Synmosa Biopharma Inks NT$210 million Licensing Agreement for Budesonide

Date:2016.08.04

Synmosa Biopharma (TPEx:4114) today announced the signing of a new product licensing deal with Hemony Pharma Co., Ltd for the sale of Besonin® (budesonide nasal spray). The agreement is valued at NT$420 million (about US$13.8 million), and the initial transfer of NT$210 million (about US$6.9 million) has already been received by Synmosa, accounting for 50% of the total licensing amount. The market for nasal spray in mainland China is growing at a breakneck speed, and sales channels are equally expanding as quickly as possible to meet the demand. As a result, Tibet Hemony Pharma began outsourcing order transfers for shipments of over 850,000 pcs within the last half of 2016 alone, amounting to nearly Synmosa's entire sales in the mainland China market last year. With growth in the nasal spray segment already exceeding original estimates, it is anticipated that Synmosa's overall profitability for this calendar year will receive a significant boost.

According to Synmosa, Tibet Hemony Pharma's sales network in mainland China encompasses more than 300 tertiary hospitals and 2,000 secondary hospitals throughout the entire country, making it ripe for further growth and expansion. In particular, Tibet Hemony Pharma's sales of budesonide nasal spray in the mainland China market show huge potential for future growth. According to internal data from the CFDA, the demand for budesonide nasal spray in China is estimated at 5 million pcs, suggesting a further surge in sales growth is likely in the near future. In addition to having already established market links and new sales channels, Tibet Hemony Pharma arranged in the latter half of the year to outsource a large quantity of transfer orders in the last half of 2016, resulting in the number of shipments already surpassing Synmosa's entire sales in mainland China for the full calendar year. Indeed, it is anticipated that Hemony Pharma will continue on its growth trajectory for the foreseeable future.