China’s Grand Pharmaceutical has announced that it entered into a subscription agreement with Canada’s Conavi Medical. The two companies also entered an exclusive distribution agreement for Conavi’s products. Pursuant to a Subscription Agreement, their Joint Venture will subscribe in aggregate 1,043,115 preferred shares of Convani at a total consideration of approximately US$7.5 million.
Conavi’s is a medical device company with cardiovascular and intravascular imaging technology. It was derived from Sunnybrook Health Science Centre, an academic hospital and medical science research institution of University of Toronto. The existing products of Conavi’s including 3D intracardiac echocardiography (3D-ICE) and intravascular ultrasound/optical coherence tomography (IVUS/OCT). A few products have already obtained sales license in Canada and United States of America, and already commenced commercial sales in the North America Market. Pursuant to the Distribution Agreement, the Joint Venture obtains the twenty years exclusive distribution rights for Conavi products such “Foresight ICE” series and “Novasight Hybrid” series in the Chinese mainland, Hong Kong, Macau and Taiwan regions, and is responsible for the clinical trials and registration work of the related products in the Distribution Regions.
Cardiovascular imaging technology is an important basis and reference for the diagnosis of cardiovascular diseases. The global market of diagnostic and guided interventional cardiology products, including the technology such as intracardiac echocardiography (ICE), intravascular ultrasound (IVUS), optical coherence tomography (OCT), will continuously maintain steady growth. It is expected to expand at a compound annual growth rate (CAGR) of approximately 6.4% during 2016 to 2021, and the global market sales quantity will increase from approximately US$3.5 billion in 2016 to approximately US$4.8 billion in 2021.
According to the news release, in the Chinese medical market, there were approximately 666,000 cases applied interventional surgery treatment, in which approximately 30% cases could apply coronary artery drug-elution balloon, with a market size of approximately RMB2.5 billion. Also in China, there are over 3 million patients suffering from PAD every year, and the market size in the future is expected to be over RMB3.0 billion. There are also approximately 320,000 patients suffering from hemodialysis disease, and the potential market is approximately RMB2.0 to 2.5 billion. The products introduced by this alliance are currently in the CFDA registration progress in China, and it is expected to complete the registration and commence commercial sales starting from 2018. Among which there is a medical device product applied to the treatment for hemodialysis fistula, and it is the first high-pressure drug-elution balloon product for such treatment aspect around the world and expected to be the first one in China.