Prometic, SRAM form China JV

Prometic Life Sciences Inc. (TSX:PLI; OTCQX:PFSCF) said it is forming a joint venture with Shenzhen Royal Asset Management to develop three Prometic candidates in China. The JV, Prometic ChinaCo, will focus initially on diabetic kidney disease and fibrosis of the lung and liver.

SRAM will invest $13 million up front plus $10 million in 2H17, giving it a 17% stake in the JV. Prometic said the funds will be used for ex-China clinical development, and are meant to de-risk the Chinese development and regulatory process. Based on milestones in 2018, SRAM may invest another $10 million to boost its stake to 25%...