The Straits Times / The Business Times News on AsiaPharm

AsiaPharm signs Italian drug deal

Jan 12, 2005
The Business Times

CHINA-BASED pharmaceutical company AsiaPharm Group's main subsidiary is planning to form a strategic alliance with an Italian company.

Shandong Luye Pharmaceutical Co Ltd has signed a letter of intent with Biomedica Foscama - an Italian pharmaceutical company specialising in injection drugs - to jointly develop, manufacture and distribute Biomedica's drugs in Asia and Europe.

Under the proposed deal, the Italian outfit will grant AsiaPharm an exclusive right to distribute the Reduced Glutathione Injection drug, also known as TAD, in South-east Asian countries like Singapore, Malaysia, Indonesia, Thailand, Vietnam and the Philippines.

Both companies plan to collaborate to manufacture the drug in a bid to leverage on the lower cost of manufacturing.

TAD is used for the treatment of various liver diseases which are alcohol-related, drug toxicity as well as irradiation reaction and damage. It is also used with anti-cancer drugs for therapeutic purposes.

The proposed deal also calls for Biomedica to grant AsiaPharm an exclusive distributorship for the injection drug commonly known as Esafosfina, in Asia, with the exclusion of China.

In addition, the two companies plan to jointly develop a drug used for the treatment of liver diseases.

Besides the distribution of leading medicines, AsiaPharm will be working with Biomedica to manufacture and market generic injection drugs.

The two firms will also be combining their efforts to develop a new drug that is commonly used in diabetic complications.