AsianScientist (May 20, 2013) – UK-based Vectura Group plc has established Tianjin Kinnovata Pharmaceutical Company Limited in China with two partners: Tianjin KingYork Group Company Limited, a leading Chinese pharmaceutical company and specialist manufacturer of corticosteroid based products, and Zendex Bio Strategy Inc, a private equity investor based in Hong Kong. Completion of the transaction is subject to final Government clearances in China.
Kinnovata will develop, manufacture and commercialize respiratory products for the rapidly growing domestic Chinese market, as well as other regional markets in Asia. The new company will initially distribute Vectura’s Clickhaler® and Duohaler® dry powder inhaler (DPI) technology platforms to address current unmet needs in the Asian asthma and chronic obstructive pulmonary disease (COPD) markets.
Recent estimates suggest the overall incidence of asthma in China is approximately 2.0 percent, representing a patient population of more than 25 million people. COPD is an even bigger challenge, with a patient population of 42 million, and forecasts estimate that this number will increase to nearly 56 million by 2021.
Kinnovata will be an independent company with its own development and manufacturing operations located in Tianjin. KingYork is expected to hold a 50 percent equity share; with Vectura holding 35 percent and Zendex and partners 15 percent. Vectura’s holding is expected to have a nominal value of RMB 140 million (£14.6m) on close. Vectura will also receive royalties through to 2030 on certain products sold by Kinnovata.
KingYork and Zendex are expected to contribute assets of RMB 260 million (£27.1m) including cash of £19.8m, certain technology assets, intellectual property, and land at KingYork’s pharmaceutical business park in Tianjin where Kinnovata will establish its manufacturing facility. Mr. Chris Chan, previously an advisor to Zendex, has been appointed CEO of the Company.
Vectura has been working with KingYork and Zendex since late 2011 on the development of the product pipeline. Vectura is also providing training and other expertise to Kinnovata as the Company prepares to undertake its first Clickhaler® clinical studies in Chinese patients. An application for the import of Asmasal® Clickhaler® (salbutamol) has been filed with the Chinese State Food and Drug Administration (SFDA).
In addition, a separate R&D Cooperation Agreement has been established between Kinnovata and the Shanghai Institute of Pharmaceutical Industry to undertake the development of a number of DPI products on behalf of Kinnovata.
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Source: Vectura Group plc.
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