Under the terms of the agreements, Prometic is licensing the development, manufacturing and commercialization rights for PBI-4050, PBI-4547 and PBI-4425 (the "Products") for the Chinese market with an initial focus on pulmonary and liver fibrosis to a new subsidiary, Prometic ChinaCo (name subject to the approval of the relevant authorities). Prometic is also licensing the development and commercialization rights for the Products for the Chinese market for specific fibrosis indications to a SRAM affiliate.

SRAM's initial funding of $33 million is earmarked for the clinical development of the Products, currently on-going outside China. Of the $33 million, $23 million is receivable in the second half of 2017 with follow-on tranches expected in 2018. SRAM's ownership would increase up to 25% in Prometic ChinaCo when all funds are received.  Prometic ChinaCo controls the bulk manufacturing of the Products which it will exclusively supply to sub-licensees in China. Prometic ChinaCo is to receive royalties for the net sales of the Products from sub-licensees.

"We are very excited about the potential of the Products being developed under this joint project and have already acquired a China-based pharmaceutical company to serve as the development and commercial platform, initially for PBI-4050 in diabetic kidney disease," said Mr. Yu Huang, founder and chairman of SRAM. "A recent study published in The New England Journal of Medicine, indicates that there are approximately 114 million individuals with diabetes in China, with an estimated 24 million of those patients suffering with chronic kidney disease in 2015. We are therefore committed to advancing rapidly the clinical development of PBI-4050 for diabetic kidney disease in China."

Pierre Laurin, president and CEO of Prometic, stated, "Beyond its financial contribution, SRAM will provide Prometic with the required local clinical, regulatory and operational expertise to efficiently execute in and capitalize upon the rapidly expanding Chinese market. The joint venture leverages Prometic's R&D and clinical expertise and leadership, especially in the areas of fibrosis and autoimmune diseases/inflammation. The joint venture is also actively pursuing additional partnering transactions to further leverage the value of its products in targeted indications in China and provide additional funding."