China Bao Tai, Sinopharm and Lianhua Supermarkets to Distribute Oculus' Microcyn(R)-Based Wound Care Solution in China
Provides for Minimum Purchases of $12 Million During Five-Year Agreement
PETALUMA, Calif.--(BUSINESS WIRE)--
Oculus Innovative Sciences, Inc. (NASDAQ:OCLS) today announced that it has entered into an exclusive distribution agreement with China Bao Tai Investment Company, Ltd., for the rights to its Microcyn(R)-based wound care solution in China. The non-irritating, oxychlorine compound technology, which is designed to treat a wide range of pathogens, including antibiotic-resistant strains of bacteria, viruses, fungi and spores, will be packaged under China Bao Tai's private label brand names in China. The five-year agreement provides for minimum purchases of $12 million of Oculus' Microcyn Technology.
China Bao Tai will utilize various sub-distributors for hospitals, independent pharmacies and retail pharmacies. To that end, China Bao Tai has reached agreement with two sub-distributors:
Sinopharm for hospital and pharmacy distribution:
Sinopharm (www.sinopharm.com/en) is China's largest pharmaceutical group. Incorporating research with production and service trade, the company has under its jurisdiction 10 wholly owned subsidiaries or shareholding companies. In 2004, its sales revenue from medicines and medical equipment totaled RMB 18 billion and its imports and exports volume reached $500 million US.
"Being the largest pharmaceutical group in China, we see a multitude of evolutionary technologies coming out of the United States," said Yan Bing, president of Sinopharm. "However, the potent antimicrobial nature of the Microcyn Technology in tandem with its 'safe-as-saline' profile is more than an evolutionary improvement--it redefines the rules of engagement in the anti-infective market."
Lianhua Supermarkets for supermarket distribution:
Lianhua Supermarket Holdings Co., Ltd. (www.lhok.com.cn) is a retail chain operator with retail outlets covering the entire Chinese nation, offering a full range of products through direct operations, franchises, mergers and acquisitions. Lianhua Supermarket operates a total of 3,609 outlets spanning 21 provinces and municipalities across the nation.
Hoji Alimi, Oculus president and chief executive officer, said, "This partnership marks another step forward in our efforts to reduce our international costs while increasing our revenues and allowing our organization to focus our resources on the U.S. clinical trials. China Bao Tai is a major distributor to the Chinese market and we are fortunate to have a partner with such a significant presence in this region. In addition, minimum purchasing requirements specified in the agreement should result in a steady stream of payments to Oculus from China Bao Tai, Sinopharm and Lianhua Supermarkets over the life of the agreement."
Recent Partnerships
In addition to the China Bao Tai agreement, Oculus has finalized two other international partnerships in the past year. These include an agreement with Alkem Laboratories Ltd. of India, the sixth largest pharmaceutical company in that country, which has just successfully concluded the launch of Oxum, an oxychlorine solution for wound treatment based on Oculus' Microcyn Technology. The product is now available for sale in all 22 states in India and Alkem's 850-person direct sales force is in the process of introducing Oxum to over 25,000 practicing physicians and surgeons.
In February of this year, Oculus also announced that it had entered into an exclusive agreement with Dancohr Corporation B.V., a manufacturer and wholesaler of cosmetics, for Dancohr to distribute Courtin(TM) oxychlorine solution (formulated with Oculus' Microcyn Technology) in the U.K., The Netherlands, and other EU member states. This five-year agreement provides for minimum purchases of $10 million US of the Microcyn Technology.
About China Bao Tai Investment Company
China Bao Tai Investment Co., Ltd. is a diversified investment company with a focus on health care, high-tech, new energy sources, and environmental protection. It is registered with the State Administration for Industry and Commerce of the People's Republic of China. China Bao Tai has extensive experience introducing new products and technologies into China and enjoys a productive working relationship with both local and central government agencies.
About Oculus
Oculus Innovative Sciences is a biopharmaceutical company that develops, manufactures and markets a family of Microcyn Technology-based products intended to help prevent and treat infections in chronic and acute wounds. Oculus' platform technology, called Microcyn, is a non-irritating, oxychlorine compound that is designed to treat a wide range of pathogens, including antibiotic-resistant strains of bacteria, viruses, fungi and spores.
Oculus' principal operations are in Petaluma, California, and it conducts operations in Europe and Latin America through its wholly-owned subsidiaries, Oculus Innovative Sciences Netherlands B.V. and Oculus Technologies of Mexico, S.A. de C.V. Our website is www.oculusis.com.
Forward-Looking Statements
Except for historical information herein, the matters set forth in this press release are forward-looking within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by the use of words such as "will be," "should result," "provides," and "designed," among others. These forward-looking statements are based on Oculus Innovative Sciences, Inc.'s current expectations. Investors are cautioned that such forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the Company's business including risks inherent in the development and commercialization of potential products, the risk that scientific data may not be sufficient to meet regulatory standards or receipt of required regulatory clearances or approvals in China, the Company's future capital needs, and its ability to obtain additional funding and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission including the quarterly report on Form 10-Q for the quarter ended December 31, 2006. Oculus Innovative Sciences disclaims any obligation to update these forward-looking statements.
Oculus and Microcyn are trademarks or registered trademarks of Oculus Innovative Sciences, Inc. All other trademarks and services marks are the property of their respective owners.
Source: Oculus Innovative Sciences, Inc.
Released April 26, 2007