Health Advance Inc (OTCMKTS:HADV) has finalized a non-binding Letter of Intent to buy certain product formulations for the production of generic medications from Patrick O’Charchin. The acquisition is contingent to comprehensive appraisal by Health Advance, and the negotiation and implementation of a definitive deal. This deal will be dependent on the closure of certain conditions including the firm issuing shares in lieu for the formulations held by O’Charchin. The firm will assess the formulations value and anticipates the evaluation period to last nearly 4-6 weeks.
Health Advance believes the LOI is the next stage of its development and growth. Upon closure of the Hantian deal, the firm will use the strategic associations formed by Hantian to advance, promote and market the formulations that will offer Health Advance with the remarkable opportunities. The formulations are presently active in the many areas; Central Nervous System medications like anti-psychotics and anti-convulsants, Anti-Infection medications like erythromycin opthalmic ointment, Topical Dermatology medications such as topical anti-inflammatories and anti-fungals, hormonal Drugs like steroidal medications, and other drugs like ophthalmics.
Generic drugs are bioequivalent and therapeutic equivalent options to brand name medications that have lost the market uniqueness of patent protection. Generic medication provides the same active chemical unit as trade name items, but vary inert substance formulations. These include artificial colors, flavorings, binders, fillers, etc.
Since these elements may impact the bioavailability of the active ingredient, bioequivalence trials must be performed by manufacturer’s and given to the FDA before new generic items are approved for sale. This file will depict that the generic drug constitutes the same ingredients in the equivalent ratio as the brand product termed as bioequivalence and accomplishes the same as the trademark product when taken termed as bioavailability.
Once this file is assessed by the FDA and bioavailability and bioequivalence are established, a support for sale is allowed and the medication may be commercialized. All of the product preparations held by O’Charchin are done with bioequivalence studies, which in turn will result in considerable cost and time savings.