China Aoxing Begins Trial for Codeine-based Cold Drug
by Richard Daverman, PhD
ChinaBio Today
Company Delivers Opioid Pain Drugs to China
China Aoxing Pharmaceutical Company (Bulletin Board: CAXG) received permission to begin a clinical trial in China of a codeine-based therapy for the treatment of cold and flu. Codeine phosphate did not become available in China until 2006, though the drug is commonly used outside of China for colds and flu. China Aoxing is one of two companies undertaking development of the drug.
China Aoxing will combine guaifenesin (an expectorant), pseudoephedrine hudrochloride and codeine phosphate, in a mixture similar to that available outside of China.
The company expects to begin the trial later this year, and complete it in early 2008. The multi-center, randomized, double-blind, placebo-controlled trial will enroll 300 patients.
China Aoxing has experience with opioids, because it specializes in analgesics and pain management products, including opioid products. It manufactures Oxycodone, Pholcodine, Naloxone, and Tilidine for the Chinese market.
According to China Aoxing’s CEO, Zhenjiang Yue, the market for cold and flu medications in China is currently running at $625 million, and it is growing at 20% per year.
The operating subsidiary of China Aoxing in China is Hebei Aoxing Pharmaceutical Group Co. Ltd.
China Aoxing moved up 9 cents to $2.80 on the news. It has a market capitalization of $112 million. In May, China Aoxing announced its income increased 62% to $562,000 in the company’s fiscal third quarter. Its gross profit was $123,000, but because of merger related charges, interest expense, R&D and other costs, it reported a loss of $1.38 million for the period.
In April, China Aoxing signed a letter of intent to acquire Shijiazhuang Le Ren Tang Pharmaceutical Ltd. The acquisition will expand China Aoxing’s offerings in the pain management market, and China Aoxing expects the merger to be accretive upon closing.
Shijiazhuang Le Ren Tang specializes in modernized versions of traditional Chinese medicines.
To make the acquisition, China Aoxing paid $10 million or about two times annual revenues for Shijiazhuang Le Ren Tang. Of the $10 million, half will be paid in cash and the rest in China Aoxing shares, which will be valued at $4 per share for the transaction.
Source: ChinaBioToday.com
RELATED READING:
- Chi-Med Rumoured Close to Signing Major Deal
- Sinovac Biotech: A Bird Flu Play
BioHealthInvestor.com
_____________________
ChinaBio Today
Company Delivers Opioid Pain Drugs to China
China Aoxing Pharmaceutical Company (Bulletin Board: CAXG) received permission to begin a clinical trial in China of a codeine-based therapy for the treatment of cold and flu. Codeine phosphate did not become available in China until 2006, though the drug is commonly used outside of China for colds and flu. China Aoxing is one of two companies undertaking development of the drug.
China Aoxing will combine guaifenesin (an expectorant), pseudoephedrine hudrochloride and codeine phosphate, in a mixture similar to that available outside of China.
The company expects to begin the trial later this year, and complete it in early 2008. The multi-center, randomized, double-blind, placebo-controlled trial will enroll 300 patients.
China Aoxing has experience with opioids, because it specializes in analgesics and pain management products, including opioid products. It manufactures Oxycodone, Pholcodine, Naloxone, and Tilidine for the Chinese market.
According to China Aoxing’s CEO, Zhenjiang Yue, the market for cold and flu medications in China is currently running at $625 million, and it is growing at 20% per year.
The operating subsidiary of China Aoxing in China is Hebei Aoxing Pharmaceutical Group Co. Ltd.
China Aoxing moved up 9 cents to $2.80 on the news. It has a market capitalization of $112 million. In May, China Aoxing announced its income increased 62% to $562,000 in the company’s fiscal third quarter. Its gross profit was $123,000, but because of merger related charges, interest expense, R&D and other costs, it reported a loss of $1.38 million for the period.
In April, China Aoxing signed a letter of intent to acquire Shijiazhuang Le Ren Tang Pharmaceutical Ltd. The acquisition will expand China Aoxing’s offerings in the pain management market, and China Aoxing expects the merger to be accretive upon closing.
Shijiazhuang Le Ren Tang specializes in modernized versions of traditional Chinese medicines.
To make the acquisition, China Aoxing paid $10 million or about two times annual revenues for Shijiazhuang Le Ren Tang. Of the $10 million, half will be paid in cash and the rest in China Aoxing shares, which will be valued at $4 per share for the transaction.
Source: ChinaBioToday.com
RELATED READING:
- Chi-Med Rumoured Close to Signing Major Deal
- Sinovac Biotech: A Bird Flu Play
BioHealthInvestor.com
_____________________
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