Artepharm Global to Market TCM-Based Malaria Drug
Artepharm Global Corp. (OTCBB: ARGC) formed a joint venture with a similarly named China company, Artepharm Co. Ltd. (Artepharm China), to market a malaria drug. Artepharm China is a Guangzhou based biopharma whose malaria drug, ArtequickÂ®, produced $1.5 million of revenue in 2009.
Artepharm Global Corp. (OTCBB: ARGC) formed a joint venture with a similarly named China company, Artepharm Co. Ltd. (Artepharm China), to market a malaria drug. Artepharm China is a Guangzhou based biopharma whose malaria drug, Artequick®, produced $1.5 million of revenue in 2009.
Under the terms of the JV, Artepharm Global will acquire the global marketing rights and hold the global patents for Artequick, as well as retain all the sales revenues in exchange for 40 million shares of Artepharm Global\'s stock. Artepharm Global has no other business. Although the transaction was announced as a JV, it looks and feels like a reverse merger.
Artequick is an inexpensive four-pill treatment that can both cure and prevent malaria, including the latest strains. Its active ingredient is artemisinin, a plant that is indigenous to China and has been utilized as malaria treatment since the 1600s. Artepharm incorporated the drug into a western delivery system. It is approved for use in 11 countries, including China.
Artepharm China characterizes itself as a modern pharmaceutical company, involved in R&D, manufacturing and marketing. It was established by experts from Guangzhou University of Traditional Chinese Medicine who specialize in research of Qinghuao (Artemisia annua L) along with the Guangdong New South Group. Prof. Li Guoqiao is the chief scientist of Artepharm.
Guangdong New South Group is a conglomerate with interests in real estate, hotel and traditional Chinese medicine modernization. It provided the financial backing for Artepharm.
Artepharm is focused on the R&D and marketing of artemisinin, artemisinin-based therapy (ACT), antiviral herbal medicines and health food. The Artemisinin Industrialization Project includes cultivation, extraction and processing, R&D, manufacturing and sales.