Sinobiopharma inks agreement with Lianhuan to co-develop, manufacture and commercialize Eplerenone

Aug 11 2010

Sinobiopharma, Inc. (OTCBB:SNBP) ("Sinobiopharma" or the "Company"), an innovative biopharmaceutical products company with primary operations in China, today announced that the Company, through its wholly-owned subsidiary Dong Ying (Jiangsu) Pharmaceutical Co., Ltd., has signed an agreement with Jiangsu Lianhuan Pharmaceuticals Co., Ltd. ("Lianhuan") to co-develop, manufacture and commercialize Eplerenone, a therapeutic agent formulated to treat high blood pressure and vascular diseases. Sinobiopharma is the first Chinese pharmaceutical company that received the approval from the Chinese State FDA for clinical trial of Eplerenone in China. If successfully commercialized, the Company anticipates that Eplerenone will enjoy multi-year market exclusivity based on its first-to-market status. 

Under the terms of the agreement, upon successful launch of the product, Sinobiopharma will receive 60% of Eplerenone's profits while Lianhuan is entitled to the balance. Sinobiopharma has received authorization from the China State Food and Drug Administration (SFDA) to commence clinical trials. Lianhuan has agreed to execute and fund the cost of clinical development, regulatory applications and manufacturing of Eplerenone. The companies intend to jointly market Eplerenone based on their different geographical strengths in China.  

"We are pleased to collaborate with a high quality, strong partner like Jiangsu Lianhuan," said Dr. Lequn Lee Huang, Chairman and Chief Executive Officer of Sinobiopharma. "We are highly optimistic about Eplerenone and believe that it could be an important growth driver, thanks to our first mover advantage with this compound and high technical barrier which would limit potential competition."