Innovative Pharmaceutical Biotech (HKG:0399) entered a memorandum of understanding to invest in US-based Niraxx in exchange for a majority stake, a Tuesday Hong Kong bourse filing said.

Niraxx developed SyncWell, an artificial intelligence-powered virtual health platform, and DeepSynaps, a neurotechnology service platform.

Niraxx is also in the business of integrating photobiomodulation technology into activewear and developing a computer chip that integrates advanced technologies.

The oral insulin products seller said the potential investment is part of the group's business diversification efforts.

The parties have yet to enter a formal agreement, as stated in the disclosure.