Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF) has secured a non-binding, non-exclusive Heads of Agreement (HoA) with leading pharma and healthcare products company, China Chemical & Pharmaceutical Co., Ltd., which will introduce Sierra Sage Herbs LLC products to the Taiwanese animal healthcare market.
The move gives Creso access to the Taiwanese petcare market, where spend on pet care-related products grew from US$283.2 million to US$402.9 million in 2019 alone.
A move into Taiwan highlights Creso’s focus on international growth, giving it an established in-country partner to potentially drive sales growth.
An important relationship
China Chemical & Pharmaceutical Co (CCPC) is a publicly-listed company with a market capitalisation of ~A$321 million.
Founded in 1952, it is dedicated to innovation, research and development, and manufacturing of pharmaceutical and healthcare products for use in humans and animals.
It has its own in-house sales team directly servicing veterinary clinics with animal medications throughout Taiwan.
CCPC will select products from the Sierra Sage Herbs (SSH) range with initial focus on SSH’s plant-based Animal First Aid.
There is also scope for Creso and CCPC to expand the range of current and future products for collaboration.
Creso Pharma and CCPC are working towards establishing a Collaborative Agreement on or before August 31, 2022.
There is a two-pronged focus under the HoA.
1. Commercialise select products from Creso Pharma’s target acquisition company SSH's pet care product range in the Taiwanese market. The initial focus will be on SSH’s Animal First Aid product.
2. Explore further commercialisation options for current and future innovative products. Product interest extends to Animal Pain Relief, Animal Castile Wash, Bugs Be Gone and potential future innovative products from SSH/Creso Pharma's product development pipeline.
Creso Pharma CEO and managing director William Lay said of the agreement: “CCPC is one of Taiwan’s leading healthcare companies. Their products are widely used in hospitals and households throughout Taiwan, which has led to them becoming a trusted provider.
"We’re delighted to collaborate with such a great partner on developing a brand new market for our animal care products. We view this development as a testament to the broader opportunity we see for the Green Goo range in other international markets.”
Sierra and CCP look forward to collaborating
Sierra Sage Herbs CEO and co-founder Jodi Scott said: “Pet parents love our Green Goo products because they are all-natural, plant-based and highly effective. We’re delighted with the feedback we have received from product evaluations in Taiwan and are grateful for the great work done by CCPC to get us to this stage.”
CCPC's Animal Health Division director Jason Wang said: “We are delighted to reach this milestone in our collaboration with Creso Pharma. The all-natural Green Goo product range is right on trend with expectations from pet owners in Taiwan and we are committed to maximising the potential of these great products.”