Mingyuan Medicare Development (233.HK)       

(TP: HK$1.30; rating under review)

Strategic technology transfer agreement

Cancer chip producer Mingyuan Medicare (233.HK) announced that its wholly owned subsidiary HealthDigit Biochips entered into a technology transfer agreement with the National Institute for the control of Pharmaceutical and Biological Products (NICPBP) for the development, production and commercialization of a new  generation of non-specific nanotechnology immunomodulatory drugs to treat life threatening diseases including influenza A (H1N1), tuberculosis, human immuno-deficiency virus (HIV) and certain types cancer .

Under the TT Agreement, the NICPBP transferred all intellectual property rights together with the production know how of the NCPP drugs to MY and the company will be responsible for the registration of the NCPP drugs with the State Food and Drug Administration in China and for the production and commercialization of the NCPP Drugs. NICPBP will remain as a technical advisor to the development and production of the NCPP drugs, and work jointly with MY to further develop the clinical applications of NCPP drugs for various other diseases.

This should be good news for MY, as NCPP is an affiliated organization of the SFDA, and is the highest level institute for safety and quality control of pharmaceutical and biological products in China and also Centre for Drug Quality Assurance for the World Health Organization. As a start, this collaboration should help the company expand technological know-how and strengthen MY’s reputation in the industry.

Closing at HK$1.49 on Thursday, 7th Jan 2010, the price of the stock has exceeded our TP of HK1.30 and is currently under review