Hanover Portfolio, which owns IP Resources, says that the agreement is an international commercialization and licensing agreement with Personal Cell Sciences, which holds the U Autologous skin care brand.
U Autologous is the claimed to be the first brand of its kind in the world that is personally designed by using an individual’s own replicated stem cells.
Agreement for commercialiaztion and distribution
The agreement builds on an exclusive license between Personal Cell Sciences and BALS holding for the commercialization and distribution of U Autologous in Hong Kong and Macau.
The deal means that IP resources will receive royalty revenues from the distributor’s future sales of the product in those two markets.
The reason why the licensing arrangement is specific to Hong Kong and Macau is because they are former colonies and now special administration regions of China – which makes them gateways to this vast and still fast growing market.
Eyeing significant future market growth
The companies are expecting to tap into a skin care market, which in the Asia Pacific is estimated to be worth $41.9 billion and is predicted to see an annual growth rate above 5 percent (CAGR, putting the forecast value of the market at almost $58 billion by 2016.
"With Hong Kong and Macau being major luxury shopping destinations for mainland China, one of the largest and fastest growing skin care markets in the world, we believe Personal Cell Sciences' personalized skin care line will gain traction in this thriving market," said Alan Collier, CEO and chairman of Hanover Portfolio Acquisitions and IP Resources International.
"This licensing transaction is an important milestone and example of IP Resources' ability to execute on its core business of commercializing and monetizing innovative technologies through joint ventures and international licensing agreements."