31 Mar 2014 07:00
Cathay International Holdings Limited
("Cathay" or the "Company")
Acquisition of Sicorten Plus in the PRC
Lansen further expands its product portfolio in the dermatology field in the PRC
Hong Kong, 31 March 2014 - Cathay International Holdings Ltd. (LSE: CTI.L), an investment holding company and a leading investor in the growing healthcare sector in the People's Republic of China (the "PRC"), today announces that its subsidiary Lansen Pharmaceutical Holdings Ltd ("Lansen") (HKEX: 503) has acquired the pharmaceutical product, marketed and sold in the PRC by Novartis under the Sicorten Plus™ brand. Sicorten Plus is used for certain types of skin disease, known as inflammatory skin disease specifically for triclosan-sensitive secondary infection and corticosteroid-responsive dermatitis and eczema diseases. Cathay holds a 50.56% stake in Lansen.
Under the terms of an asset purchase agreement, the total cash consideration comprises an upfront payment of US$8.0 million, plus additional milestone payments of a total maximum US$1.5 million, linked to future sales of Sicorten Plus in the PRC achieved by Lansen. Lansen has paid Novartis the upfront payment, at completion on 28 March 2014, of US$8.0 million.
Sicorten Plus is approved in the PRC for the treatment of corticosteroid-responsive skin diseases such as seborrheic dermatitis, localised neurodermatitis and nummular eczema. Sicorten Plus is established in the market and is well recognized by clinicians as a treatment for triclosan-sensitive secondary infection and corticosteroid-responsive dermatitis and eczema diseases.
The acquisition of Sicorten Plus further strengthens Lansen's position in the dermatology field in the PRC, an area which offers significant growth potential and complements Lansen's leading position in the rheumatology market. The asset purchase agreement was completed after arm's length negotiations between Lansen and Novartis.
Mr. Lee Jin-Yi, Chief Executive Officer of Cathay, commented:"Working with Novartis, a market leader and developer of some of the most innovative drugs in the industry, is another major step forward for us." Lansen's acquisition of this already successful product will complement and broaden Lansen's current dermatology product portfolio in the PRC, which has significant growth potential."
-ENDS-
For further enquiries, please contact:
Cathay International Holdings Limited
Eric Siu (Finance Director) Tel: +852 2828 9289
Patrick Sung (Director and Controller)
Consilium Strategic Communications
Mary-Jane Elliott/ Amber Bielecka / Lindsey Neville Tel: +44 (0) 203 709 5708
About Cathay
Cathay International Holdings Limited (LSE: CTI.L), focused on the People's Republic of China ("PRC"), is an investment holding company and a leading investor in the growing healthcare sector in the PRC. The group employs more than 2,000 people across the PRC, including over 30 specialist corporate and business development staff based at the holding company's offices in Hong Kong and Shenzhen.
Cathay aims to identify investment opportunities with emphasis on high growth healthcare markets and build them into market sector leaders, with a clear exit strategy. Cathay has demonstrated a strong track record of identifying high-growth potential investment opportunities in this area including: Lansen group, China's leading specialty pharmaceutical company focused on rheumatology and dermatology; Haizi group, a company engaged in the manufacture, marketing and sale of inositol and DCP; and the Yangling group, a company engaged in the extract and trading of key active ingredients for healthcare products, including inositol. To complement its healthcare portfolio, Cathay has a research and product development business focused on bringing new products to the growing Chinese market.
Cathay also has a private equity investment arm focused on minority investment opportunities and a hotel investment. For more information please visit the Company's website: www.cathay-intl.com.hk
About Lansen
Lansen, listed on the main board of the Hong Kong Exchange, is a leading pharmaceutical company in China which focuses on the rheumatic specialty prescription western pharmaceuticals for the treatment of autoimmune rheumatic diseases and dermatology indications. Lansen group is engaged in the manufacture, distribution and development of rheumatic drugs, with a leading position in the disease-modifying anti-rheumatic drugs ("DMARDs") market in the PRC. The Lansen group has established an extensive distribution network, covering more than 1,000 hospitals in 25 provinces and four municipal cities. The headquarters for production and administration is located in Ningbo, Zhejiang Province, the PRC, with modern production facilities occupying an area of 64,000 square meters. Apart from the Chinese Government's GSP certification, the Lansen group's operating facilities are GMP-certified by the State Food and Drug Administration and adhere to stringent and closely monitored quality assurance and safety control processes. One of the group's key business strategies is to capture appropriate market opportunities to widen its existing product portfolio and thereby generate new sources of revenue and to achieve economies of scale. For more information please visit Lansen's website: http://www.lansen.com.cn/En/