Dragon Pharmaceuticals Announces Acquisition of TPO Production Rights

Nanjing Huaxin Biotech Co., Ltd. has acquired co-development rights to a Pichia yeast culture system for the production of TPO (thrombopoietin) from Kelong Industrial Co., Ltd, a Chinese company. Dragon Pharmaceuticals, which holds a 75% equity interest in Nanjing Huaxin, has announced the acquisition, highlighting the potential for a higher yield in TPO production. TPO is a blood growth factor critical for platelet production, essential in the process of haemostasis and blood clotting.

Key Takeaways:

• Dragon Pharmaceuticals has acquired a 75% equity interest in Nanjing Huaxin Biotech Co., Ltd. through its subsidiary Kelong Industrial Co., Ltd.
• Nanjing Huaxin has developed a Pichia yeast culture system for the production of TPO, which is expected to have a higher yield than the mammalian CHO cell line used by Genentech.
• Pre-clinical and animal studies required for permission to start human clinical trials in China have been completed.
• If approved, Dragon Pharmaceuticals will enjoy exclusive marketing rights for TPO produced from a yeast culture system for 15 years in China.
• The Pichia yeast culture system for TPO production has not been used anywhere in the world, categorizing Dragon's TPO as a Class I new drug in China.
• The company plans to utilize its existing production facilities at Nanjing Huaxin and anticipates its TPO product could be ready for marketing within two years.

Statistics:

• 75%: Equity interest held by Dragon Pharmaceuticals in Nanjing Huaxin Biotech Co., Ltd.
• 15 years: Exclusive marketing rights for TPO produced from a yeast culture system granted to Dragon Pharmaceuticals in China.
• 2000: Year in which the announcement was made.
• 18-36 months: Projected timeframe for TPO product development and commercialization.

Sources:

• Dragon Pharmaceuticals Inc. (OTCBB:DRUG), May 3, 2000
• Press Release: Dragon Pharmaceuticals Inc. Announces Acquisition of TPO Production Rights