Laguna Hills-based PharmaCyte Biotech licensed technology from China-based Hai Kang Life Corp. Ltd. to use in coronavirus test kits the OC company said it’s developing.
PharmaCyte is conducting diagnostic tests on its product per U.S. regulations, exempt from premarket approval and Food and Drug Administration oversight at a single laboratory. If successful, commercialization would follow.
PharmaCyte will pay Hai King $6,000 a month, increasing to $50,000 monthly if the product gets FDA approval. Hai King also gets 10% of net sales once the test kits are marketed.
The biotech said it can’t guarantee success in the creation or commercialization of the test, or its ability to develop the product in a “timely manner.”
Shares in the penny stock (OTC: PMCB) traded up about 5% at midday for a $46 million market cap.
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