Sinobiopharma Seeks U.S. Partner for Lead Drug

Apr. 7.09 | About: Sinobiopharma, Inc (SNBP)

Sinobiopharma, Inc. (OTC:SNBP) has entered into an two-year export deal with Kingchem, a US-based international marketing organization that specializes in custom manufacturing and sourcing of pharmaceuticals. Kingchem will act as Sinobiopharma’s agent to find a US partner to co-develop Sinobiopharma's China patented version of Cisatracurim besylate, a non-depolarizing pre-surgical skeletal muscle relaxant, for use in the US. Kingchem will also source buyers in North America and facilitate the export process.

Sinobiopharma markets the drug under the Kutai trademark in China. It is the world’s first formulation of Cisatracurim besylate that can be stored at room temperature – competitors' versions must be kept at 2 to 8 degrees C. Kutai is immediate in onset and longer in duration than its competitors.

Sinobiopharma says Cisatracurium besylate reached an 80% market share in China within 14 months of its late 2006 launch. However, that market is not large. In the six months ended November 30, 2008, Cisatracurium besylate generated $1.8 million in sales, which constituted 92% of Sinobiopharma’s total revenue. Fortunately, margins on the product are high. Cost of manufacturing and sales for the product was only 32% of its revenue during the period.

Disclosure: none.