Shineco, Inc. (“Shineco” or the “Company”; NASDAQ: TYHT), a producer and distributor of Chinese herbal medicines, organic agricultural and hemp products and other biotech products, announced that it entered into a framework agreement (the “Framework Agreement”) on October 4, 2021, to acquire over 51% equity interest of Beijing Wonner Biotech Co., Ltd. (“Beijing Wonner”) with no more than $30 million, to jointly develop SNG, a rapid-acting antidepressant natural innovative medicine. The final purchase price will be separately determined based on the evaluation report issued by a third party.
Beijing Wonner is a biotechnology company engaged in the research and development (“R&D”) of natural medicines and related products. It adheres to the concept of promoting development with innovation and prospective judgments. It focuses on R&D of medicines for depression, irritable bowel syndrome and other immune metabolic diseases. Beijing Wonner has applied for more than 20 patents worldwide, of which more than 16 patents have been authorized in China, the United States and Europe.
SNG is a natural product extracted and purified from Paeoniae Radux Alba, a traditional Chinese medicine. Natural products have become a rich repository for new drugs or lead compounds in drug discovery due to their complex structures and biological activities. According to statistics data, from 1981 to 2010, 34% of small molecule drugs approved by the FDA were natural products or their derivatives. After years of efforts, SNG, a rapid-acting antidepressant natural medicine, developed by Beijing Wonner, has made breakthroughs and achieved progressive results in the research of biological targeting and mechanism acting. It is found that the antidepressant mechanism of SNG is different from traditional monoamine medicines, and SNG’s potential advantages are rapid-acting, safe, and cost-effective with minor side effects. At present, SNG has had preliminary conditions for application of clinical trials.
Mr. Zuoguang Zhang, Chairman of Beijing Wonner, said, “SNG is a new generation of antidepressant natural medicine that we have repeatedly researched and developed for years. In addition to the advantages of rapid-acting performance, SNG may have the potential to treat inflammatory major depressive disorder (MDD). As a multi-target natural medicine, SNG can prevent and treat immune metabolic diseases through various functions such as anti-stress, anti-inflammatory, anti-depression, and adjusting intestinal flora. These functions can derive a series of high value-added products and provide a new medication method for the treatment of somatic comorbid depression. Shineco’s investment will advance the progress of SNG R&D and the application of clinical trials, and bring products to the market for the benefit of patients.” Ms. Jennifer Zhan, CEO of Shineco, commented, “The global antidepressants market will exceed $16 billion by 2023 and the Chinese market will exceed $10 billion with an annual growth rate of over 10%. The acquisition of Beijing Wonner is not only a strategic plan for innovative medicines, but also an advanced plan for the sharp increase in patients with depression recovering from COVID-19 pandemic. In the future, Shineco will continue to focus on the innovation of the pharmaceutical sector, increase investments in R&D of new medicines and medical technology upgrades, as well as contribute to the long-term development of the biomedical industry and the treatment of depression globally.”
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Source: Biospace