31 Mar 2017 09:50
Cathay International Holdings Limited
("Cathay", the "Company" or the "Group")
Lansen subsidiary enters into a distribution agreement with Botai as the distributor of Collagen Injectable Fillers in China
Hong Kong, 31 March 2017 - 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 50.56% owned subsidiary, Lansen Pharmaceutical Holdings Ltd ("Lansen") (HKEX: 503), has announced that its indirect wholly-owned subsidiary, Ningbo Lansen Medibeauty Tech Ltd. ("Ningbo Lansen Beauty"), a newly established entity by Lansen to engage in the marketing and distribution of medical beauty products, has entered into a Distribution Agreement with Botai (an indirectly wholly owned subsidiary of the Company) whereby Botai agrees to appoint Ningbo Lansen Beauty as the distributor of its Collagen Injectable Fillers in the PRC (the "Agreement").
The term of the Agreement begins on 31 March 2017 ("the Effective Date") and terminates on 31 March 2018, subject to an extension which may be agreed by the parties (the "Term"). Under the terms of the Agreement, Ningbo Lansen Beauty, as the appointed 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 Beauty from Botai under the Distribution Agreement 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 from the Effective Date to 31 December 2017 and period from 1 January 2018 to 31 March 2018 are estimated to be RMB28.6 million (approximately USD4.2 million, GBP3.3 million) and RMB11.7 million (approximately USD1.7 million, GBP1.4 million) respectively.
Botai's Collagen Injectable Fillers, branded "Fillderm", is used in non-surgical cosmetic treatments by filling facial dermal tissue to rectify medium to high level nasolabial folds. By injecting into dermis, the collagen fibre solution plumps up and smoothes the skin to improve wrinkles and fill sunken skin.
Mr. Lee Jin-Yi, Chief Executive Officer of Cathay, commented: "We are pleased that Lansen and Botai have agreed to renew their agreement for the sale of Botai's Collagen Injectable Fillers. This Agreement fits into Lansen's strategy of expanding its cosmeceutical product portfolio and enables Botai to continue leveraging Lansen's marketing and distribution expertise and channel, which we believe will accelerate the market penetration of Fillderm. Today's renewal of the agreement reinforces business synergies across the Group which we believe will lead to greater shareholder value over time."
-ENDS-
For further enquiries, please contact:
Cathay International Holdings Limited Tel: +852 2828 9289
Eric Siu (Finance Director)
Patrick Sung (Director and Controller)
N+1 Singer Tel: +44 (0) 20 7496 3000
Aubrey Powell / Lauren Kettle - Corporate Finance
Brough Ransom - Sales
Consilium Strategic Communications Tel: +44 (0) 20 3709 5702
Mary-Jane Elliott/ Matthew Neal / Lindsey Neville
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.