In a major win for SciGen (ASX: SIE) – details have emerged of the exclusive supply and distribution agreement inked with by its holding company, Bioton SA – with major pharmaceutical company Bayer Schering Pharma AG.
The deal is for SciGen’s human insulin product, Scilin® in China. The agreement covers the territory of the People’s Republic of China between SciGen, Bioton and Bayer Healthcare Company Ltd.
SciGen has entered into a profit sharing agreement with Bioton. Under the profit sharing agreement SciGen will receive a share of the revenues from the S & D agreement with Bayer. This new series of agreements are expected to be more beneficial for SciGen than its previous distribution agreement in China.
According to current data, there are approximately 40 million diabetic patients in China. Insulin is the fastest growing segment of the Chinese diabetes market in China with projected annual growth rates of more than 40 percent.
SciGen will be entitled to a share in the profit resulting from the supply of insulin by Bioton on the basis of the agreement with Bayer.
SciGen estimates that the aggregate revenue of its share in the profits from the agreement with Bioton, through the entire period of its duration shall amount to between USD 225 -270 million.
Chairman and CEO of SciGen, Adam Allerhand said, “the agreement represents a significant step for SciGen. Working with Bayer will make Scilin®available to diabetes patients throughout China, a growing and increasingly important market."
SciGen Ltd is 90.5% owned by Bioton S.A. It is a Singapore Biopharmaceutical Company involved in co-developing and marketing genetically engineered biopharmaceutical products for human healthcare.