BioProgress announces China supply agreement

BioProgress, a provider of innovative delivery mechanisms for the pharmaceutical oral dosage markets, has granted exclusive distribution rights in China and Taiwan to AXM Pharma for certain formulations of BioProgress' revolutionary Soluleaves oral drug and flavours delivery technology that uses dissolve-in-the-mouth films.

This agreement is for an initial period of two years, which could then be extended by mutual agreement.

The products, which include children's multi vitamins, Vitamin C and Echinacea dissolve-in-the-mouth films, will be manufactured by BioTec Films in Tampa, Florida and will be distributed by AXM Pharma under both the Sunkist brand and AXM Pharma's house brands. Sunkist is America's largest citrus marketing cooperative - its grower-owners are 6,000 citrus producers in California and Arizona, most of whom are small family farmers.

Graham Hind, chief executive of BioProgress, said: 'This agreement with AXM Pharma represents our first foray into the highly lucrative Chinese marketplace in an extremely cost effective manner, and I am confident that it will add at least $2m to our revenues during the initial two year period, with the majority of this flowing straight through to the bottom line. AXM Pharma has a solid track record of marketing and distributing pharmaceutical products throughout China and we are well positioned to benefit from their existing channels to market.'

Peter Cunningham, president and ceo of AXM Pharma, said: 'We are very excited about this agreement with BioProgress, and particularly for Sunkist products where we have exclusive rights in China. AXM has considerable experience in China and we expect the Soluleaves technology to add significant value to our product offering in this vast market.