
-ENDS-
For further enquiries, please contact:
Cathay International Holdings Limited Tel: +852 2828 9289
Eric Siu (Finance Director)
Patrick Sung (Director and Controller)
N+1 Singer Tel: +44 (0) 20 7496 3000
Aubrey Powell / Lauren Kettle - Corporate Finance
Brough Ransom - Sales
Consilium Strategic Communications Tel: +44 (0) 20 3709 5702
Mary-Jane Elliott/ Matthew Neal / Lindsey Neville
About Cathay
Cathay International Holdings Limited (LSE: CTI.L) is a main
market listed investment holding company and a leading operator and
investor in the growing healthcare sector in the People's Republic
of China ("PRC"). The Company and its subsidiaries (collectively
the "Group") aim to leverage on growth opportunities in the strong
and growing domestic demand for high quality healthcare products in
the PRC and build its portfolio companies into market sector
leaders with competitive edge. Cathay has already demonstrated a
strong track record of identifying high-growth potential investment
opportunities in this area including: Lansen Group, a leading
specialty pharmaceutical company focused on rheumatology and
dermatology in the PRC; Haizi, a company engaged in the
manufacture, marketing and sale of inositol and its by-product,
di-calcium phosphate; Yangling, a company engaged in production and
sales of plant extracts for use as key active ingredients in
healthcare products; and Botai, a company engaged in collagen
products.
The Group employs approximately 2,000 people across the PRC,
including over 30 specialist corporate and business development
staff based at the holding company's offices in Hong Kong and
Shenzhen. Cathay also has a hotel investment. For more information
please visit the Company's website: www.cathay-intl.com.hk.
About Lansen
Lansen, whose shares are listed on the mainboard of the Hong
Kong Stock Exchange, is a 50.56% owned subsidiary of Cathay. Lansen
is engaged in the manufacture, distribution and development of
specialty prescription drugs for treatment of autoimmune disorder
in rheumatology and dermatology. Lansen is in the leading market
position in DMARDs for treatment of rheumatoid arthritis RA in the
PRC. Lansen has established an extensive distribution network,
covering more than 1,000 hospitals in four municipalities, 25
provinces and cities in the PRC. For more information please visit
the Lansen's website: http://www.lansen.com.cn/En/index.asp.
About Botai
Botai, an indirect wholly owned subsidiary of Cathay, is a
company established under the laws of the PRC which is primarily
engaged in the research and development of collagen-based dermal
fillers for the cosmetic surgery market. Botai received the first
ever domestic production licence for collagen-based dermal fillers
by the CFDA.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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