CMER Eye Care (03309) Enters Joint Venture Agreement to Develop Innovative Therapeutics in Ophthalmology and Oncology

C-MER Medical (03309) announced that Dr. Dennis Lam and C-MER Medical Group entered into a joint venture agreement on July 6, 2023, to jointly invest in and develop innovative drug projects in ophthalmology and oncology.

According to the joint venture agreement, when there is a capital need during the course of the joint venture business, within 10 business days after the joint venture company issues reasonable notice to the joint venture parties, Dr. Dennis Lam and C-MER Medical will respectively provide shareholder loans to the joint venture company in cash according to their respective equity proportions in the joint venture company (i.e., 70% and 30% of the registered capital of the joint venture company) for up to US$4.67 million (approximately HK$36.4 million) and US$2 million (approximately HK$15.6 million), to support the joint venture company in promoting and achieving its business objectives.

Leveraging the healthcare service network established in Hong Kong, China, and mainland China, particularly in the Greater Bay Area, C-MER Medical Holdings Limited, along with Dr. Dennis Lam, frequently engages with various innovative drug development projects in the fields of ophthalmology and oncology. Specifically, three hospitals under the group have been approved as designated hospitals under the Guangdong-Hong Kong-Macao Drug and Medical Device Pilot Program. Under this policy, these hospitals can utilize a fast-track approval process to access innovative pharmaceuticals and medical devices that have already been approved and are in use in Hong Kong, China.

On the other hand, Dr. Lin Shun-Chao is the founder and editor-in-chief of the Asia-Pacific Journal of Ophthalmology. According to Clarivate Analytics, its impact factor ranks seventh globally among 62 selected ophthalmology journals worldwide and ranks first in Asia.

By establishing a joint venture and entering into a joint venture agreement, the Group can leverage Dr. Dennis Lam's medical expertise, global network, and reputation to gain excellent access and make investments in innovative drug projects within the ophthalmology and oncology fields. This aligns with the company’s strategy of investing in upstream opportunities along the value chain, creating growth momentum for the Group.