PHARMACEUTICAL company iX Biopharma, through its wholly-owned subsidiary, has struck an agreement with China Resources Pharmaceutical Commercial Group Co (CRPCG) for the licensing, supply and distribution of Wafesil, a sublingual sildenafil wafer for the treatment of male erectile dysfunction, in China.

 

In a bourse filing on Thursday, the company said that the new licensing agreement runs for an initial term of 10 years and will " allow both parties to tap on their collective strengths and capabilities to capture the vast opportunities in the China market" .

 

The agreement marks the first deal between CRPCG and iX Biopharma following the execution of a strategic cooperation framework agreement by both parties previously announced in April 2021. It aims to engage in all-round cooperation including licensing and joint venture activities for iX Biopharma' s sublingual pharmaceutical and nutraceutical products in China, the company said.

 

Under the terms of the licensing agreement, CRPCG will be responsible for obtaining the marketing authorisation for Wafesil from the relevant authorities in China.

 

Upon registration, iX Biopharma will manufacture and supply Wafesil to CRPCG at a mutually agreed price. CRPCG will exclusively market and distribute the product in China. The agreement further adds that CRPCG needs to make certain upfront and licensing fee payments to iX Biopharma prior to the commercialisation of Wafesil.

 

Wafesil is a new dose form of sildenafil, formulated using iX Biopharma' s patented sublingual drug delivery technology, WaferiX. It is a registered pharmaceutical medicine in Australia.

 

Eva Tan, chief commercial officer of iX Biopharma said: " China is one of the world' s fastest-growing healthcare markets and second largest healthcare market in the world. The deepening of our relationship with CRPCG in this manner is a significant step forward for iX Biopharma, and we believe that this will be the first of many more deals to be forged between us."

 

iX Biopharma has narrowed its loss for the year ended June 30 by 22% to $8.2 million, thanks to better gross margins and higher sales of $1.7 million, up 77% over the preceding FY2020.

 

The company&rsquo s top-line was boosted by robust demand for its nutraceutical products and WaferiX-based product development services from pharmaceutical companies in China. 

 

The company was able to achieve this even though there were periods of border closures in Australia during the financial year, which impeded its plans to expand its manufacturing capacity and led to constraints on its production capacity. 

 

The demand in China grew thanks to careful spent on marketing which helped drive awareness and interest.

On the back of the overall higher level of business activity, its gross loss narrowed by 35% to $0.4 million for FY2021 and its gross loss margin was slashed to 22% from 60% in FY2020.

 

In 2HFY2021, the company has installed new equipment that has boosted its wafer production capacity by up to six times.

 

In this past year, the company has undertaken other market development activities such as signing distribution contracts with partners in Brazil and New Zealand, and is working to introduce the product to other markets including the USA and UK. 

 

It is also gearing up to boost its presence on China&rsquo s ecommerce platforms so as to drive sales via this avenue.

In an indication of support from investors, its $9.6 million rights issue in July 2021 was 192.6% subscribed. 

 

Proceeds raised from this fund-raising exercise will be used to reinforce its balance sheet in preparation for future growth.

 

  IX Biopharmarights issue closed on July 19 with valid acceptances and valid excess applications amounting to 196.2 per cent of the shares available for subscription, the speciality pharmaceutical company said in a bourse filing on Monday.

 

Some 48.8 million ordinary shares will be issued at an issue price of S$0.20 per share, to raise net proceeds of S$9.56 million.

 

The issue price represents a discount of 18.4 per cent to the counter' s closing price of 24.5 Singapore cents on June 8, which was the shares' last trading day on the Singapore Exchange (SGX) prior to the announcement of the rights issue.

 

Net proceeds will be used to fund manufacturing and marketing activities for the group' s products and for general working capital purposes, the group said.

 

iX Biopharma expects the new shares will be listed and quoted on the SGX Catalist board on or around July 28.