- Prometic to own 75% of the Joint Venture following SRAM's $33 million investment
- Proceeds earmarked to support clinical development in North America & Europe
- Prometic to benefit from extensive networking and track record of SRAM in Chinese Healthcare Space
- Joint Venture's Initial Focus on treatment of Diabetic Kidney Disease, Lung and Liver Fibrosis
LAVAL, QC, March 30, 2017 /CNW Telbec/ - Prometic Life Sciences Inc. (TSX: PLI) (OTCQX: PFSCF) ("Prometic" or the "Corporation") announced today that it has entered into a binding Memorandum of Terms with Shenzhen Royal Asset Management Co., Ltd. ("SRAM") to establish a joint venture for the development, manufacture and commercialization of PBI-4050, PBI-4547 and PBI-4425 in the People's Republic of China (excluding Hong Kong, Taiwan and Macau) (the "Agreement").
Under the terms of the Agreement, Prometic will license the development, manufacturing and commercialization rights for PBI-4050, PBI-4547 and PBI-4425 for the Chinese market with an initial focus on diabetic kidney disease, Iung and liver fibrosis to a newly formed subsidiary, to be named Prometic ChinaCo (name subject to the approval of the relevant authorities).
SRAM, a leading investment group in healthcare in China, will provide $23 million in 2017, $13 million upfront and $10 million expected in H2 2017, to secure an initial 17% ownership of Prometic ChinaCo, with a right to increase it up to 25% with a further $10 million investment related to milestones expected in 2018.
The funds provided by SRAM are to be used by Prometic to support and further the clinical development of PBI-4050, PBI-4547 and PBI-4425 outside China, which also contributes to de-risking the clinical and regulatory approval process for China. Prometic and SRAM are expecting Prometic ChinaCo to enter into additional partnering and licensing transactions to further leverage the value of the product portfolio in China and provide additional funding. As part of the Agreement and business model, ProMetic ChinaCo will control the manufacturing of the bulk API of the three drug candidates in China to supply to sub-licensees. Therefore Prometic ChinaCo's revenue stream will include sales of the bulk API to sub-licensees as well as royalties on sales of the 3 drugs in China.
"Smart partnering for the Chinese market requires a combination of a deal structure that enables Prometic to retain a significant portion of the value created while attracting smart money from players with established track record in the pharma business in China" stated Mr. Pierre Laurin, Chief Executive Officer of Prometic. "China is the second largest pharmaceutical market in the world after the USA. For instance, recent studies suggest that over 113 million Chinese people suffer from diabetes and over 24 million from diabetic kidney disease. We are very pleased to be able to advance our promising drug candidates to address this significant unmet medical need that is taking epic proportions" added Mr. Laurin.
Chairman and CEO of SRAM, Mr. Huan commented: "We are very impressed with Prometic's product development track record and capabilities and with the robust performance of PBI-4050 thus far in the phase 2 clinical trials. Our partnership is designed to leverage our mutual strengths and capitalize on synergies between our respective groups. As PBI-4050, PBI-4547 and PBI-4425 are progressing in their respective clinical programs in North America, we will systematically prepare the ground for an optimal regulatory pathway for the Chinese market".
More details about the transaction will be provided during the fourth quarter and 2016 year-end financial results conference call scheduled for Friday March 31, 2017 at 11:00am (ET).
More on Shenzhen Royal Asset Management
Shenzhen Royal Asset Management Co. Ltd was founded by Mr. Yu Huang who is also the Chairman of the Shenzhen TWOWHO Network & Fund Co. Ltd. Mr. Huang's leadership as the General Manager at Shenzhen GTJA Investment Group led to the investment in Jiangxi Boya Biopharmaceutical Corporation in 2007 and the successful IPO in 2013. Boya has become one of the prestigious biopharmaceutical companies in China with a market capitalization of over ¥17 billion CNY. Mr. Huang was instrumental in Boya's acquisition of 3 pharmaceutical companies in China namely, Hainan Tianhuang Pharmaceutical Co., Ltd, Guizhou Tianan Pharmaceutical Company and Jiangxi Huiyinbi Group. Recently, SRAM acquired Jiangsu Renshou Pharmaceutical Company. Prior to GTJA, Mr. Huang was Deputy Manager at Beijing Guotai Junan Securities, one of the largest investment bank in China.
About Prometic Life Sciences Inc.
Prometic Life Sciences Inc. (www.prometic.com) is a long established biopharmaceutical company with globally recognized expertise in bioseparations, plasma-derived therapeutics and small-molecule drug development. Prometic is also active in developing its own novel small-molecule therapeutic products targeting unmet medical needs in the field of fibrosis, anemia, neutropenia, cancer and autoimmune diseases/inflammation as well as certain nephropathies. Prometic offers its state of the art technologies for large-scale purification of biologics, drug development, proteomics and the elimination of pathogens to a growing base of industry leaders and uses its own affinity technology that provides for highly efficient extraction and purification of therapeutic proteins from human plasma in order to develop best-in-class therapeutics and orphan drugs. Headquartered in Laval (Canada), Prometic has R&D facilities in the UK, the U.S. and Canada, manufacturing facilities in the UK and commercial activities in the U.S., Canada, Europe, Russia, Asia and Australia.
Forward Looking Statements
This press release contains forward-looking statements about Prometic's objectives, strategies and businesses that involve risks and uncertainties. These statements are "forward-looking" because they are based on our current expectations about the markets we operate in and on various estimates and assumptions. Actual events or results may differ materially from those anticipated in these forward-looking statements if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. Such risks and assumptions include, but are not limited to, Prometic's ability to develop, manufacture, and successfully commercialize value-added pharmaceutical products, the availability of funds and resources to pursue R&D projects, the successful and timely completion of clinical studies, the ability of Prometic to take advantage of business opportunities in the pharmaceutical industry, uncertainties related to the regulatory process and general changes in economic conditions. You will find a more detailed assessment of the risks that could cause actual events or results to materially differ from our current expectations in Prometic's Annual Information Form for the year ended December 31, 2015, under the heading "Risk and Uncertainties related to Prometic's business". As a result, we cannot guarantee that any forward-looking statement will materialize. We assume no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason, unless required by applicable securities laws and regulations. All amounts are in Canadian dollars unless indicated otherwise.
SOURCE ProMetic Life Sciences Inc.
For further information: Pierre Laurin, President and CEO, Prometic Life Sciences Inc., email@example.com, +1.450.781.0115; Frédéric Dumais, Senior Director, Communications and Investor Relations, Prometic Life Sciences Inc., firstname.lastname@example.org, +1.450.781.0115