The company said that this distribution agreement for Taiwan and China is for an initial period of two years, but could then be extended by mutual agreement.
The products that will be distributed in Asia include children's multi-vitamins, vitamin C and echinacea dissolve-in-the-mouth films.
The supplements will be manufactured by BioTec Films in Tampa, Florida and will be distributed by AXM Pharma under the Sunkist brand and AXM Pharma's house brands.
"This agreement with AXM Pharma represents our first foray into the highly lucrative Chinese marketplace in an extremely cost effective manner, and I am confident that it will add at least $2 million to our revenues during the initial two year period, with the majority of this flowing straight through to the bottom line," said Graham Hind, CEO of BioProgress.
"AXM Pharma has a solid track record of marketing and distributing pharmaceutical products throughout China and we are well positioned to benefit from their existing channels to market," he added.
AXM Pharma has 10 vitamin and nutritional supplements marketed in China under the Sunkist trademark.
AXM Pharma and Sunkist Growers entered into an agreement in March, granting AXM the exclusive rights to use the Sunkist brand name and trademark for its vitamin and vitamin supplement products in China.
AXM were also given a right-of-first-refusal to use the brand name for these products in territories in Asia where there is no licensee.
Sold in more than 50 countries, Sunkist branded products generates more than $2 billion in annual sales.
AXM is focusing its marketing efforts on China because it is one of the fastest growing OTC markets in the world. A recent IMS (Shanghai) China Market Analysis shows that the country's OTC pharmaceutical market is currently valued at approximately $2.5 billion and is forecast to grow to approximately $4 billion in 2005. This represents an annual growth rate of about 30 percent.
New legislative initiatives and the accelerating pace of development in the Chinese retail pharmacy sector also substantiate the expectations for growth.