AcnEase is a proprietary herbal formula based on principles of traditional Chinese medicine and a modern herbaceutical science that is used for improving conditions associated with acne and rosacea, the company said. Herborium currently holds an exclusive license for the distribution of AcnEase that it sells in the US, the UK and the Continental Europe.
The terms of the agreement include both equity and capital that is being raised through Southridge Investment Group. Upon completion of the transfer of the formula, expected before the end of 2008, Herborium will take over the manufacturing process for AcnEase being performed in the US eliminating the licensing fee and significantly decreasing the cost of goods.
In addition, the company has hired Aihua Qi as vice president of TCM Research. Dr Qi is the originator of the AcnEase formula and will assist Herborium in improvements of the formula, identification and qualification of new products to complement the existing pipeline.