Singapore-  Wize Pharma, a clinical-stage biopharmaceutical company focused on the treatment of ophthalmic disorders, announced that it has signed an exclusive distribution agreement with HPGC Medical Co., Ltd. (HPGC) for the distribution in China by HPGC of a formula known as LO2A, a drug developed for the treatment of dry eye syndrome (DES), and other ophthalmological illnesses, including Conjunctivochalasis (CCH) and Sjögren's syndrome (Sjögren's). HPGC is a division of Harbin Pharmaceutical Group Co. Ltd., one of China's largest healthcare companies with 20,000 employees and assets worth $2.9 billion.

Per the terms of the agreement, Wize has assigned to HPGC the exclusive rights to distribute LO2A in China for the indications of DES, CCH, and Sjögren's. HPGC is responsible for obtaining regulatory approval for LO2A in China, as well as all costs associated with clinical trials, if needed, and registration fees. The agreement includes minimum quantities of LO2A to be purchased by HPGC from Wize, after obtaining the necessary regulatory approvals in China. Based on quantities outlined in the agreement, Wize expects between $22.5 million and $40 million in sales in China over a five-year term following the receipt of the necessary regulatory approvals in China, however there is no guarantee that such approvals will be obtained.

"We are very pleased to enter this agreement with HPGC, a leading pharmaceutical company in China. We have established a firm timeline for milestones around regulatory approval and expect regulatory clearance in China in the next year-and-a-half. Upon approval, HPGC's distribution channels will deliver LO2A to a substantial national market. We are pleased to partner with HPGC to deliver an effective and safe dry eye product in China," stated Wize's Chairman, Ron Mayron.

The ophthalmology market in China is growing at a CAGR of over 11% and is expected to reach $4.5 billion in 2023, according to Market Scope.