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Universe Pharmaceuticals INC Announces Strategic Alliance with Kitanihon Pharmaceutical Co., Ltd. to Address the Market Demand for Kampo Medicine and High-end Traditional Chinese Medicine
Ji’an, Jiangxi, China, Dec. 13, 2021 (GLOBE NEWSWIRE) -- Universe Pharmaceuticals INC (the “Company”) (Nasdaq: UPC), a pharmaceutical producer and distributor
About this update from Universe Pharmaceuticals Inc
[{"type":"text","content":"Ji’an, Jiangxi, China, Dec. 13, 2021 (GLOBE NEWSWIRE) -- Universe Pharmaceuticals INC (the “Company”) (Nasdaq: UPC), a pharmaceutical producer and distributor in China, today announced that on December 1, 2021 the Company entered into a strategic cooperation agreement and associated ancillary agreements (the “Agreements”) with Kitanihon Pharmaceutical Co., Ltd. (“KP”), a Japanese company engaged in the research, development, manufacturing, and distribution of Kampo (a traditional Japanese herbal medicine) pharmaceutical and medical products. The purpose of the Agreements is to address market demand for Kampo medicine and high-end traditional Chinese medicine (“TCM”). Pursuant to the Agreements, the Company and KP agree to exchange equity interests in each other's company and, as previously disclosed, jointly build a new manufacturing facility (the “Facility”) in Ji’an, Jiangxi Province, in accordance with the market access requirements from the Japan’s Pharmaceutical and Medical Devices Agency (PMDA). The Company will appoint a director to KP’s board of directors to directly participate in the management of KP. The Chief Executive Officer of KP, Nishimura Ichiri, will be named as Foreign Expert of the Company. The Facility, once built, will principally serve as a production facility for Kampo medicine and high-end TCM products. Products manufactured in the Facility will be sold in Japan, Southeast Asia, and countries in China’s Belt and Road initiative. Mr. Gang Lai, Chairman and CEO of Universe Pharmaceuticals INC, commented, “We are pleased to have KP as our strategic partner to address the demands for Kampo medicine and high-end TCM products, which we believe is significant for the Company's long-term development. In addition, we are very excited to have Mr. Ichiri, a well-known expert in Kampo medicine in Japan, join the Company as Foreign Expert. With the cooperation of KP and the addition of Mr. Ichiri, the Company will establish its presence in the Kampo medicine market and further strengthen its position and capability in the traditional Chinese medicine market. We expect to generate a revenue of RMB2 billion with a profit of RMB260 million annually within five years after the launch of the Facility. Looking forward, we will strive to become a benchmark company in the pharmaceutical industry by implementing our innovativ...