ReceptoPharm and Nanogene to set up JV

Nutra Pharma, a Florida, USA-based biotechnology company that is focussed on developing drugs for the treatment of HIV and multiple sclerosis, says its drug discovery division, ReceptoPharm, has signed a non-binding agreement with China's Zhong Xin Dong Tai, also known as Nanogene Biotechnology, to establish a joint venture in the country. The firm noted that the new company would undertake the development of its antiviral drug RPI-MN for the local market.

Nutra Pharma explained that RPI-MN, which is its lead product candidate, inhibits the entry of several viruses that are known to cause severe neurological damage in diseases such as rabies, AIDS and encephalitis. The firm added that the drug is currently being assessed as a treatment for HIV.

Under the terms of the proposed deal, Nanogene, which would have a controlling interest in the new enterprise as dictated by Chinese law, will provide raw materials for development, as well as fund the product's clinical preliminary work. In return, RecetoPharm has agreed to supply bulk quantities of the compound for use in trials, but will retain ownership of the drug as well as all intellectual property rights. Financial details of the accord were not made public.