Phynova intends to develop the Drug Candidates by conducting preclinical tests and in some cases clinical trials. Phynova will then seek to out-license the Drug Candidates to pharmaceutical companies. By selecting Drug Candidates whose efficacy and safety have already been established in China, Phynova expects to be able to reduce the time taken to bring the drugs to market. Similarly, it hopes to be able to take advantage of the US FDA's recent Guidance for Industry- 'Botanical Drug Products', 2004 and, where possible, to fast track the registration of its Drug Candidates.
Legislation around herbal OTC products have recently been amended and as of April 2011, all herbal medicinal products must be registered to remain on the market. The new EU Traditional Herbal Medicinal Product (THMP) Directive allows for fast-tracked registration of many herbal OTC products providing they have been marketed for at least 30 years. Phynova intends to register several Chinese herbal products under this scheme.