TEL-AVIV, Israel--(BUSINESS WIRE)--Procognia (TASE: PRCG), announced that, on Thursday March 1, it signed a binding letter of intent with Beijing Cy-Tech Biotech Company("Cy-Tech"), by which Cy-Tech was granted the exclusive rights to sell, distribute and market Procognia’s glycoanalysis product, the GlycoScopeTM ("the Product") in the Greater China Region (China, Hong Kong, Macao and Taiwan) ("the Territory"). In addition, Cy-Tech was awarded the exclusive right to provide its clients in the Territory with glycoanalytical services relying on knowhow and expertise that Cy-Tech will receive from the company ("the Services" and "the letter of intent"). Beyond the compensation that will be received by the company through the purchase of the Product by Cy-Tech, the company will be entitled to a certain percentage of the revenues received by Cy-Tech due to the provision of these services. Cy-Tech will be responsible for all sales and marketing activities related to the Product, and also for providing Services in the Territory, and will bear all costs associated with these services. Cy-Tech will also provide local technical support to its clients in the Territory with support from the company.
GlycoScopeTM is an analytical tool designed specifically for pharmaceutical companies and research labs. It is used to identify the glycosylation structure of glycoproteins during the research, development, and production phases of biological drugs, and can also be used for other applications such as stem cell research, vaccine development, and more.
Many new drugs currently entering the market are biological drugs, and most of them include glycoproteins. Understanding and analyzing the glycosylation structure of these glycoproteins is crucial for the successful functioning of the drug in the human body, as they may affect the drug's activity, immunogenicity and pharmacokinetics. For these reasons, the need for effective and precise glycoanalytical tools will continue to increase. Procognia's technology has been launched in a number of leading biopharmaceutical companies.
In the context of the letter of intent, Cy-Tech pledges to purchase Products from the company and/or provide Services for certain amounts through the following three years.
Alon Natanson, Procognia President and CEO, said: "This agreement is a very important milestone for us. Procognia has proprietary ownership of unique and advanced scientific and technological expertise, and Cy-Tech is a leading distributor of products to companies in the life sciences field. This agreement creates strategic synergy with our goal of marketing and distributing our unique analytical product in the Greater China Region."
Mr. Hongjie, Cy-Tech CEO, said: "We are very pleased to have this opportunity to work with Procognia, which is one of the world's leading glycobiology companies, with specific expertise in the glycoanalysis of glycoproteins. The precise analysis carried out by the GlycoScopeTM is vital for a variety of purposes, including the developing and manufacturing processes of pharmaceuticals and biomedical products in the life sciences and medical research fields. We believe that this cooperation will contribute to the growth of the life science industry in the Greater China Region, and will help us to provide our clients with greater added value."