Unigene To Form Chinese JV

Unigene Laboratories of the USA has signed a letter of intent regarding the establishment of a joint venture with the Qingdao General Pharmaceutical Company and its Huanghai factory, which should enable calcitonin produced in China with Unigene's technology to become a significant product in the growing Chinese pharmaceutical market.

The joint venture will have the exclusive right to manufacture and sell injectable and nasal formulations of the recombinant calcitonin. Under the terms of the agreement, the Chinese company would finance the project and assume responsibility for constructing and operating a US Food and Drug Administration-approved manufacturing facility, obtaining product approvals and selling the final product.

Unigene would provide the technology and training and would supply its proprietary enzyme at a discounted price. Unigene would also receive a combination of fixed fees and minimum annual royalties based upon end-product sales. Calcitonin will be Unigene's first marketed product, used to treat osteoporosis and other degenerative bone diseases.