Immuron signs agreement to sell Travelan in China
THE ROADHOUSE PHARMACY: Immuron Limited (ASX: IMC) has entered into an agreement with Linker Holdings Limited, a Beijing company with offices in Hong Kong, for the sale of Travelan in the Peoples’ Republic of China, Hong Kong and Macau.
Under the agreement, Linker will have the exclusive rights to market, distribute and sell Travelan as a functional food and a dietary supplement in its licensed territory and has undertaken to contractually comply with specified annual minimum purchase obligations.
Immuron said Linker’s minimum purchase obligations represent a notable increase in the volume of the company’s Travelan business and will be measurable in multiples of the company’s current volumes, adding that the Chinese market has the potential to eclipse the combined global sales of Travelan in all other regions.
The company talked up the scale of the opportunity the deal presents, indicating the success many products marketed in China experience, often being transformative for the originator company.
Immuron said the commencement of this increase in Travelan sales is expected to occur as soon as Linker attains regulatory approval from the Chinese Food and Drug Administration (CFDA).
“Travelan is currently available in Australia and Canada,” Immuron chairman Dr Roger Aston said in the company’s announcement to the Australian Securities Exchange.
“China represents a very large market opportunity for the expansion of our global Travelan franchise.
“China is a large and increasingly wealthy market, in which gut and liver health are important concerns.
“Additionally, the South East Asian cultures’ pre-disposition to, and appreciation of, the benefits of colostrum strongly positions Travelan in this market.
“Linker has a team with a proven record of successfully commercialising a range of products, which gives us great confidence on the potential of Travelan in the Chinese market and we expect that the strength of this market combined with minimum purchase order requirements will result in substantial growth in Immuron’s revenue over the coming two-to-three years.”
Website: www.immuron.com