(Yicai Global) May 22 -- Shenzhen Salubris Pharmaceuticals Co. will buy a stake in a Swiss cardiovascular interventional therapy equipment developer via a wholly-controlled subsidiary registered in Hong Kong. It aims to obtain the exclusive rights for technology development and use in the Chinese mainland as it looks to improve its cardiovascular product line.
Salubris will sign an agreement with M.A. Med Alliance SA, said a statement from the Shenzhen-based drugs firm. Its wholly-owned unit Splendris International Ltd. plans to subscribe to new shares in the target company with a USD20 million in-house fund.
Upon the conclusion of the deal, Splendris will hold a nearly 17 percent stake in the target company as the single largest shareholder, said the statement.
Salubris will also splash out USD10 million to buy the intellectual property rights and technical information related to a drug-coated balloon solution owned by Med alliance, alongside an exclusive license to use such rights in the Chinese mainland, the statement added.
Meanwhile, the company has the exclusive right pertaining to the product in the mainland, including its technological development and improvement, registration and declaration, production, trademark registration and sales in such associated medical indication fields as coronary artery disease, CAD, peripheral arterial disease, PAD, and arteriovenous fistula, AVF.
Salubris will share the revenue with Med Alliance proportionally in line with the sales performance of the product within the agreed period after its introduction in the mainland market, the statement said without giving more details.
Following the share purchase, Hong Kong Splendris will have the right to assign a director to the board of directors of the target company, with a veto over special matters regarding the exclusive license.
The target company is primarily engaged in the research and development and production of high-end cardiovascular interventional therapy equipment. It boasts globally proprietary intellectual property rights of its core solution product used for treatment of diseases like CAD and PAD, said the statement.
This new technology features a substantial improvement in a multitude of aspects including the types of drugs, drug release process and safety compared with its predecessors. The technology is expected to gain approval from the European Union this year, accompanied by an upcoming review by Japan's Pharmaceuticals and Medical Devices Agency, PMDA, and the US Food and Drug Administration, FDA.
The drug-coated balloon, DCB, transports the drug into the locally diseased blood vessel wall by inflating the balloon so as to restrain the proliferation of smooth muscle. With a wide application in treating diseases related to coronary artery and peripheral arterial intervention across Europe and North America, DCB has also entered China, with a variety of products already put into clinical use, the statement added.
Editor: Mevlut Katik