Sihuan Pharmaceutical Collaborates with NeuroVive to Develop Two
Innovative Cardio-cerebral Vascular Products in China
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.
For further enquiries, please contact Hill+Knowlton
Strategies Asia:
Angela Kung
Tel: (852) 2894 6374 / 6017 7030
Email: angela.kung@hkstrategies.com
Crystal Yip
Tel: (852) 2894 6211 / 9720 6445
Email: crystal.yip@hkstrategies.com
SOURCE Sihuan Pharmaceutical Holdings Group Ltd.