NeuroVive Pharmaceutical will redirect its Taiwan-based subsidiary’s research resources and activities to the parent company NeuroVive Pharmaceutical.
Continued operations in the Taiwan subsidiary, established in 2014, will be sold to the current Taiwanese shareholders, said the company in its press release issued on Wednesday.
Accoring to agreement, NeuroVive Pharmaceutical will receive approximately Eur 0,5 million before transaction costs. In addition, NeuroVive and its collaboration partner Foundation Asia Pacific Ltd. will reacquire the Hong Kong based subsidiary, NeuroVive Pharmaceutical Asia Ltd., which holds the Asian territorial licensing rights for NeuroSTAT and the agreements with the Chinese company Sihuan Pharmaceutical and Sanofi Korea.The Hong Kong company will be owned by NeuroVive Pharmaceutical AB (approx. 82.5%) and Foundation Asia Pacific Ltd. (approx. 17.5%). On closing, other assets previously licensed to the NeuroVive Asia group will be returned to NeuroVive Pharmaceutical AB, the company said.
In line with the company’s recently implemented dual business model, with both an increased focus on early projects for large specialist indications for out-licensing at the preclinical stage and proprietary clinical development of orphan disease projects, resources in the Taiwan-based subsidiary will now be redirected and concentrated to R&D activities in the parent company.
“This decision is completely in line with the new corporate strategy and will enable us to further focus on developing the company’s project portfolio by releasing resources to progress the early R&D projects as efficiently and effectively as possible”, said Erik Kinnman, CEO at NeuroVive.