Milestone Scientific Inc. (NYSEMKT:MLSS) has launched a JV with China National Medicines Corporation Ltd. (Sinopharm [SHA: 600511]) and Yichang Humanwell Pharmaceutical Co. Ltd., which will seek to develop orthopedic and epidural drug delivery instruments. Milestone, based in New Jersey, makes painless and precise injection devices, primarily for dental and dermatological use.
So far, the three parties have signed an "Agreement of Intent" that the partners expect to result in an actual enterprise in Q1 of 2010. The JV’s two China partners will fund the entity with $1.4 million of capital, while Milestone will contribute its CompuFloÂ technology. The JV will adapt the technology to a new indication. Milestone will own 50% of the JV, while its China partners will split the remaining 50%.
CompuFlo is a Computer Controlled Infusion Pump that uses pressure feedback to monitor and regulate the delivery of local anesthesia, medications and other fluids. Its Dynamic Pressure SensingA technology provides visual and audible in-tissue pressure feedback, identifying tissue types to the operator.
When Milestone received 510(k) pre-notification acceptance from the FDA for CompuFlo, it planned to position the product in the market for epidural anesthesia, an indication that carries over to the JV. The JV also intends to use CompuFlo to alleviate arthritic joint pain by injecting anesthesia directly into the joint.
China National Medicines Corporation, or Sinopharm, is China’s largest domestic manufacturer, distributor and marketer of pharmaceuticals and importer of medical devices.
Yichang Humanwell Pharmaceutical Co. Ltd. manufactures anesthetic drugs.