Stemcell United Ltd. entered an agreement with a unit of China Tobacco Corp. to set up a plant stem cell research center.
Under the deal with Yunnan Hongyi Agriculture Development Co. Ltd., Sydney-based Stemcell United will invest an initial capital of 1 million Chinese yuan for 50% of the equity in the research center, called Hongyi SCU Biotech and Innovation Center.
The research center will study dendrobium stem cells for use in skin care indications. The center will also research into using tobacco plant stem cell for in the growing and production of active ingredients for pharmaceutical and healthcare applications.
The center will also tap into Stemcell United's network in Southeast Asia, the company said in a news release.
The collaboration will initially last five years and is extendable by another five years.
As of Oct. 3, US$1 was equivalent to 7.14 Chinese yuan.
