Advanced Aesthetic Technologies and China National Biotec Group Announce Strategic Cooperation
BROOKLINE, Mass., Sept. 19, 2019 /PRNewswire/ -- Advanced Aesthetic Technologies, Inc. (AAT), a leader in aesthetic gel implant technology, and China National Biotec Group (CNBG), a subsidiary of China National Pharmaceutical Group Corporation (SINOPHARM) today announced the execution of strategic cooperation agreements. This new relationship is based on CNBG's recognition of AAT products and AAT's recognition of CNBG's leading position in the biopharmaceutical field in China, and establishes a partnership of in-depth cooperation on equity and products. According to the agreement, CNBG will take a major, but non-controlling equity position in AAT in exchange for an investment into AAT, and Lanzhou Biotechnique Development Co., LTD., a subsidiary of CNBG (hereinafter referred to as "Lanzhou Company") will be responsible for obtaining required Chinese regulatory approvals and the distribution of AAT products, Algeness® in mainland China.
CNBG is the largest Chinese biopharmaceutical company and the Lanzhou Company is the sole producer of botulinum toxin in China. Hengli® (LANTOX) is the market leading botulinum toxin in the China market, distributed to over 6500 medical aesthetics institutions in China and holds over 75% of the Chinese BTXA market.
Advanced Aesthetic Technologies, Inc.'s Algeness® is a patented family of fully resorbable injectable gel implant dermal fillers that are 100% natural, providing advantages in terms of safety, skin rejuvenation, and natural looking results both at rest and during facial movement. Typical clinical advantages include minimal swelling upon injection and immediately visible results. Algeness holds a CE Mark and is currently distributed in over 30 countries worldwide. AAT has begun efforts to obtain US FDA approval.
Doug Abel, President and CEO of AAT commented, "We are delighted to enter into an exclusive relationship in China with CNBG. Their excellence in biopharmaceutical development and the Lanzhou Company's leadership in the Chinese aesthetic market make them the ideal partners to work to bring Algeness through the approval process in China and ultimately to the market. We are also pleased that CNBG recognizes the potential that Algeness has to revolutionize the dermal filler market. In combination with our ongoing fund raising efforts, the investment by CNBG will allow us to work to advance Algeness to FDA registration including completion of the required clinical trials. Our anticipated entry into the China and US markets represent major value creation steps for AAT."
According to AAT Board Member, Los Angeles, CA plastic surgeon Brian M. Kinney, M.D., F.A.C.S., "Algeness represents a soft tissue filler 'implant' that fills an unmet need for practitioners and patients by delivering immediate results with minimal swelling and side effects or impact on the immune system. In addition, it goes beyond simply providing volume to providing projection and shape. My patients request safe, natural products with natural looking and feeling results. Algeness has the potential to match these patient demands in a new and innovative way."
Algeness is the all-natural, biodegradable, biocompatible agarose-based gel implant, free of all synthetic or cross-linking chemicals. Algeness dermal fillers are able to add immediate volume in the facial area with excellent persistence without the added cross-linking chemicals found in Hyaluronic Acid fillers. Algeness is available in four concentrations of agarose in order to match specific cosmetic improvements of the lips, fine lines, and the folds around the mouth and for shaping and volumizing the cheeks, jawline and other areas. With the CE Mark certification, Algeness is available in 33 countries in Europe, Latin America, Asia, and the Middle East.
About China National Biotec Group
CNBG is a wholly-owned subsidiary of Sinopharm, China's largest pharmaceutical and healthcare group, with core businesses including distribution, retailing, research and manufacturing of healthcare related products. CNBG is the exclusive manufacturer of botulinum toxin A in China that enjoys an approximate 77% market share in China. With more than 20 years of operations, the company has established a deeply-rooted network throughout China for sales and distribution of therapeutic and medical aesthetic products that covers all major clinical departments. Hengli, the trademark of CNBG, is recognized as one of the most influential brands in the field of medical aesthetics. CNBG is also one of the largest producers and suppliers of vaccines and plasma-derived products in China. The healthy organic growth in the core business segments have generated continued steady cash flows for its business expansion.
About the Aesthetic Industry
According to Market Research Future, the global dermal fillers market is expected to grow at a compound annual growth rate of 12.5% over the next five years and is expected to reach $10 billion by 2023. The major factors driving the growth of this market are increased demand by both practitioners and consumers towards the use of minimally invasive and non-invasive procedures.1 Worldwide more than 8.5 million injectable procedures are performed annually by plastic surgeons, dermatologists and other practitioners.2 According to the American Society for Aesthetic Plastic Surgery, in 2018 in the US alone, plastic surgeons performed over 2.6 million injectable procedures, with 30% consisting of hyaluronic acid injections for a total of over $1.15 billion. The number of injectable procedures performed in the US has increased by 39% in the past five years.3
Algeness® and Master Your Results® are registered trademarks of AAT, Inc. and its subsidiary Algeness-Europe Ltd, Ireland.
Cautionary Note Regarding Forward-Looking Statements
AAT cannot assure that the transactions contemplated by the cooperation agreements will close in a timely manner, if at all. These transactions are subject to various risks and uncertainties. All statements other than statements of historical fact made in this press release are forward-looking statements and are not guarantees of future performance. Actual results may differ materially from those in the forward-looking statements.
SOURCE Advanced Aesthetic Technologies, Inc.