Asep Medical Holdings Inc. (CSE: ASEP) (OTCQB: SEPSF), a Canada-based company dedicated to addressing antibiotic failure by developing novel solutions for significant unmet medical needs, announced on Friday that it entered into a joint venture term sheet with Sansure Biotech Inc., a China-based medical diagnostic company.

The term sheet serves as a road map for a joint venture in preparation for the research, development, use, sublicensing and commercialisation of SepsetER, Asep Inc.'s first-generation sepsis diagnostic kit to be utilised in the Chinese market. Under this contract, Sansure is to make a capital investment in the joint venture, and Asep Inc. is to sublicence its SepsetER patent rights for the Chinese marketplace and receive a royalty when the test is marketed.

Both companies will continue to negotiate the specific partnership terms toward the target of entering into a definitive agreement in the coming months. The transaction is claimed to represent the growing global interest in Asep's early sepsis diagnostic, developed utilising artificial intelligence that the company said has has proven highly accurate in clinical studies to date and is projected to save lives, significantly affect hospitals' bottom line, and decrease antibiotic usage in non-sepsis patients, thus preventing antibiotic resistance.