COLLABORATION AGREEMENT

Exhibit 10.18

Portions redacted

* Certain information on this page has been

omitted and filed separately with the

Securities and Exchange Commission.

Confidential treatment has been requested

with respect to the omitted portions.

COLLABORATION AGREEMENT

THIS AGREEMENT is made as of April 30, 2001,

BETWEEN:

Transworld Pharmaceuticals Corporation Inc., a company having offices

at Sassoon House, Shirley Street, Nassau, New Providence, Bahamas, and

Toray Trading Corp. a Cyprus company

("TPh / Toray")

AND:

Dragon Pharmaceuticals Inc., a corporation having an office at 543

Granville St., Vancouver, BC. Canada V6C lX8

("Dragon")

WHEREAS:

(A) Transworld Pharmaceuticals Corporation, together with Toray, having

control and ownership of certain intellectual property, to whit: methods of

formulation of purified bulk recombinant Human erythropoietin (rHu EPO) with

recombinant Hyaluronic Acid (rHA), for the achievement of a novel slow-release

formulation of rHu EPO.

(B) TPh / Toray has agreed to grant certain rights to Dragon to

manufacture and sell the Product in a specified market, and to manufacture the

product on a fee-for-service basis for sale to TPh / Toray;

THIS AGREEMENT WITNESSES that in consideration of $1 paid and other

consideration given, by each party to each other party, the receipt and

sufficiency of which each party acknowledges, the parties severally AGREE as

follows:

PART l

DEFINITIONS AND INTERPRETATION

Definitions

1.1 In this Agreement, except as otherwise expressly provided or as the

context otherwise requires:

(a) Affiliate of a party means a corporation or entity that, directly or

indirectly, controls, is under common control with or is controlled by the

specified party;

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(b) current GMP means current good manufacturing practices as determined

by the World Health Organization;

(c) Indication means the use of the Product to treat a particular

condition as described in Schedule A;

(d) Marketing Approval has the meaning set out in ss.2.9;

(e) Product means the formulation of rHu EPO and rHA achieving a novel

slow release formulation

(f) Purchase Orders has the meaning set out in ss.4.5

Interpretation

1.2 In this Agreement, except as otherwise expressly provided or as the

context otherwise requires,

(a) "this Agreement" means this agreement as from time to time

supplemented or amended by one or more agreements entered into pursuant to

the applicable provisions of this Agreement,

(b) a reference to a Part is to a Part of this Agreement, and the symbol

ss. followed by a number or some combination of numbers and letters refers

to the section, paragraph, subparagraph, clause or subclause of this

Agreement so designated,

(c) headings are solely for convenience of reference and are not intended

to be complete or accurate descriptions of content or to be guides to

interpretation of this Agreement or any part of it,

(d) the word "including", when following a general statement or term, is

not to be construed as limiting the general statement or term to any

specific item or matter set forth or to similar items or matters. but

rather as permitting the general statement or term to refer also to all

other items or matters that could reasonably fall within is broadest

possible scope,

(e) an accounting term not otherwise defined herein has the meaning

assigned to it, and every calculation to be made hereunder is to be made,

in accordance with accounting principles generally accepted in the United

States applied on a consistent basis,

(f) a reference to currency means United States currency,

(g) a reference to a statute includes all regulations made thereunder, all

amendments to the statute or regulations in force from time to time, and

every statute or regulation that supplements or supersedes such statute or

regulations,

(h) a reference to an entity includes any successor to that entity,

(i) a word importing the masculine gender includes the feminine and

neuter, a word in the singular includes the plural, a word importing a

corporate entity includes an individual, and vice versa,

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(j) and a reference to "approval", "authorization" or "consent" means

written approval, authorization or consent.

PART 2

GRANT OF LICENSE

License

2.1 Subject to the terms of this Agreement, TPh / Toray hereby grants to

Dragon an exclusive license to manufacture and sell the Products in the Market

Area for treatment of the Indications. Additionally, Dragon is to be the sole

manufacturer of the product for markets both within its territory, as well as

for territories in which TPh / Toray market the product.

2.2 Nothing in this Agreement confers on Dragon any interest, licence or

right in respect of Products other than as set out herein, and the Products will

remain the exclusive property of TPh / Toray and its Affiliates. Sales outside

of the Market Area are prohibited, unless granted in writing to Dragon by TPh /

Toray. New Drug Licenses and production permits for the product within China are

to be owned by Dragon.

2.3 Dragon will forthwith disclose to TPh / Toray every improvement to or

further development of the Products, including the results of any research,

testing or clinical trials conducted by or on behalf of Dragon. The results of

such research, testing, trials and improvements will be immediately disclosed to

TPh / Toray and will be jointly owned by TPh / Toray and Dragon, without any

obligation of Dragon, with respect to the ownership or use of such information

or the payment of any compensation.

Dragon's Regulatory Obligations

2.4 Dragon will be responsible for obtaining, at its expense, all

registrations from applicable regulatory authorities in order to permit the

manufacture and sale of the product in the Market Area (the "Marketing

Approval"). In particular, Dragon will

(a) Complete any and all actions required to register the product with the

State Drug Administration of the People's Republic of China in order to

obtain a new drug license and manufacturing permit for the product.

2.5 TPh / Toray will use reasonable efforts to assist Dragon in obtaining

the new drug license and manufacturing permit, including providing to Dragon

(a) Results of any and all technical research, to include full results of

pre-clinical, phase I and phase II human studies, and

(b) TPh / Toray will work to achieve optimum formulation methods using

purified bulk EPO provided at no cost by Dragon, and will provide

documentation of same.

(c) Additionally, TPh / Toray will provide hands-on technical assistance

to Dragon affiliates in China and North America during the initial period

of collaboration.

(d) Costs to be borne by either side during the development phase of this

collaboration are as described in Schedule A.

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2.6 All registrations made in order to obtain the Marketing Approval in

China will be made by Dragon on its own behalf and in its own name.

Sublicenses

2.7 Dragon may not grant sublicenses to sell the Products in the Market

Area, except as authorised in writing by TPh / Toray.

PART 3

MARKETING

Marketing Plan

3.1 Dragon, TPh /Toray and their Affiliates will jointly develop a

marketing plan (the "Marketing Plan") for the sale of the products in the Market

Area, which will include targets for reasonable minimum Product sales by Dragon.

The marketing plan will be prepared by September 1 of each year and will cover

the following 12-month period from January 1 to December 31. The Marketing Plan

will be reviewed quarterly by representatives of Dragon and TPh / Toray.

Branding

3.2 Dragon and TPh / Toray will jointly determine a name under which the

Products will be so1d in the Market Area. At Dragon's option, the name

"Transworld Pharma Corp." and any related trademarks will be included in, or

linked and used with, the name selected. TPh / Toray and Dragon will jointly own

the brand name developed.

Market Area Packaging

3.3 Dragon will work with TPh / Toray to develop distinctive packaging

materials suitable to the Market Area. All packaging will be subject to the

approval of TPh / Toray and will include, at the option of TPh / Toray, such

trademark or logos of TPh / Toray or its Affiliates as determined by TPh /

Toray. Dragon will be responsible for the costs of all packaging.

PART 4

PRICING, ORDERS AND PAYMENT

Price

4.1 TPh / Toray will receive from Dragon royalties from net sales of

product at rates set out in Schedule A, such rates to be in effect until

December 31 of each year.

4.2 Notwithstanding any change in the royalty rates set out in Schedule A,

no price change will effect the price of any Products for which a Purchase Order

has been received and accepted by Dragon.

4.3 Dragon's price to TPh / Toray for the finished product manufactured by

Dragon is set our in Schedule A.

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Resale Prices

4.4 Subject to all applicable laws and the approval of TPh / Toray, which

will not be unreasonably withheld, Dragon will determine the prices at which the

Products will be sold in the Market Area. In reviewing the resale price for the

Products, TPh / Toray and Dragon will take into account considerations of

consumer affordability and maintaining appropriate price advantages over

competitors.

Delivery Times

4.5 Dragon will promptly fill all purchase Orders received from TPh /

Toray in accordance with the terms of each Purchase Order and will ensure,

unless a longer delivery time is specified in a Purchase Order, a 60-day

delivery time for each such Purchase Order. If Dragon is able to deliver the

Products in a shorter period of time than specified in the Purchase Order, it

will notify TPh / Toray of such earlier delivery date.

4.6 Notwithstanding ss.4.7, if Dragon for any reason can not meet the

delivery times in a Purchase Order, it will notify TPh / Toray of the expected

delivery date when it confirms the Purchase Order under ss.4.6. Upon receipt of

Dragon's notice of the expected delivery date, TPh / Toray may, on notice

delivered to Dragon within five business days of Dragon's receipt of TPh /

Toray's confirmation of the Purchase Order, withdraw the Purchase Order. If the

Purchase Order is not withdrawn, the delivery times in ss.4.7 will be deemed to

be amended to the time set out in Dragon's confirmation of the Purchase Order.

Payment

4.7 TPh / Toray will make full payment to Dragon for Products shipped to

it on a date after the date of shipment agreed on a case by case basis provided

that before the expiry of the payment period, Dragon has received from TPh /

Toray the following documents:

(a) Dragon's detailed invoice;

(b) customs' invoice;

(c) air waybill;

(d) packing list; and

(e) pharmaceutical certificate of analysis, quality assurance and

quality control documents and batch certificates.

Letter of Credit

4.8 TPh / Toray will, at the request of Dragon, at any time during the

term of this Agreement, provide a standby letter of credit to Dragon, which

letter of credit may be drawn by Dragon upon default by TPh / Toray of payment

in collection with any Products as provided in ss.4.7. Notwithstanding any other

provision of this Agreement, if it has requested a letter of credit Dragon will

not be obligated to manufacture or deliver any Product until it has received the

letter of credit.

4.9 The value of the standby letter of credit need not exceed the value of

the Purchase Order for which Dragon has requested the letter of credit.

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Audit Right

4.10 Dragon will keep clear and accurate books and records of all sales of

Products in the Market Area. Up to twice a year, at the request and expense of

TPh / Toray