West Perth-based Eastland Medical Systems Ltd's South African subsidiary Eastland Medical Systems South Africa Ltd will produce anti-malaria medication for the entire continent under a new agreement with Star Medical (Botswana) Ltd.
West Perth-based Eastland Medical Systems Ltd's South African subsidiary Eastland Medical Systems South Africa Ltd will produce anti-malaria medication for the entire continent under a new agreement with Star Medical (Botswana) Ltd.
The companies signed a Sub-Saharan Africa distribution agreement for the drug in December.
EMSSA also disclosed it would teminate an August 2005 agreement to purchase 80 per cent of South African medical device manufacturer Elite Surgical Supplies (Pty) Ltd in light of the agreement.
The full text of a company announcement is pasted below
Eastland Medical Systems Limited, through 65%-owned subsidiary Eastland Medical Systems South Africa (Pty) Ltd (EMSSA), has signed an exclusive manufacturing Agreement with Star Medical (Botswana) Limited to produce a new antimalaria
treatment for the 54 countries within Africa.
Manufacturing is expected to begin in mid 2008, following the completion of South African regulatory approvals on the anti-malaria treatment and the establishment of approved manufacturing facilities.
A recently conducted clinical validation study of the new treatment in Nigeria found a 100% effective success rate in all patients tested.
Eastland CEO Dermot Patterson said: "As a result of the newly acquired contracts, EMSSA has advised that it has terminated the agreement executed in August 2005 to purchase an 80% equity in South African medical device manufacturer Elite Surgical Supplies (Pty) Ltd.
"Negotiations are currently underway to acquire a new manufacturing plant to facilitate the production of both the anti-malaria treatment and Eastland's ClipOn safe needle device. The facility will house a central clean room to the highest ISO standards and
incorporate assembly lines and filler stations within the one operation. This will have considerable cost saving advantages to the Group and will maximize profitability. "
Today's Agreement follows the signing of a distribution Agreement between EMSSA and Star in December which granted EMSSA the rights to distribute the new treatment to the 47 countries within Sub-Saharan Africa.
"The signing of the Manufacturing Agreement is a key component in Eastland's plan to become a key provider of anti-malaria treatment to the world's most affected regions.
"Securing the rights to manufacture and distribute the product means Eastland can create greater supply chain control.
"Partnering with Star - an established African company - will allow Eastland, through EMSSA, to strengthen its African operations by providing greater access to existing networks and creating new opportunities for expansion," Mr Patterson said.
