Oculus Innovative Sciences, Inc., 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 an agreement with Bayer (Sichuan) Animal Health Co. Ltd. for development of the Microcyn Technology for use in the Chinese animal market.
As part of the agreement, Bayer (Sichuan) Animal Health Co. Ltd. will be responsible for securing Chinese regulatory approval for the use of Microcyn Technology in both the Chinese companion animal and food animal markets. Upon receipt of the Chinese regulatory approvals, Bayer retains right of first negotiation to enter into a distribution agreement for Oculus' Vetericyn animal brand (formulated with the Microcyn Technology) for the People's Republic of China.
In March of this year, Oculus announced Chinese State and Food Drug Administration approval of Microcyn Technology for treatment of various acute and chronic wounds including ulcers, cuts, contusions and burns in humans. This approval followed the completion and submission of two randomized controlled Chinese clinical trials of Microcyn in December of 2007--a burn wound study with 162 patients and a chronic wound treatment study with 35 patients. Oculus entered into an agreement with China Bao Tai in 2007 for the distribution of Microcyn-based products for humans in China through its various sub-distributors, including Sinopharm and Lianhua Supermarket Holdings Co., Ltd.
Hoji Alimi, CEO and founder of Oculus said, "We see this ongoing Bayer Animal Healthcare relationship as another vital step in our efforts to expand Microcyn's impact on animal health care worldwide--first with the announced development agreement last week with Bayer Australia Limited and now today's agreement with Bayer Sichuan Animal Health. Similar to our efforts to establish Microcyn as the standard of care in human wound care, Bayer Animal Health of China has the ability to carry this same message into multiple animal health care markets through its global network of Bayer Animal Health divisions. We believe that successful approval and adoption of the Microcyn Technology in the Chinese animal health market will positively increase awareness for the Microcyn technology in other regional animal health care markets."
According to Animal Pharm Reports, the market for animal health and nutrition products in China was worth just over $1.5 billion in 2004 and has grown by more than one-third since 2000. The main reasons for this dynamic growth are the underlying strength of the Chinese economy, and the resultant increases in demand for meat and meat products. This scenario is likely to continue for at least another 10 years, and the growth prospects for the Chinese animal health and nutrition industry are thus excellent. Animal Pharm Reports forecasts that the market will be worth $2.4 billion by 2010.
The Bayer Animal Health Division produces and distributes worldwide about 100 different veterinary drug products and grooming products for food animal and companion animals. It is one of the leading and most successful global suppliers of veterinary specialties and ranks internationally among the top four.
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.