Bioxyne’s (ASX:BXN) shares were last trading 10.5% higher intra-day after signing an agreement to market its probiotic products in China using the e-commerce platform JD.com starting in Q2, 2017.
With 155 million active customer accounts, JD.com, headquartered in Beijing, is one of the two largest consumer internet retailers in China by transaction volume and revenue.
Initially, Bioxyne will launch two products that it has registered with the Therapeutic Goods Administration, and launched in Australia in Q4 2016.
These are Progastrim (for gastrointestinal and immune health) and proTract for atopic dermatitis/eczema.
Bioxyne has executed an agreement with Quality Brands International Direct (QBID) for its Chinese entry.
QBID is an Australian company that provides a one-stop online shop for commercial entry of Australian products into several markets including China, India and the Middle East.
Under the agreement, QBID will provide translation of Bioxyne’s marketing materials into the local language, engagement with customers, handling of logistics and regulatory requirements.
Bioxyne will supply up to five products that will be marketed through the QBID online portal in JD.com.
The company is in the process of developing further products based on its proprietary probiotic, Lactobacillus fermentum PCC, for launch in Australia and China in 2017.
Bioxyne had a cash balance of $1.2 million as at 31 December 2016.