PharmaPrint Shares Jump

Shares of PharmaPrint Inc. soared in unusually heavy trading Thursday, a day after the company said it has a contract to sell and eventually manufacture its herbal-based health products in Asia.

Irvine-based PharmaPrint, which is trying to rebuild after its only major customer decided last fall to sever ties, provided financial details Wednesday about a previously announced contract to form a joint venture with a unit of China New Industries Investment Co.

On Thursday, shares rallied as high as 52% on the news, but those gains eroded. The stock gained 69 cents, or 48%, to close at $2.13 a share. The 6.1 million shares that traded hands on Nasdaq was more than 12 times the daily average volume of 451,000 shares.

The hike in value marked the second straight day that shares moved up. The stock gained 47 cents a share Wednesday. A year ago, it was trading at nearly $15 a share.

The deal with ShenZhen ZeGu Venture Capital Co. was initially disclosed in November, but terms weren’t announced until Thursday. PharmaPrint will contribute exclusive rights to its technology in the Asia-Pacific region in exchange for 51% of the joint venture. ShenZhen ZeGu will contribute $6 million in cash in exchange for 49% of the venture.

News of the deal comes three weeks after PharmaPrint was informed that it no longer meets Nasdaq’s listing requirements. The company was granted a hearing on Feb. 11, when it intends to present a plan demonstrating its ability to comply with the exchange’s minimum requirement for net tangible assets.

PharmaPrint had been supplying ingredients for America Home Products Inc.’s Centrum brand. But the Madison, N.J., giant cut orders late last summer and gave formal notice that it will terminate the contract in a year. The companies have lawsuits pending against each other.