Oculus Innovative Sciences, Inc. (Nasdaq: OCLS), a biopharmaceutical
company that develops, manufactures and markets a family of products
based upon the Microcyn® Technology platform
that is intended to treat infections in chronic and acute wounds,
announced today that the Oculus development team completed meetings this
past week in Beijing, China with Chinese partners at China Bao Tai and
Sinopharm regarding commercialization plans for the product launch of
Microcyn Technology in China.
Oculus Innovative Sciences entered into an agreement with China Bao Tai
in 2007 for the distribution of Microcyn-based products in China. The
partnership allows Oculus and the Microcyn Technology to gain a foothold
in China through China Bao Tai and its various sub-distributors,
including Sinopharm and Lianhua Supermarket Holdings Co., Ltd.
The first phase of the Chinese commercialization plan includes sampling
of Chinese wound care professionals with the Microcyn-based Dermacyn™
product. This will initially target key opinion leaders via trials at
multiple medical centers for the purpose of securing both post-market
clinical data and reimbursement. Dermacyn was approved in March of this
year by the Chinese State Food and Drug Agency (SFDA) as a technology
that provides a moist environment for wounds and accelerates wound
healing through the reduction of microorganisms in wounds.
In results from Oculus’ recently completed
U.S. Phase II clinical trial evaluating Microcyn®
Technology as a topical antimicrobial treatment for mildly infected
diabetic foot ulcers, the clinical success rate at the test-of-cure
visit for Microcyn-alone-treated evaluable patients was 93% compared to
56% for the levofloxacin (antibiotic) plus saline-treated patients. This
data, along with complementary results from more than 25 other
additional Microcyn trials previously completed, is a key message for
the Chinese market since it indicates that Microcyn use can reduce the
need for systemic antibiotics, the overuse of which is responsible for
the global epidemic of antibiotic-resistant bacteria and viruses such as
MRSA.
Hoji Alimi, CEO and founder of Oculus said, “It
is vital that the Microcyn Technology be properly positioned and its
wide spectrum of potential applications fully communicated to the
Chinese medical community. To that end, the Oculus team and our Chinese
partners are crafting a launch plan that is designed for short- and
long-term success, further underscoring our commitment to this important
market. We believe this well-conceived, multi-tiered commercialization
strategy will provide patients with the latest advance in both
anti-infective and wound healing technologies and Oculus shareholders
with the optimum return in this enormous market of 1.3 billion people.”
Chinese Healthcare Market
According to Journal of the American Medical Association, as is the case
in much of the rest of the world, the aged proportion of China’s
population is increasing. The population older than 65 years included
100.4 million persons, or 7.69% of China’s
total population, in 2005 and is expected to increase at an annual rate
of 3.28%. With this increased aged population, total health care needs
and expenditures will increase as well. China’s
proportion of GDP allocated to health care, currently about 5.55%, is
likely to increase steadily to become closer to that of developed
countries, most of which have comparable rates of 8% to 11%, up to
nearly 16% in the United States.
Decision Resources, one of the world's leading research and advisory
firms focusing on pharmaceutical and healthcare issues, finds that the
prevalence of type 2 diabetes in China is staggering, rivaling that of
the United States, Europe, and Japan combined. According to a new
Emerging Markets-China report entitled Type 2 Diabetes in China,
the type 2 diabetes drug market in China will reach $1.3 billion in
2010. The report also finds that increasing economic power in China has
led to growing numbers of patients with supplementary healthcare
insurance and an improved ability to afford Western-branded drugs.
About China Bao Tai Investment Company
China Bao Tai Investment Co., Ltd. is a diversified investment
company with a focus on health care, high-tech, new energy sources, and
environmental protection. It is registered with the State Administration
for Industry and Commerce of the People’s
Republic of China. China Bao Tai has extensive experience introducing
new products and technologies into China and enjoys a productive working
relationship with both local and central government agencies. They will
utilize various sub-distributors for hospitals, independent pharmacies
and retail pharmacies. In that effort, China Bao Tai has reached
agreement with two key sub-distributors:
Sinopharm for hospital and pharmacy distribution
Sinopharm (www.sinopharm.com/en)
is China's largest pharmaceutical group. Incorporating research with
production and service trade, the company has under its jurisdiction 10
wholly owned subsidiaries or shareholding companies. In 2004, its sales
revenue from medicines and medical equipment totaled $2.3 billion US and
its imports and exports volume reached $500 million US.
Lianhua Supermarkets for supermarket distribution
Lianhua Supermarket Holdings Co., Ltd. (www.lhok.com.cn)
is a retail chain operator with retail outlets covering the entire
Chinese nation, offering a full range of products through direct
operations, franchises, mergers and acquisitions. Lianhua Supermarket
operates a total of 3,609 outlets spanning 21 provinces and
municipalities across the nation.
About Oculus
Oculus Innovative Sciences is a biopharmaceutical company that develops,
manufactures and markets a family of products based upon the Microcyn®
Technology platform, which is intended to help prevent and treat
infections in chronic and acute wounds. The Microcyn Technology platform
is a biocompatible, shelf-stable solution containing active oxychlorine
compounds that is currently commercialized outside the United States
(Europe, India and Mexico) for the treatment of infected wounds. The
solutions derived from the Microcyn Technology platform have
demonstrated, in a variety of research and investigational studies, the
ability to treat a wide range of pathogens, including
antibiotic-resistant strains of bacteria (including MRSA and VRE),
viruses, fungi and spores.
A recently completed U.S. Phase II clinical trial of Microcyn Technology
met the primary endpoints of safety and efficacy for the treatment of
mildly infected diabetic foot ulcers.
Oculus' principal operations are in Petaluma, California, and it
conducts operations in Europe, Latin America and Japan through its
wholly owned subsidiaries, Oculus Innovative Sciences Netherlands B.V.,
Oculus Technologies of Mexico, S.A. de C.V. and Oculus Japan K.K.
Oculus' website is www.oculusis.com.
Forward-Looking Statements
Except for historical information herein, some matters set forth in this
press release are forward-looking within the meaning of the "safe
harbor" provisions of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are identified by the use of
words such as "finalize," "will,”
“securing,” “communicated,”
“designed,” and
"will provide," among others. Forward-looking statements in this press
release are subject to certain risks and uncertainties inherent in the
Company's business that could cause actual results to vary, including
risks inherent in the development and commercialization of potential
products, the risk that regulatory clinical and guideline developments
may change, the risk that scientific data may not be sufficient to meet
regulatory standards or receipt of required regulatory clearances or
approvals, the risk that clinical results may not be replicated in
actual patient settings, the risk that protection offered by our patents
and patent applications may be challenged, invalidated or circumvented
by our competitors, the risk that present trends will continue and that
the available market for our products will not be as large as expected,
the risk that our products will not be able to penetrate one or more
targeted markets, the risk that revenues will not be sufficient to fund
further development and clinical studies, the Company's future capital
needs, and its ability to obtain additional funding and other risks
detailed from time to time in the Company's filings with the Securities
and Exchange Commission including the quarterly report on Form 10-Q for
the quarter ended December 31, 2007. Oculus Innovative Sciences
disclaims any obligation to update these forward-looking statements.
Oculus, Microcyn and Dermacyn are trademarks or registered trademarks of
Oculus Innovative Sciences, Inc. All other trademarks and service marks
are the property of their respective owners.
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