Starpharma Holdings Limited announced that it has signed a sales and distribution agreement for its nasal spray product VIRALEZE in Hong Kong and Macau with Hengan Pharmacare Company Limited, a subsidiary of Hengan International Group Company Limited ("Hengan Group"). VIRALEZE will be available in Hong Kong and Macau through an extensive network of retail stores and other channels, including via leading pharmacy chains. In addition to the VIRALEZE brand, the product will also carry Hengan Group's local brand which is also used for their COVID-19 related products such as face masks and rapid antigen tests.

Marketing activities for VIRALEZE will be supported with investment by Hengan Group. The exclusive distribution agreement has an initial 2-year term and covers Hong Kong and Macau. It incorporates launch performance obligations.

Under the agreement, Starpharma will supply VIRALEZE, with Hengan Group responsible for sales, final packing, distribution, and marketing in Hong Kong and Macau. Launch of the product is expected to occur in the next 2- 3 months. Starpharma is working with Hengan Group to support importation and regulatory activities.

The termination provisions are customary for commercial sales and distribution agreements. At this early stage Starpharma is unable to estimate sales of VIRALEZE in these markets.