Regent Pacific Group Ltd. (00575.HK) is about to complete its takeover of Plethora Solutions, a drug company listed on Britain’s alternative investment market.
The move is part of plans by the Hong Kong investment holding company to move away from its core mineral business.
Plethora is primarily engaged in the research and development of a drug for premature ejaculation.
The drug has been approved by European authorities for sale in the second or third quarter next year, Regent Pacific chief executive Jamie Gibson said.
Drug maker Recordati will manufacture and market the product under a revenue sharing agreement which involves 15 to 25 percent of net sales during the first 10 years.
The ratio will fall to a single digit afterwards.
The terms apply across target markets including the United States, Asia, South America and Africa.
Regent Pacific is planning to divest its mineral assets, Gibson said.
Plethora will delist from the AIM board after the takeover is completed by the end of the year.
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