Miraculins, a medical diagnostic company focused on acquiring, developing and commercializing diagnostic and risk assessment technologies for unmet clinical needs has executed of a non-binding Letter of Intent (the “LOI”) with Cachet Pharmaceutical Co. Ltd. (“Cachet”), a 4Billion RMB market cap ($654 Million USD) wholesale/retail drug distribution and medical device distributor, with over 2.5 Billion RMB ($408 Million USD) in annual sales. Cachet is majority state-owned and listed on the Shenzhen Stock Exchange (stock name: Cachet; stock code: 002462). The LOI provides Cachet with a non-exclusive ninety-day negotiation period to acquire an exclusive license to commercialize the Company’s SCOUT DS® Non-Invasive Diabetes Screening Test in Mainland China, towards addressing the devastating growth of that country’s diabetes epidemic and the corresponding economic impact to its healthcare system. There are already 114 million people in China with diabetes.
The goal of the negotiation period is to engage in earnest and accelerated discussions regarding the establishment and execution of a definitive licensing agreement, which would be subject to satisfactory due diligence and board approval by both parties respectively. Under the terms of the LOI, the parties have acknowledged the general terms that could form part of a formalized agreement should they reach that stage in their negotiations, which will abide by Chinese regulations governing Chinese public companies and reflect anticipated market demand within China. The agreement could include Cachet providing to Miraculins an upfront payment, on-going royalties, funding for regulatory approval, and a commitment to conduct and fund market development activities. Miraculins would be responsible for the manufacture and delivery of SCOUT DS® systems toCachet for distribution in China and would provide consultation and support for all related business activities.
A 90 day period of negotiation will be taking place.
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