Aerocrine signs distribution agreement with third largest chinese pharmaceutical company
Sep 25, 2012
Solna (Sweden) September 25, 2012 – Aerocrine AB (OMX Nordic Exchange: AERO) today announces the signing of an import and distribution agreement with Shanghai Pharmaceuticals Holding Co., Ltd. (SPH) for Aerocrine’s products for the Chinese market. SPH is the third largest pharmaceutical company in China, with an extensive network of local sales people across China.
The agreement, effective as of September 24, 2012, gives SPH exclusive rights for import and non-exclusive rights for distribution of Aerocrine’s instrument NIOX MINO® and test kits, used for diagnosing and monitoring patients with asthma, on the Chinese market. The previous distribution agreement has been terminated as of August 8, 2012.
SPH is China’s third largest pharmaceutical company with more than 37,000 employees and an annual turnover exceeding 54 Billion RMB (approximately 55 Billion SEK or 8,5 Billion USD). The company, which is partly state owned, manufactures and markets pharmaceutical products and offers pharmaceutical distribution via its own network comprising of 41 subsidiaries and branches. SPH also operates and franchises a network of more than 1,650 retail pharmacies.
“Aerocrine is in a high-growth phase and we are continuously looking into optimizing our distribution and sales. Shanghai Pharmaceutical Holding is one of the largest pharmaceutical companies in China and covers the most important provinces via their large sales forces and distributor networks”. As the number of provinces utilizing “Pay Per Test” (PPT), which is the ability for patients to pay their physicians for our test has increased, we needed a partner of scale to cover that increased geography”, says Scott Myers, Chief Executive Officer of Aerocrine.
Aerocrine’s product, NIOX MINO® is approved by the Chinese authorities for commercialization. The FeNO method is mentioned in the clinical guidelines for asthma in China and has been approved for PPT (Pay Per Test) in 15 of the 32 provinces in China, which means that the doctors are allowed to charge patients for the tests.
“It is very rare that you come across a product that is so beneficial in so many aspects. As a pediatrician I have seen how many patients have uncontrolled asthma and now when using Aerocrine's product, they become better diagnosed and better medicated and improve their quality of life. In the end all of these patients will have positive economic effects for the health care sector as well as the country, so we are proud to be representing Aerocrine”, says Mr Yu Qingliu, General Manager Medical Device & Surgicals of Shanghai Pharmaceutical Holding.
“We believe that the agreement with SPH constitutes an incredible opportunity for Aerocrine and we are very pleased SPH has chosen to add NIOX MINO® to its product range. The Chinese market presents large potential and we see it as one of our absolute key markets for the future. SPH has shown great commitment to date and we look forward to a mutually rewarding relationship in the future”, says Morten Gunvad, VP and Commercial head of the region for Aerocrine.
Aerocrine offers versatile and easy-to-use exhaled Nitric Oxide (NO) monitoring devices for research and clinical applications. Aerocrine’s compact hand-held device is intended for routine measurements, where it can be used to improve the management of asthma and other inflammatory airway conditions in both specialist and primary care clinics. NIOX MINO® offers added advantages for patient care including detecting of eosinophilic airway inflammation, determining the likelihood of corticosteroid responsiveness, monitoring of airway inflammation to determine the potential need for corticosteroid, and unmasking of otherwise unsuspected non adherence to corticosteroid therapy (http://connect.ne.cision.com#_ftn1).
Asthma is a chronic inflammatory disease of the airways characterized by symptoms including cough, wheezing and difficulty in breathing. Asthma is one of this world’s most common and costly diseases, affecting 8-10 % of the world population and always in the top five in terms of costs of chronic diseases. The prevalence of asthma has been gradually increasing over the last 20 years in industrialized countries, at a rate of around 5% per year. Asthma is very often linked to allergic rhinitis: 80% of allergic asthma sufferers also have allergic rhinitis and 40% of patients with untreated rhinitis go on to develop asthma.
Insufficient control of asthma is common and leads to a poorer quality of life and incorrect dosage of medication, effects which in turn lead to significant costs for society. Aerocrine’s instrument NIOX MINO® plays a significant role in effective asthma management.
 (http://connect.ne.cision.com#_ftnref1) An Official ATS Clinical Practice Guideline: Interpretation of Exhaled Nitric Oxide Levels (FeNO) for Clinical Applications Am. J. Respir. Crit. Care Med. 2011 184: 602-615
For more information please contact:
Scott Myers, Chief Executive Officer, AerocrineAB, Phone: +46 768 788 379
Morten Gunvad, VP, EU & Rest of World (RoW), Aerocrine GmBH, Phone: +46 768 669 387
AerocrineABis a medical technology company focused on the improved management and care of patients with inflammatory airway diseases. As the pioneer and leader in technology to monitor and manage airway inflammation, Aerocrine markets NIOX MINO® and NIOX Flex®. Both products enable fast and reliable management of airway inflammation and may therefore play a critical role in more effective diagnosis, treatment and follow-up of patients with inflammatory airway diseases such as asthma. Aerocrine is based in Swedenwith subsidiaries in the U.S., Germanyand the U.K. Aerocrine shares were listed on the Stockholm Stock Exchange in 2007.
Forward-looking statements related to Aerocrine
This press release may contain forward-looking statements, including forecasts of future revenue and operating profit as well as expected business-related events. Such statements are based upon the current beliefs and expectations of Aerocrine’s management and are subject to risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements, due to various factors. Without being exhaustive, such factors include economic situations and business conditions, including legal and product evaluation issues, fluctuations in currencies and demand, changes in competitive factors and reliance on suppliers. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events and except as required by law.
Aerocrine may be required to disclose the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 08:00 a.m. on September 25, 2012.