Miraculins Signs Letter of Intent With Beijing-Based Cachet Pharmaceutical to
Negotiate Licensing Rights for SCOUT DS(R) Diabetes
Test in China
90-Day Negotiation Period Commences with State-Controlled
Pharmaceutical and Medical Device Distributor to Chinese Hospitals
WINNIPEG, MANITOBA -- (Marketwired) -- 09/30/13 -- Miraculins Inc.
(TSX VENTURE:MOM), ("Miraculins" or the "Company") a medical
diagnostic company focused on acquiring, developing and
commercializing diagnostic and risk assessment technologies for unmet
clinical needs, today announces the execution of a non-binding Letter
of Intent (the "LOI") with Cachet Pharmaceutical Co. Ltd. ("Cachet"),
a 4 Billion RMB market cap ($654 Million USD) wholesale/retail drug
distribution and medical device distributor, with over 2.5 Billion
RMB ($408 Million USD) in annual sales. Cachet is majority
state-owned and listed on the Shenzhen Stock Exchange (stock name:
Cachet; stock code: 002462). The LOI provides Cachet with a
non-exclusive ninety-day negotiation period to acquire an exclusive
license to commercialize the Company's SCOUT DS(R) Non-Invasive
Diabetes Screening Test in Mainland China, towards addressing the
devastating growth of that country's diabetes epidemic and the
corresponding economic impact to its healthcare system. There are
already 114 million people in China with diabetes.
The goal of the negotiation period is to engage in earnest and
accelerated discussions regarding the establishment and execution of
a definitive licensing agreement, which would be subject to
satisfactory due diligence and board approval by both parties
respectively. Under the terms of the LOI, the parties have
acknowledged the general terms that could form part of a formalized
agreement should they reach that stage in their negotiations, which
will abide by Chinese regulations governing Chinese public companies
and reflect anticipated market demand within China. The agreement
could include Cachet providing to Miraculins an upfront payment,
on-going royalties, funding for regulatory approval, and a commitment
to conduct and fund market development activities. Miraculins would
be responsible for the manufacture and delivery of SCOUT DS(R)
systems to Cachet for distribution in China and would provide
consultation and support for all related business activities.
Miraculins will be sending executives to China in October, including
Company President and CEO, Christopher J. Moreau, to meet with the
senior executive team at Cachet including the company's CEO Mr. Shuai
Xu, with the goal of advancing a strong working relationship and the
licensing agreement negotiations.
"We have been very encouraged by our discussions to date with Cachet
representatives," said Christopher J. Moreau, President and Chief
Executive Officer, Miraculins Inc. "As a major distributor of
international brands throughout the country such as Bayer, Novartis,
Johnson & Johnson and Medtronic, Cachet clearly has the demonstrated
capability, as well as the government participation and backing, to
successfully capitalize on the potential of the SCOUT DS(R)
technology in China. We are excited to enter into this period of
Miraculins will provide a market update on the negotiations within or
upon the conclusion of the ninety day negotiation period.
About Cachet Pharmaceutical Co. Ltd.
Founded in 1998, Cachet Pharmaceutical Co., Ltd. is a majority
state-owned stock company with a market capitalization of 4 Billion
RMB ($654 Million USD). Cachet's largest shareholder, the China Youth
Industrial Development Corporation, belongs directly to the Central
Committee of the Communist Youth League of China. On August 18, 2010,
Cachet went public on the Shenzhen Stock Exchange (stock name:
Cachet; stock code: 002462). Cachet Pharmaceutical Co., Ltd. engages
in the wholesale and retail sale of pharmaceutical products in China.
The company is involved in the supply of medicines to hospitals;
wholesale of biological products, medical instruments, and
traditional Chinese medicines; and pharmaceutical logistics. It
additionally owns 150 chain stores in Beijing that sell medicines,
health care food, medical instruments, cosmetics, daily necessities,
and traditional Chinese medicines.
Diabetes in China
A recent nationwide survey conducted in China indicates that 11.6% of
adults or 114 million people have diabetes. The data, published in
the Journal of the American Medical Association, additionally
projects that 40% of 18-20 year olds and 47% of 30-39 year olds in
China are pre-diabetic, and that 493.4 million people have higher
than normal blood glucose levels (as diagnosed by fasting blood
glucose and Hba1C testing). According to the World Health
Organization, over time diabetes can damage the heart, blood vessels,
eyes, kidneys, and nerves and it increases the risk of heart disease
and stroke (50% of people with diabetes die of cardiovascular disease
- primarily heart disease and stroke). Combined with reduced blood
flow, neuropathy (nerve damage) in the feet increases the chance of
foot ulcers, infection and eventual need for limb amputation.
Diabetic retinopathy is an important cause of blindness, and occurs
as a result of long-term accumulated damage to the small blood
vessels in the retina. One percent of global blindness can be
attributed to diabetes, diabetes is among the leading causes of
kidney failure and the overall risk of dying among people with
diabetes is at least double the risk of their peers without diabetes.
The financial burden of diabetes and its complications is also
About the SCOUT DS(R) System
The SCOUT DS(R) system, is the first non-invasive diabetes screening
system designed to provide a highly sensitive and convenient method
for screening for pre-diabetes and type 2 diabetes based on the
presence of diabetes-related biomarkers found in skin. Unlike current
screening methods, a SCOUT DS(R) test requires no blood draw, no
fasting, and no waiting for a lab result. The product has been used
and validated in thousands of patients around the world.
About Miraculins Inc.
Miraculins is a medical diagnostic company focused on acquiring,
developing and commercializing non-invasive technologies for unmet
clinical needs. A significant number of promising diagnostic
opportunities remain un-commercialized because of the sizable gap
between the discovery stage, when research institutions are typically
involved, and the commercialization stage, when the larger commercial
enterprises become interested. Miraculins has direct experience in
bridging this gap. The Company's PreVu(R) POC Test is a revolutionary
new coronary artery disease risk assessment technology that measures
cholesterol levels in a patient's skin non-invasively, painlessly and
without the need for fasting. The Company's SCOUT DS(R) system is the
first non-invasive diabetes screening system designed to provide a
highly sensitive and convenient method for screening for pre-diabetes
and type 2 diabetes based on the presence of diabetes-related
biomarkers found in skin. Unlike current screening methods, a SCOUT
DS(R) test requires no blood draw, no fasting, and no waiting for a
lab result. The product has been used and validated in thousands of
patients around the world. The Company's preeclampsia program is
partnered with Alere Inc., one of the world's largest diagnostic
companies. For more information visit www.miraculins.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in
the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Caution Regarding Forward-Looking Information
Certain statements contained in this press release constitute
forward-looking information within the meaning of applicable Canadian
provincial securities legislation (collectively, "forward-looking
statements"). These forward-looking statements include statements
regarding entering into and executing a definitive licensing
agreement. These forward-looking statements relate to, among other
things, our objectives, goals, targets, strategies, intentions,
plans, beliefs, estimates and outlook, including, without limitation,
our anticipated future operating results, and can, in some cases, be
identified by the use of words such as "believe," "anticipate,"
"expect," "intend," "plan," "will," "may" and other similar
expressions. In addition, any statements that refer to expectations,
projections or other characterizations of future events or
circumstances are forward-looking statements.
These statements reflect management's current beliefs and are based
on information currently available to management. Certain material
factors or assumptions are applied in making forward-looking
statements, and actual results may differ materially from those
expressed or implied in such statements. Important factors that could
cause actual results to differ materially from these expectations
include, among other things: Miraculins' early stage of development,
lack of product revenues and history of operating losses,
uncertainties related to clinical trials and product development,
rapid technological change, uncertainties related to forecasts,
competition, potential product liability, additional financing
requirements and access to capital, unproven markets, supply of raw
materials, income tax matters, management of growth, partnerships for
development and commercialization of technology, effects of insurers'
willingness to pay for products, system failures, dependence on key
personnel, foreign currency risk, risks related to regulatory matters
and risks related to intellectual property and other risks detailed
from time to time in Miraculins' filings with Canadian securities
regulatory authorities, as well as Miraculins' ability to anticipate
and manage the risks associated with the foregoing. Additional
information about these factors and about the material factors or
assumptions underlying such forward-looking statements may be found
in the body of this news release. Miraculins cautions that the
foregoing list of important factors that may affect future results is
not exhaustive. When relying on Miraculins' forward-looking
statements to make decisions with respect to Miraculins investors and
others should carefully consider the foregoing factors and other
uncertainties and potential events.
These risks and uncertainties should be considered carefully and
prospective investors should not place undue reliance on the
forward-looking statements. Although the forward-looking statements
contained in this press release are based upon what management
believes to be reasonable assumptions, Miraculins cannot provide
assurance that actual results will be consistent with these
forward-looking statements. Miraculins undertakes no obligation to
update or revise any forward-looking statement.
PreVu(R) and SCOUT DS(R) are registered trademarks of Miraculins Inc.
All Rights Reserved. 2013.
Christopher J. Moreau
President & CEO
Press spacebar to pause and continue. Press esc to stop.