Shineco Inc. (TYHT) stock prices were down by 7.49% as of the market closing on October 8th 2021. This brought the price per share down to USD$11.11 at the end of the trading day. Subsequent afterhours fluctuations have seen the stock dip by 13.59%, bringing it down to USD$9.60.
TYHT Stock’s Partnership
October 5th 2021 saw TYHT stock announce having entered into a framework agreement with Beijing Wonner Biotech. As per the agreement, the producer and distributer of Chinese herbal medicines, organic agricultural and hemp and other biotech products will acquire a 51% equity interest in Beijing Wonner. Capped at USD$30 million, the partnership will also jointly develop SNG, a rapid-acting antidepressant natural innovative medicine. The total aggregate price of the transaction will be separately determined on the basis of a third party evaluation report.
About Beijing Wonner
Beijing Wonner is a biotechnology company that engages primarily in the research and development of natural medicines and related products. The company aims to facilitate the promotion of development with innovation and prospective judgments. The company’s research and development focuses on treatments for depression, irritable bowel syndrome, and other immune metabolic diseases. Beijing Wonner boasts 16 patents that have been authorized in China, the United States, and Europe, with applications having been submitted for more than 20 patents worldwide.
Development of SNG Treatment
The jointly developed SNG is a natural product that is extracted and purified from Paeonaie Radux Alba, which is a traditional Chinese medicine. This builds on the expanding scope of natural products becoming rich repositories for new drugs or lead compounds in drug discovery. This is largely owing to their complex structures and biological activities. Statistical data collected from 1981 to 2010 have indicated that 34% of small molecule drugs that have been approved by the United States Food and Drug Administration were natural products or their derivatives. Years of development have seen the development of the rapid-acting antidepressant natural medicine, SNG, which has made breakthroughs and achieved progressive results in the research of biological targeting and mechanism acting. The treatment offers rapid action, a promising safety profile, and cost effectiveness with minimal side effects.
Future Outlook for TYHT Stock
The company is poised to capitalize on the expanded scope of opportunities at its disposal as a result of its partnership with Beijing Wonner. TYHT stock is keen to push for the accelerated development and commercialization of its joint venture in the SNG treatment. Current and potential investors are hopeful that management will be able to effectively leverage the resources at their disposal. This is hoped to facilitate consistent and organic growth in shareholder value over the long term.
