21 Nov 2012, BioSpectrum Bureau , BioSpectrum
Singapore: Sihuan Pharmaceutical entered into a collaboration agreement with NeuroVive Pharmaceutical to develop two innovative products, CicloMulsion and NeuroSTAT, which are used for the treatment of heart reperfusion injuries and traumatic brain injuries respectively.
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 know how in connection with the products to pass clinical trials. Both CicloMulsion and NeuroSTAT reach international standards, and they are currently undergoing phase II and III 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 cardio vascular market is growing at an compound annual growth rate of more than 20 percent and is the largest segment in China's pharmaceutical market.
Sihuan Pharmaceutical shall make upfront and milestone payments to NeuroVive in respect of CicloMulsion and NeuroSTAT respectively. In addition, the company shall pay a royalty representing 10 percent 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, 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."