ProMetic signs deals with Shenzhen Hepalink Pharma to expand in Asia

Canada’s ProMetic Life Sciences (TSX: PLI) has signed two strategic agreements with China-based Shenzhen Hepalink Pharmaceutical. The commercial agreement relates to an R&D project based on ProMetic's proprietary protein technologies and includes $11 million in licensing fees and milestone payments to ProMetic, of which $2 million is payable upfront. In addition, ProMetic shall receive further funding for product development activities to be performed on behalf of Hepalink, expected to be initiated in the fourth quarter of 2012.

This joint R&D program is designed to provide Hepalink with proprietary bioprocesses as part of its product expansion and diversification activities. The successful completion of these development activities are expected to lead to a subsequent long-term agreement for the exclusive manufacture and supply by ProMetic of the relevant affinity resin.

"This new commercial agreement follows the recent operational success achieved with China National Biotec Group (CNBG) and strategic agreement with Taiwan based Hematech BioTherapeutics. This represents yet another significant future revenue stream that will play a key role in achieving our Asian markets penetration strategy," stated Pierre Laurin, president and chief executive of ProMetic.