Industrial Biotechnology Corporation and Chunghwa Chemical Synthesis & Biotech Co. Ltd. have announced that they have entered into a strategic process development and manufacturing and production agreement.
The terms of the agreement include Chunghwa receiving equity of IBC in lieu of cash compensation for process development and scale-up of IBC selected chemicals for commercialization, and a production and manufacturing proposal for the mass biological production of IBC selected chemicals.
David West, Director and CFO, stated, "This agreement with Chunghwa is an important milestone. It demonstrates our proof of concept, and third-party validation from a credible outside third party, of our value proposition."
"The industrial biotechnology sector and the biological production of chemicals are projected to grow enormously."
"This agreement helps position IBC as a biological infrastructure and technology company that will assist and enable this global biological transition, which is now underway."
Dr. Mark Truei, Ph.D., IBC VP of Manufacturing and Production, said, "I am very pleased to see the establishment of the partnership between Chunghwa and IBC."
"Chunghwa is a leading player in contract manufacturing. It has developed an outstanding reputation over its 50-year history and it has extensive experience with U.S. clients."
"Particularly, this partnership also confirms the value of IBC technologies and products in terms of its cost effectiveness, broad product list, more healthy products and environmental friendly manufacturing processes."
"I am very confident that many other major players, as manufacturers and distributors, will follow Chunghwa soon to join the alliance to become part of the IBC family."
"IBC has licensed and developed revolutionary technologies for using microbial fermentation/enzyme transformation to produce high-value biological-produced chemicals," said Dr. Steve H. Chang, President of Chunghwa.
"These technologies greatly reduce the production costs of many chemicals that currently can be only manufactured from complicated and costly methods of chemical synthesis and/or extraction from natural materials. These technologies enhance and complement our company and R & D enormously."
"By combining IBC's new break-through technologies with Chunghwa and our over 40 years of experience in process development and contract manufacturing under strict GMP regulations, the partnership of these two companies will expedite the commercialization of several important targeted chemicals."