Access Pharma's (ACCP) $30 million deal with RHEI Pharmaceuticals
Posted by Mike Sweeney on Tue, Sep 21, 2010 @ 10:51
Access Pharmaceuticals, Inc. (OTCBB: ACCP) announced that they signed a $30 million supply agreement for MuGard with RHEI Pharmaceuticals, a a global pharmaceutical business development firm, with special focus on bringing core medicines from the U.S., Europe and Japan into the fast-growing South-East Asian marketplace. 
MuGard is a novel; ready-to-use mucoadhesive oral wound rinse and coating for the management of oral mucositis, a debilitating side effect of many anticancer treatments. Up to 40% of all patients receiving chemotherapy and radiotherapy develop moderate to severe mucositis, and almost all patients receiving radiotherapy for head and neck cancer and those undergoing stem cell transplantation develop mucositis. Updated clinical practice guidelines for the prevention and treatment of mucositis recommend the use of a preventive oral care regimen as part of routine supportive care along with a therapeutic oral care regimen if mucositis develops. The market for the treatment of oral mucositis is estimated to be in excess of $1 billion world-wide.
This announcement continues to position ACCP as one of the few (only?) Small-Cap stocks with revenues and a product that IS on the market. Jeffrey Davis, CEO of Access stated in the press release, "The recent news surrounding MuGard, including this agreement and the initial product purchase order received in the US, underscores the significant revenue potential we believe MuGard will provide our company."
The press release also stated:
"Access will ensure manufacturing capacity of up to a minimum of $30 million of product in the licensed territories. Coinciding with the signing of the above agreement, Access also approved a sub-license agreement between RHEI Pharmaceuticals and Jian An Pharmaceuticals ("Jian An") Limited in Shenzhen, China in an effort to leverage Jian An's extensive sales, marketing and regulatory infrastructure for the launch of MuGard in China and Taiwan.
Jian An is headquartered in Shenzhen, China and has a 25-year history of selling pharmaceutical and other medical products in the China market. Jian An has 1400 sales representatives covering all majors centers in China through 169 sales offices. With Jian An's sales and marketing infrastructure and the supply agreement which will provide up to $30 million of MuGard to the territory, Access Pharmaceuticals' commercialization efforts remain on track in China and its other South East Asian territories. Access retains its existing milestone and royalty structure for the territory. In addition, Access and RHEI have also filed a new patent application in China covering MuGard for the relief and reduction of erythema. This new application is expected to provide additional IP protection as well as the potential for a new indication for MuGard."
They are experts in business development, regulatory approval and clinical development and have a management team that combines a Western approach to pharmaceuticals with a long experience in Europe, North America and South-East Asia. They use their development capabilities and network of preferred commercial partners to help other pharmaceutical companies introduce their products into specific niche markets, such as the European institutional health care market and the Chinese hospital market. RHEI is headquartered in Hong Kong and has operations in Belgium, the US and China. www.rheipharma.com