At its annual shareholder's meeting, Royal Pharmaceutical Corp. announced the signing of an agreement with several prominent Mexican businessmen which establishes a new biotechnology company in Mexico.

Royal owns 49 percent of the new company under the joint-venture agreement.Royal Chairman Mark Kendell said the primary focus of the new joint venture is to further develop Royal's potential anti-viral, anti-inflammatory drug, R-30B, for registration approval and manufacturing in Mexico.

"The company is taking steps to increase its presence internationally," said Kendell. "The Mexican joint venture is an important step for Royal, and we hope to duplicate this effort in other sectors of the world."

The new company and its Mexican partners have access to manufacturing facilities which can produce up to 80 million units per month. "With this kind of potential at our fingertips, Royal is seriously looking at marketing bulk chemicals, and other pharmaceutical products," said Ken-dell.