Provexis' partners with Chinese giant to break into Chinese market
Anita Riotta
Company News
14:01, 2nd August 2019

Provexis (PXS) FOLLOW has announced a collaboration agreement with By-Health Co., a £3bn listed Chinese dietary supplement business. The partnership is aimed at facilitating Provexis’ Fruitflow heart health products launch in the Chinese market.

Shares were up nearly 12% this morning following the news.

Importantly, while the agreement is centered on the distribution of Fruitflow products it has been structured as an “open-ended framework” lasting an “unspecified period of time”, signaling the partners may undertake any number of other projects. 

Provexis has stated that any such additional work would be at “By-Health's sole expense” but would be within areas of “commercial focus” for the Chinese business.

The initial project focuses on the use of Fruitflow with nitrates in exercise and is estimated to bring in a gross income of £55,000 to Provexis.

And while the company seeks to bring its Fruitflow products into new markets, it assured investors today that such projects do not jeopardize its “substantial intellectual property” for Fruitflow.

Ian Ford, CFO and COO of Provexis, commented on the news, “We are delighted to announce this open-ended collaboration agreement with By-Health, which further strengthens the already close relationship between By-Health and Provexis.

By-Health has already made a substantial investment at its sole expense in the clinical trials which it has been conducting in China, seeking to secure blue cap health claim status for Fruitflow. The Company is very pleased to be able to assist By-Health with its commercialisation plans for Fruitflow in China, by way of this new investment with Provexis in the UK, and it will seek to undertake further projects for By-Health under this flexible framework agreement…

If a successful blue cap health claim is achieved for Fruitflow in China it would currently be expected to result in some significant orders for Fruitflow, potentially at a multiple of current total sales values. The Company will provide shareholders with as much information as it can with regard to the timing of this commercially sensitive and potentially transformative process.”

For more news and updates on Provexis: FOLLOW

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