Unigene and Shijiazhuang Pharmaceutical Group (SPG) plan to establish the SPG-Unigene Biotechnology Research Institute in China. The institute will continue ongoing registration activities for Unigene’s calcitonin products, develop biopharmaceutical manufacturing facilities compliant with US current good manufacturing practice guidelines and establish and supervise the creation of a new pharmaceutical distribution network for joint venture products in China, all to take advantage of osteoporosis market.
Unigene will maintain its 45% ownership position in the joint venture. The combined capital investment commitment for the joint venture will remain at $15 million. Unigene’s initial cash contribution to the joint venture will remain at $900,000, which will be paid by Unigene upon the satisfaction of certain conditions, while the majority, or possibly all, of its remaining contribution will be in the form of technology.