Immuron (ASX: IMC) has entered into an agreement with specialist distributor IntegraMed Asia for the sale of the company’s Travelan® product in five southeast Asian markets which collectively attracted over 44 million tourists in 2010.
Travelan® is a novel, over the counter product that is up to 90% effective in preventing travellers’ diarrhoea.
This is an important milestone for Immuron, marking the start of first sales of the product in Thailand, Hong Kong, Cambodia, Vietnam and Laos – countries in which travellers’ diarrhoea is endemic.
IntegraMed Asia is a licensed seller in the Indo‐China market with branches in Bangkok, Singapore and the United Kingdom.
Under the distribution agreement, IntegraMed Asia is required to attain regulatory approval for the sale of Travelan® in its licensed countries and to sell specified minimum volumes.
The company has already begun the regulatory approval process.
Funding agreement
Earlier this year Immuron secured a A$1.5 million (C$1.5 million) funding agreement with Paladin Labs to continue expansion of its Travelan® product into other territories.
Under the agreement, the initial drawdown will be C$1 million, including a coupon rate of 10% and not repayable until three years from the date of initial drawdown.
Under a licence agreement signed by both parties in late November, Paladin receives exclusive rights to commercialise Travelan in certain territories, including Canada, Latin America and sub-Saharan Africa.
Immuron received an upfront licence fee of C$500,000 for those territories from Paladin and will receive additional performance milestone payments over the term of the licence.
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