Biotechnology and pharmaceutical company BPH Global (ASX:BP8) has entered into a legally binding joint venture (JV) agreement with Singapore-based Chemokine Yuesheng to develop 2 ‘bird’s nest’-related products.
BPH, which has a $2.66 million market capitalisation, says the first product is a capsule form bird’s nest product, incorporating Australian honey extract. The second product is a nutraceutical form bird’s nest product, incorporating nutraceuticals extracted from mushrooms.
BPH says the agreement represents a ‘significant’ opportunity for the company to partner with a quality Singapore-based company
BPH says the agreement represents a ‘significant’ opportunity for the company to partner with a quality Singapore-based company in the development and commercialisation of high-end bird’s nest-based products.
The key terms of the agreement include a 12-month term with a right to extend the arrangement for a further 12 months. BPH will source the honey and mushroom extract products from Australia, and Chemokine will source the bird’s nest products and conduct research and development activities at its Singapore-based laboratory.
Under the partnership, 4 defined phases for the development and commercialisation activities for each project are required, and the budget for each project is to be agreed upon between the parties within 3 months and is to be shared equally.
The commercialisation terms for each project are to be negotiated and agreed upon by both parties in the context of determining and agreeing on the budget for each project.
Either party can terminate on 3 months’ notice, except that if the budget in respect of each project is not agreed by the parties within 3 months of signing the JV agreement, either party can terminate immediately.
The initial target markets for the 2 products are China and the ASEAN region.
BPH Global is focused on the development, reproduction, culture, and extraction of plant stem cells for TCM medicinal, health, beauty, and anti-aging applications through its environmentally friendly patented technology.
Write to Aaliyah Rogan at Mining.com.au
Images: BPH Global