Deals and Transactions
OrbiMed Advisors filed to raise $300 million for a new Asia-focused fund, the second of OrbiMed's Asia-specific funds. OrbiMed, a private equity firm that specializes in life science investments, invests in all life science sectors: drugs, devices, diagnostics and healthcare delivery. The company includes at least five China companies in its portfolio. It has offices in Shanghai and Mumbai.
Teva Pharma (NYSE: TEVA), the global generic drugmaker headquartered in Israel, is aiming at the drug markets of China and Brazil as the next targets for its global expansion (see story). To gain a foothold is these emerging markets, the company will forge strategic alliances, said Jeremy Levin, the company's CEO, at an investment conference. In the past, Teva made blockbuster acquisitions, but it now emphasizes smaller, more cooperative ventures.
Qilu Pharmaceutical will spend 6 billion RMB ($1 billion) to construct a biopharmaceutical park in its home town of Jinan, located in eastern China's Shangdong Province. The 8 million square foot park will include an R&D facility, a manufacturing plant for cancer treatments and a monoclonal antibody drug facility. The company said it will seek to establish cooperative projects with global top 20 pharmas to take advantage of the expanded capacity provided by the park.
Mindray Medical (NYSE: MR), the Shenzhen medical device maker, has formed a US partnership with MedTest, a US company that offers clinical diagnostic tests (see story). The partnership will market Mindray's BS-200 clinical analyzer together with diagnostic tests developed by a MedTest subsidiary. MedTest DX's sales force will market the BS-200 analyzer and tests to the chemistry and drugs-of-abuse sectors in the US.
WuXi PharmaTech's (NYSE: WX) Q2 results showed the company is continuing its long-standing pattern of steady growth (see story). Revenues were up 9.2% to $142 million and net income climbed 44% to $29.6 million. The company's non-GAAP earnings were $.46 per share, which was seven cents ahead of consensus estimates. With half of 2013 now known, WuXi raised guidance for full-year 2013.
Trials and Approvals
Cosmederm Bioscience of San Diego, Hong Kong and Shenzhen, received CFDA approval for TriCalm® Anti-Itch Hydrogel, an OTC topical treatment for itching, burning or stinging skin conditions. Cosmederm's TriCalm products are steroid-free skincare products that have been tested to provide relief from itching and burning without causing side effects. In April 2013, the company's Tricalm Eczema Creme was approved for marketing by the CFDA, its first China approval.
Government and Regulatory
China's State Administration for Industry and Commerce (SAIC) began a new three-month investigation to root out bribery in China's pharmaceutical and medical services industries (see story). The announcement came as a former drug salesperson charged that Novartis (NYSE: NVS) paid doctors to prescribe its products.