(Yicai Global) May 16 -- Japanese chemicals giant Kaneka has granted the exclusive patent rights in the Chinese mainland, Hong Kong, and Macao for two drugs in the form of skin patches to China’s Sunnovo Pharmaceutical Research.

Sunnovo will use the patented technology and know-how granted by Kaneka to complete the research and development of the drugs and submit a drug marketing application to China’s National Medical Products Administration, the Beijing-based firm said late yesterday. It also plans to apply this technology to the development of other new drugs in the future.

The two skin patch drugs are for the treatment of neurological diseases and mental illness. Unlike oral medications, the active ingredients in the patches can be absorbed through the skin, reducing the chances of adverse gastrointestinal reactions and providing an alternative option for patients with dysphagia.

Under the agreement, Sunnovo will pay Kaneko’s license fee in installments. After the drugs are approved for marketing, the Chinese company will pay a certain percentage of royalties to Kaneko based on annual sales.

Shares of Sunnovo [SHA: 688621] closed 1.6 percent down at CNY61.65 (USD8.85) apiece in Shanghai today. The broader market came off 0.6 percent.

Editor: Futura Costaglione