Health Advance Inc (OTCMKTS:HADV) has finalized a non-binding LOI to buy certain exclusive product formulations for the maker of generic medications from Patrick O’Charchin, a resident of Canada. The acquisition is contingent to due diligence by company, and the negotiation and implementation of a definitive deal. The deal will be subject to specific terms including the firm issuing its shares in lieu for the formulations of O’Charchin. Health Advance will evaluate the value of the formulations and anticipates the due diligence period to be around 4-6 weeks.

The highlights

The firm considers the Letter of Intent is the subsequent stage in its development and growth. Upon closure of the Hantian deal, Health Advance will use the strategic deals formed by Hantian to market, promote and develop the formulations that will offer company with the immense opportunities. The formulations are as of now active in the various areas; Central Nervous System medications like anti-convulsants as well as anti-psychotics, Anti-Infection medications like erythromycin opthalmic ointment, Topical Dermatology medications, other drugs and also hormonal drugs.

Generic medicines are bioequivalent and therapeutic equivalent substitutes to brand name medications that have lost the exclusivity of patent protection. They provide the similar active chemical unit as trade name goods, but vary as per inert substance formulations. The list of inert ingredients comprises binders, fillers, flavorings, artificial colors etc. Since they may impact the bioavailability or performance of the active element, bioequivalence trials must be performed by manufacturer’s and given to the FDA prior to approved sale of new generic products.

This file will reflect that the generic medication has the same ingredients in the equivalent ratio as the brand product and acts the same as the main product when taken. Once this submission file of Health Advance is assessed by the U.S. FDA and bioavailability and bioequivalence are confirmed, an approval for sale is given and the drug may be commercialized. All of the formulations held by O’Charchin have bioequivalence trials closed which will lead in considerable time and cost savings.