Sihuan Pharmaceutical Holdings Group Ltd. , a pharmaceutical company with a large cardio-cerebral vascular (“CCV”) drug franchise in China’s prescription market, announced that it has entered into a collaboration agreement with NeuroVive Pharmaceutical AB, an 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.
In accordance with 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 for CicloMulsion® and NeuroSTAT® respectively. In addition, it will also 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, “This 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 Brönnegård, CEO of NeuroVive, said, “Our agreement with Sihuan is a transformational event for NeuroVive. It provides strong validation of the huge potential of mitochondrial medicine, 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, (it)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 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 traumaticbrain injuries, stroke, spinal cord injuries and heart attacks) and neurological conditions through mitochondrial protection.
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