Avivagen (TSX-V:VIV) has signed an agreement with Shaanxi Jintai Mining, a widely diversified Chinese company, to form a joint venture company to commercialize OxC-beta Livestock in China.
The JV will initially target OxC-beta for use in poultry and swine, with an option for use in cattle and goats (bovines and caprines).
The JV will be owned 51% by Jintai and 49% by Avivagen, with equal representation on the board of directors and joint decision-making. It will be based in Xi'an, Shaanxi Province.
The agreement specifies that Jintai will invest up to about $1.2-million (Canadian) into the JV to fund activities relating to the registration and commercialization of OxC-beta in China. The parties also expect the JV to enter into an exclusive distribution and supply agreement with Avivagen.
In a statement, Shen Xiaobo, president of Jintai, said the company believes that OxC-beta offers an optimal alternative to in-feed antibiotics and should enable a material reduction in their use.
Cameron Groome, president and CEO of Avivagen, said the company and its collaborators have successfully completed 13 trials of OxC-beta in broiler poultry and swine.
“We now look forward to completing registration-oriented trials for these two species in China,” he added. “Approximately 180 million metric tons of livestock feed are consumed in China each year, making this a large opportunity for Avivagen and Jintai to benefit both society and their shareholders."