Note: This is an English version of a press release communicated by NeuroVive 2011-12-15
NeuroVive Pharmaceutical AB (publ) announces the establishment of its Hong Kong subsidiary, NeuroVive Pharmaceutical Asia Limited, to collaborate and partner with Chinese pharmaceutical companies for drug development and commercialization in the large and fast-growing Chinese market.
Since 2010, NeuroVive has been evaluating the Chinese market with the objective of identifying partners for drug development, manufacturing, distribution and sales. As a result of this work and to take advantage of the rapid growth in the Chinese pharmaceutical sector, NeuroVive Pharmaceutical Asia Ltd has been founded together with Foundation Asia Pacific Ltd (FAP) and is owned 70% by NeuroVive Pharmaceutical AB.
"The establishment of a subsidiary in China is an important milestone in NeuroVive´s strategy to identify partners for long-term collaboration in drug development and commercialization for China. The market potential for pharmaceuticals targeting acute neurological conditions in China is significant and growing. The collaboration with FAP has secured an effective process in understanding the Chinese business culture and the market for NeuroVive´s pipeline products and in discussions with local pharmaceutical companies, regulatory authorities and key opinion leaders", comments Mikael Brönnegård, CEO of NeuroVive Pharmaceutical AB.
The pharmaceutical market in China is projected to grow by approximately 20% in dollar terms between 2011 and 2016, the highest rate in the Asia Pacific region. This will bring the market to US$ 150 billion by 2016, equivalent to 1% of GDP. China will then be the largest pharmaceutical market in the Asia Pacific region, overtaking Japan and representing 37% of the region's total pharmaceutical market. In China, there is a huge potential for neuroprotective pharmaceuticals in acute neurological conditions (traumatic brain injury and stroke), where the medical need is significant and the incidence of traumatic brain injury is constantly increasing.
"China is one of the most interesting and expanding drug markets in the world. In China, Sweden has built a strong reputation in the life sciences sector. NeuroVive is a good example of a life sciences company that through its unique R&D and clinical programs will benefit by partnering with local companies in the growing Chinese market. In addition, emerging pharmaceutical companies like NeuroVive can enhance their competitive edge through partnering with innovative, growing pharma companies that have the desire and resources to develop and invest in NeuroVive's drugs for the Chinese market", says Lennart Dreyer, Chairman of FAP.
About Foundation Asia Pacific
Foundation Asia Pacific Ltd (FAP) collaborates with selected partners, concentrating resources and efforts on Asian markets. FAP has an extensive international network and long experience of developing business in Asia and specifically in China and has a solid track record of working with Swedish companies in China. FAP's objective is to accelerate value creation through long term partnerships with selected companies to form local collaborations with leading businesses in emerging markets.
NeuroVive Pharmaceutical AB (publ) is a Swedish drug development company. NeuroVive's primary mission is to develop drugs for the treatment of acute brain injury, reperfusion injury in myocardial infarction and other acute injuries where mitochondrial energy production is critical for clinical outcome. The company is currently sponsoring a phase III clinical trial with its cyclosporin-A lipid emulsion in heart attack patients, and is entering into a phase II-III clinical trial in traumatic brain injury. In addition to the cyclophilin-D program, NeuroVive is developing additional medications treating mitochondrial dysfunction (i.e., reduced or limited energy production), and disorders requiring an increased energy demand such as recovering from extensive surgery and intensive care, and as well conditions in which augmented energy expenditure (e.g. obesity) is important.
NeuroVive Pharmaceutical AB (publ) shares are listed on the Swedish trading platform AktieTorget (www.aktietorget.se). The AktieTorget market is focused on emerging, entrepreneurial businesses and offers an electronic trading system supplied by the OMX Nordic stock exchange in Stockholm, Sweden.