30th Jun 2016 07:52
LONDON (Alliance News) - Network technology and medical laboratory systems company BATM Advanced Communications Ltd on Thursday said it has entered an investment agreement and strategic joint venture with China's Egens Biotechnology Co Ltd.
Under the agreement, Egens, which focuses on combining biological material development and diagnostic reagent manufacturing, will buy around USD3.0 million worth of new shares in Adaltis, a wholly-owned subsidiary of BATM. It will have the option to buy another 10% of Adaltis through to 2017.
Adaltis and Egens have been working together since 2014 when they formed the Adaltis Bio Med Co joint venture, which is 40%-owned by Adaltis. That venture was designed to launch a multi-item imported diagnostic reagent product service for instruments and reagents in China.
BATM said the Adaltis Bio Med company has now signed its first major distribution agreement with Chinese medical and healthcare group Sino Pharm to distribute Adaltis HCV, the joint venture's Hepatitis C medicine, nationwide in China.
"We are delighted to see that our efforts and focus on the Chinese market are starting to bear fruit. China is one of the world's largest and growing markets with enormous potential for us. We are pleased that our long-term partner has chosen to deepen our relationship by investing in the joint venture and Adaltis, which we believe will facilitate us gaining more market share," said Zvi Marom, BATM's chief executive.
"This agreement with Egens as well as the agreement with Sino-Pharm are the first of several steps to be taken in our long-term plan for China, which we believe will be a major market of our Biomed solutions," he added.
BATM shares were up 14% to 14.96 pence on the news Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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