15 Jun 2015 13:18
Cathay International Holdings Limited
("Cathay", the "Company" or the "Group")
Lansen subsidiary enters into a distribution agreement with Botai as the exclusive distributor of Collagen Injectable Fillers in the PRC
Hong Kong, 15 June 2015 - Cathay International Holdings Limited (LSE: CTI.L), a leading operator and 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), in which the Company has a 50.56% holding, has announced that its indirect wholly-owned subsidiary, Ningbo Lansen Medicine Co. Ltd. ("Ningbo Lansen"), has entered into an Exclusive Distribution Agreement with Botai (an indirectly wholly owned subsidiary of the Company) whereby Botai agrees to appoint Ningbo Lansen as the exclusive distributor of its Collagen Injectable Fillers in the PRC (the "Agreement").
Botai's Collagen Injectable Fillers, branded "Fillderm", is used in non-surgical cosmetic treatments by filling in lines, creases and wrinkles to restore facial contours with skin whitening and rejuvenation effects. Botai is preparing for the mass production of Fillderm in the PRC.
The term of the Agreement will be from 15 June 2015 to 31 December 2016 (subject to any early termination or extension which may be agreed by the parties to the Agreement) (the "Term"). Under the terms of the Agreement, Ningbo Lansen, as the appointed exclusive distributor, may, during the Term, purchase the Collagen Injectable Fillers from Botai on an order-by-order basis. The unit price of the Collagen Injectable Fillers to be purchased by Ningbo Lansen from Botai is agreed at a fixed price throughout the Term and is determined with reference to the prices of comparable collagen injectable fillers products in the PRC market.
The maximum total value of the transactions contemplated under the Agreement for the period ending 31 December 2015 and the year ending 31 December 2016 are estimated to be RMB18.2 million (approximately USD2.9 million, GBP1.9million) and RMB35.8 million (approximately USD5.8 million, GBP3.7 million) respectively.
Mr. Lee Jin-Yi, Chief Executive Officer of Cathay, commented:
"China is the biggest market in Asia and the second largest market globally for dermal fillers by the number of procedures performed. The market for branded dermal fillers in the PRC is expected to grow considerably over the next five years. As the PRC begins to regulate its cosmetic skincare market, which is expected to drive out a number of low grade competitors and products, there exists a timely opportunity to launch Botai's Collagen Injectable Fillers into the market.
Today's agreement is in line with the Company's strategy to create business synergies across the Group. Lansen already has a dermatology product portfolio, which includes Sicorten Plus acquired from Novartis, and Kafumei collagen mask and Yuzhe lines of skincare products which are under exclusive distribution agreements. This Agreement fits into Lansen's strategy of expanding its dermatology product portfolio and enables Botai to tap Lansen's marketing and distribution expertise in launching Fillderm in the market."
-ENDS-
For further enquiries, please contact:
Cathay International Holdings Limited
Eric Siu (Finance Director)
Patrick Sung (Director and Controller)
Tel: +852 2828 9289
N+1 Singer
+44 (0) 20 7496 3000
Aubrey Powell - Corporate Finance
Brough Ransom - Sales
Consilium Strategic Communications
Mary-Jane Elliott/ Matthew Neal / Lindsey Neville
Tel: +44 (0) 20 3709 5702
About Cathay
Cathay International Holdings Limited (LSE: CTI.L) is a main market listed investment holding company and a leading operator and investor in the growing healthcare sector in the People's Republic of China ("PRC"). The Company and its subsidiaries (collectively the "Group") aim to leverage on growth opportunities in the strong and growing domestic demand for high quality healthcare products in the PRC and build its portfolio companies into market sector leaders with competitive edge. Cathay has already demonstrated a strong track record of identifying high-growth potential investment opportunities in this area including: Lansen Group, a leading specialty pharmaceutical company focused on rheumatology and dermatology in the PRC; Haizi, a company engaged in the manufacture, marketing and sale of inositol and its by-product, di-calcium phosphate; Yangling, a company engaged in production and sales of plant extracts for use as key active ingredients in healthcare products; and Botai, a company engaged in collagen products.
The Group employs approximately 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 also has a hotel investment. For more information please visit the Company's website: www.cathay-intl.com.hk
About Lansen
Lansen, whose shares are listed on the mainboard of the Hong Kong Stock Exchange, is a 50.56% owned subsidiary of Cathay. Lansen is engaged in the manufacture, distribution and development of specialty prescription drugs for treatment of autoimmune disorder in rheumatology and dermatology. Lansen is in the leading market position in DMARDs for treatment of rheumatoid arthritis RA in the PRC. Lansen has established an extensive distribution network, covering more than 1,000 hospitals in four municipalities, 25 provinces and cities in the PRC. For more information please visit the Lansen's website: http://www.lansen.com.cn/En/index.asp
About Botai
Botai, an indirect wholly owned subsidiary of Cathay, is a company established under the laws of the PRC which is primarily engaged in the research and development of collagen-based dermal fillers for the cosmetic surgery market. Botai received the first ever domestic production licence for collagen-based dermal fillers by the CFDA.