Expands Branded Product Portfolio and Develops New Markets for Gastrointestinal and Respiratory Products
CHINA – 31 October 2019 – Jacobson Pharma Corporation Limited (“Jacobson Pharma” or the “Company”; Stock Code: 2633), a leading company engaging in the research, development, production, marketing and sale of generic drugs and proprietary medicines, announced today that its wholly-owned subsidiary Smiley Sun Limited (“Smiley”) has signed a joint venture agreement (the “JV Agreement”) with Kin Fung Weisen-U Company Limited (“Kin Fung Weisen-U”) to set up a new company (the “Joint Venture”) which will be 50%-owned respectively by Smiley and Kin Fung Weisen-U.
The Joint Venture will distribute and sell certain products of Kin Fung Weisen-U, including the well-recognised gastrointestinal drug “Weisen-U” and the popular nasal spray brand “Flucur Nebuliser” to new markets in the Asia Pacific region. It will create an expanded proprietary medicine platform for the Group in support of its regional market development strategy.
The Joint Venture will also explore and develop respective product line extensions for Weisen-U and Po Chai Pills. Furthermore, it will explore and conduct businesses relating to the supply and distribution of non-prescription drugs as well as food/health supplements of the gastrointestinal and respiratory categories in markets worldwide.
In particular, the Joint Venture will have the first right over Smiley and Kin Fung Weisen-U to acquire brands of gastrointestinal and respiratory drugs, and food/health supplements. The Joint Venture will allow the Group to strengthen presence and penetration in the OTC market segment.
With Kin Fung Weisen-U being a long-standing reputable player in the pharmaceutical industry, Jacobson Pharma believes the Joint Venture will give the Company a sound strategic leverage to broaden its portfolio of gastrointestinal and respiratory drugs, food/health supplements and also to speed up expansion in the Asia Pacific market.