Eastland acquires 30% of Star for $900k

West Perth-based medical company Eastland Medical Systems Ltd has acquired a 30 per cent stake of African drug developer Star Medical (Botswana) Ltd for $900,000, the company announced today.

Eastland's 65 per cent owned subsidiary Eastland Medical Systems South Africa Pty Ltd signed an exclusive manufacturing agreement with Star earlier this month, for the production of an anti-malaria treatment to be distributed throughout Africa.

The full text of a company announcement is pasted below

Eastland Medical Systems Ltd has acquired a 30 per cent stake in African drug development company, Star Medical (Botswana) Limited - a key partner in Eastland's African Malaria project - for $900,000.

Star Medical holds the exclusive rights to the Intellectual Property for a patented new anti-malaria treatment for Africa.

Earlier this month, Eastland Medical Systems South Africa Pty Ltd signed a Manufacturing Agreement allowing EMSSA to manufacture the new treatment for all 54 countries within the continent of Africa. This followed the signing of a Distribution Agreement with Star in December 2006 allowing EMSSA to distribute the treatment to all 47 countries within sub-Saharan Africa.

Eastland CEO Dermot Patterson said: "Eastland's interest in Star is an integral element of Eastland's overall strategy to expand its market penetration within Africa and to allow the Company to increase its role in combating health issues and assist in the control of major diseases such as malaria in Africa."

Star Medical Chairman Dr Kwame Amuah said: "It is fitting for two companies with similar goals to work together on a project which holds such importance for the health of so many Africans."