McGaw Signs Pact for Its Products to Be Sold in Asia

McGaw Inc., a privately owned manufacturer and supplier of nutritional and intravenous products, said Thursday that it has signed a licensing agreement with a Taiwanese drug company to make and sell a line of McGaw’s products in Asia.

The 10-year agreement, which still needs approval by the Taiwanese government, would give McGaw an unspecified amount of royalties on about $13 million a year in sales anticipated from the pact.

McGaw spokesman Lawrence Watts said the company will receive an initial payment of $500,000 when the deal is OKd by authorities. That approval is expected to come within two months and is considered a formality. No U.S. government approval is needed.

“It’s actually been signed, sealed and delivered,” Watts said. “We expect no problems.”

Under terms of the agreement, Taiwanese drug company Nang Kuang Pharmaceutical will be licensed to manufacture, market and distribute a line of products that aid patients who are unable to gain nutrition because of metabolic problems.

For instance, Nang Kuang will be licensed to sell McGaw’s HepatAmine, a drug for patients with liver disease; TrophAmine, which is used for malnourished infants, and Immun-Aid, an oral drug that is used for patients with lowered immune systems. People with AIDS, as well as chemotherapy and burn patients, are examples of those with lowered immune systems.

Nang Kuang will market the products primarily to hospitals in Taiwan, mainland China, Thailand, Pakistan, India, Indonesia, the Philippines, Vietnam, Malaysia, Singapore and Hong Kong.