GP (HK) Enters into an Investment Agreement with Revolmmune Introducing the World-Wide Innovative VSV-GPM To Strengthen the Strategic Planning in Tumor Precision Treatment and Tumor Immunotherapy
(July 15, 2020, Hong Kong) China Grand Pharmaceutical and Healthcare Holdings Limited (“GP (HK)” or the “Company”, together with its subsidiaries, the “Group”, stock code: 00512) is pleased to announce that the Group recently entered into an equity investment agreement (the “Investment Agreement”) with Shanghai Revolmmune Therapeutics Bio-technology Limited (the “Revolmmune”). The Group will invest RMB30,000,000 into Revolmmune to obtain approximately 9.7% equity interests of Revolmmune and a board seat, subject to certain terms set out in the Investment Agreement being fulfilled.
For further deepening the cooperation of both parties and strengthening the strategic planning of the Group in the field of tumor precision treatment and tumor immunotherapy, the Group will base on the agreed terms related to products transfer and development for further negotiation with Revolmmune, in order to obtain the global exclusive rights (including the rights of global development, production and commercialization) for the world-wide innovative Vesicuar Stomatitis Virus product from Revolmmune (“VSV-GPM”) for the treatment of colorectal cancer, and also the pre-emptive rights of cooperation for other products developed by Revolmmune.
Oncolytic virus is a new generation antitumor immunotherapy drug and is a novel therapy for tumor treatment. Oncolytic virus shows good efficacy in killing tumor cells, with good targeting rate, high safety, minor side effects and low cost. This may make the oncolytic virus as one of the malignant tumor treatment method with great potential and prospects.
Vesicuar Stomatitis Virus (“VSV Virus”) is a RNA type oncolytic virus. It can dissolve tumor but the gene of virus will not integrate into genes of human cells, thus it does not have the risk of genotoxicity and is much safer. VSV-GPM is a VSV Virus product with modified gene, which can strengthen the selectivity towards tumor cells and lower the toxicity to normal cells and as a result enhance its safety and efficacy. Furthermore, VSV-GPM is an oncolytic virus product aiming at common target of refractory tumors. Refractory tumors with such target usually have high morbidity, high malignancy and high mortality, and currently no effective treatment methods, which include pancreatic cancer, colorectal cancer, lung cancer, liver cancer, esophageal cancer, gastric cancer, etc. According to the data of National Cancer Centre, colorectal cancer patients in China increased from approximately 376,000 in 2014 to approximately 427,000 in 2018. And market research agency Frost & Sullivan forecasted that in 2023 there will be approximately 495,000 colorectal cancer patients in China. This shows the clinical need is huge and unmet.
Revolmmune is a high-tech biotechnology and bio-medical research startup company. It focuses on the research and application of vital vector and tumor immunotherapy, and is also engaged in the development of vein feeding and immunopotency of the virus as well as works on the promotion of the innovative tumor immunotherapy in order to provide precise treatments to tumor patients. The research team of Revolmmune has worked on the research of oncolytic virus for a long time and owned certain core technology. The founding team consists of doctors and professors from domestic and overseas famous institutes, and experienced researchers from international top-rated pharmaceutical manufacturers.
The Board of China Grand Pharmaceutical and Healthcare Holdings Limited, commented: “Enriching innovative pipelines and strengthening differentiation strategies are keys for the development of pharmaceutical companies under current policies and competition landscape. The Group has started forward-looking strategic planning since a few years ago, and has continuously enhanced innovative pipelines with a focus on therapeutic fields which have bright prospects but lack effective treatments. The Group actively introduces top-notch talents to enhance self-research and development strength, and conducts global expansion by acquiring domestic and global high-quality products and assets in core therapeutic fields, in order to enrich innovative product pipelines and core products reserve. Entering into the Investment Agreement with the Revolmmune and obtaining the world-wide exclusive rights of VSV-GPM will add another world-wide innovative product in the field of tumor precision treatment and tumor immunotherapy, following the existing SIR-Sphere Y-90 resin microsphere and TAVO products. This creates synergies between high-quality assets. As the products of the Group will cover more indications in the field of tumor precision treatment and tumor immunotherapy, it will benefit more patients and is expected to generate substantial revenue to bring higher returns for shareholders.”