Asep Medical Holdings signs joint venture agreement with Sansure Biotech
by CM staff
The transaction represents a milestone for Asep and supports its manufacturing and distribution strategy based on global partnerships with companies that offer existing market knowledge and sales channels.
(CNW Group/ASEP Medical Holdings Inc.)
VANCOUVER — Asep Medical Holdings Inc., through its subsidiary Sepset Biosciences Inc. (Sepset), has signed a definitive joint venture agreement (JV Agreement) with Chinese medical diagnostic company, Sansure Biotech Inc. (Sansure), through its subsidiary, Hunan Xiang Jiang Sansure Biotech Fund, L.P. (Sansure Fund).
Sansure Fund is an investment fund formed by Sansure, Changsha Sanway Spring Venture Capital CO., Ltd. (Sanway Spring) and certain other investors. The JV Agreement was signed on October 27.
Under the JV Agreement, the registered capital of the joint venture entity, Hunan Sanway SepSMART Ltd. (SepSMART), which will be based in Changsha, China, will be RMB 50,000,000 (Total Registered Capital) with (a) the Sansure Fund subscribing for RMB 37,500,000.00 (~CAD$ 7 million) thereof, representing 75 per cent of the Total Registered Capital and (b) Sepset deemed to be subscribing for RMB 12,500,000 (~CAD$ 2.4 million) thereof, representing 25 per cent thereof through the contribution of certain patent rights to Sepset’s first generation rapid sepsis test, SepsetER, pursuant to a technology license and collaboration agreement concurrently entered into on October 27 between Sepset and SepSMART.
Formal registration of SepSMART with the applicable regulatory body in China is a condition precedent of the JV Agreement. The License Agreement grants SepSMART the exclusive right to commercialize SepsetER in Mainland China, the Hong Kong Special Administrative Region, the Macao Special Administrative Region and the Taiwan area for a period of eight years and requires SepSMART to pay periodic royalty payments to Sepset on a performance basis.
The Transaction represents a milestone for Asep and supports its manufacturing and distribution strategy based on global partnerships with companies that offer existing market knowledge and sales channels.
“Sansure is one of the largest companies in China with both manufacturing and distribution expertise in PCR-based diagnostic assays, which is the technology we use in our SepsetER test,” said Dr. Robert E. W. Hancock, Founder, CEO and Board Chair of Asep and developer of the sepsis risk assessment technology, SepsetER. “This represents an endorsement of the potential of our assay and its importance to human medicine worldwide, as well as access to one of the largest markets in the world. We look forward to collaborating with the Sansure team as we bring this technology to market in China.”
