Oslo, 13. June 2016 - Navamedic ASA (OSE: NAVA), the Norwegian medtech and pharmaceutical products company, has today entered into an 8-year agreement with TopRidge Pharma Limited, a subsidiary of Shanghai-listed Tibet Rhodiola Pharmaceutical Holding Co, for distribution of angina prevention medicine, Imdur®, in European markets.
The agreement represents expected annual revenues of NOK 70-100 million. As a part of the strategic partnership, TopRidge Pharma (Ireland) Limited, a wholly owned subsidiary of TopRidge Pharma Limited, will acquire 1,417,522 new shares in Navamedic, and become a major shareholder in the company. Furthermore, the parties have agreed to collaborate on the launch of Sippi in the Chinese market.
"Navamedic is very pleased to announce this strategic partnership and long term distribution agreement with TopRidge Pharma, which represent significant opportunities for the company going forward. We are hitting the ground running with an initial European distribution start of Imdur® scheduled for the late summer, and will work at full pace to position the product in our Nordic, Benelux and Baltic networks through 2016. We expect to see an effect on revenues during the second half of 2016. Future products, planned for launch in Europe from TopRidge Pharma and its parent company, will also be offered to Navamedic on a first rights basis," says Tom Rönnlund, Chief Executive Officer of Navamedic.
Imdur®, used for the prevention of angina in patients with heart disease, was developed by AstraZeneca and first launched in Europe in 1985. In Q1 2016, Tibet Rhodiola Pharmaceutical Holding Co (Tibet Pharma) acquired the global asset of Imdur®, outside the U.S. Under the agreement with Navamedic, TopRidge Pharma (Ireland) Limited is providing a line of credit totalling USD 1.6 million, to support a potential future expansion of Navamedic's product distribution.
"With a significant annual revenue potential of NOK 70-100 million expected from Imdur, Navamedic has started preparations for any potential changes to the company's partnership and product mix. This includes an ongoing dialogue regarding the distribution contract with Aspen Pharma, which currently has a term into the first half of 2017 with low probability for renewal. The new partnership with TopRidge Pharma is different from our other distribution agreements, and represents an exciting business model and opportunity for future growth for Navamedic," says Rönnlund.
To further substantiate the strategic partnership, Navamedic and TopRidge Pharma (Ireland) Limited have entered into an agreement, under which Navamedic will issue 1,417,522 new shares to TopRidge Pharma (Ireland) Limited at NOK 8.00 per share.
"The agreement lays the foundation for strong cooperation and a long-term strategic partnership. In addition, we have entered a Letter of Intent with TopRidge Pharma for a collaboration to launch Sippi® in China. This partnership can significantly accelerate Sippi's entry into the Chinese market. Coupled with the Imdur distribution agreement and potential inflow of additional products and partnerships, Navamedic is creating a solid basis for our operational performance going forward," says Rönnlund.
For further information, please contact:
Tom Rönnlund, CEO, Navamedic. Telephone +46 727 320 321.
About TopRidge Pharma (Ireland) Limited investment in Navamedic ASA
In addition to the strategic distribution agreement for Imdur® in the Nordic, Baltic and Benelux regions the parties have entered into an investment agreement, under which Navamedic will issue 1,417,522 new shares to TopRidge Pharma (Ireland) Limited at NOK 8.00 per share, corresponding to approximately 13% of the company's issued share capital. The new shares will be subject to a lock-up period of 12 months. The new shares issued to TopRidge Pharma (Ireland) Limited will be issued on a separate ISIN and not be tradable on the Oslo Stock Exchange until the company has prepared and published a listing prospectus to be approved by the Financial Supervisory Authority of Norway (Finanstilsynet), expected by beginning of August 2016. A representative of TopRidge Pharma (Ireland) Limited, will be proposed elected as a new member of the company's board of directors at the company's ordinary general meeting to be held on 20 June 2016.
Navamedic ASA is a Norwegian medtech and pharmaceutical products company, delivering products to patients, hospitals and pharmacies in Northern European markets. Navamedic is listed on the Oslo Stock Exchange (ticker: NAVA). www.navamedic.com
About Tibet Rhodiola Pharmaceutical Holding Co
Tibet Rhodiola Pharmaceutical is a joint stock company established in the PRC with limited liability. It was established in 1999 and its shares are listed on the Shanghai Stock Exchange (Stock Name: Tibet Pharmaceutical, Stock Code: 600211). It is the first high-tech pharmaceutical company in Tibet and also a modern company which combines the research and development, production and sales of Tibetan medicine, herbal, chemical as well as biological products. Its product portfolio covers biologicals, Tibetan medicines, Traditional Chinese Medicines and chemical drugs, mainly including XinHuoSu, Nuodikang, Shiwei Dida capsule, etc. China Medical System Holdings Ltd (listed on Hong Kong stock exchange, Stock Code: 867) is the largest shareholder of Tibet Pharmaceutical.
Imdur® is a mature medicine for the prevention of angina in patients with heart disease, based on an oral extended-release formulation of isosorbide mononitrate (ISMN), indicated for the prevention of angina pectoris due to coronary artery disease. ISMN is an organic nitrate and the major biologically active metabolite of isosorbide dinitrate (ISDN). It is a vasodilator with effects on both arteries and veins. Imdur® was developed by AstraZeneca and first launched in Europe.