Endovasc subsidiary Nutraceutical Development Corporation (NDC) has signed a product licensing agreement with Basic Research to develop its body building supplement technology for nutraceuticals.
Endovasc's technology is based on pyrrolidine alkaloid, which has been found to recruit and mobilize stem cells in the body. Taken during exercise, it can speed up muscle mass and strength, according to the firm.
Basic Research has agreed to invest a minimum of $2.5 million in developing and commercialising the technology and will pay Endovasc a 10 per cent royalty on revenues generated, with a benchmark of $2 million minimum royalty beginning on the second year.
Dr David Summers, chairman and chief executive officer of Endovasc, said it was "an extremely important" development for Endovasc because it could begin generating substantial revenue this year. Endovasc is an early-stage drug delivery company, with drug-delivery stents in its portfolio.
He said Basic Research will be able to produce and market the body building supplement for body builders and athletes who want to quickly improve their strength and muscle mass.
Dennis Gay, CEO of Basic Research, said the firm had conducted research on Endovasc's technology and was "confident that the combination of their newly discovered natural alkaloid found in many plants and our ability to commercialize and sell nutraceutical products will result in an extremely profitable venture".