China Biotech Week in Review: Cross-Border Deals

Even though China’s week-long National Day celebration did its best to keep a lid on any China biopharma news last week, some stories managed to slip out, including three significant cross-border deals.

In the biggest-dollar transaction, GlaxoSmithKline (GSK) announced the formation of a new JV with Jiangsu Walvax Biotech Company to develop and manufacture pediatric vaccines for the China market (see story). Initially, the JV will be funded with $65.6 million of capital, of which $32 million (65%) will come from GSK. The JV will begin operations by producing Priorix™, GSK’s pediatric vaccine for measles, mumps and rubella (MMR). The JV will build a new manufacturing facility, and it plans to extend its operations to include other pediatric vaccines over time.

Inviragen and SingVax have merged their vaccine development operations (see story). Both companies are working on vaccines for infectious diseases that plague emerging countries. Inviragen has offices in Madison, WI and Fort Collins, CO, while SingVax is located in Singapore. Besides establishing a cross-border company, the newly merged entity also raised $15 million in a Series A round from an international syndicate of investors.

NeoStem, Inc. (NBS) reported the SEC accepted its registration proposal to acquire China Biopharmaceutical Holdings (CHBP.OB) in an all-stock transaction (see story). China Biopharma’s only asset is a 51% interest in Suzhou Erye Pharmaceutical Co., a generic drug manufacturer that in 2008 produced $50 million in revenues and net income of $8 million. The acquisition gives NeoStem a much-needed revenue stream, and it also establishes a China foothold for NeoStem. A large part of NeoStem’s future operations will be in China.

In other news, two China CROs announced their laboratory operations have been accredited by the Association for Assessment and Accreditation of Laboratory Animal Care ((AAALAC)). PharmaLegacy, a Shanghai CRO dedicated to preclinical pharmacology, received full AAALAC accreditation (see story). The company has special expertise in three major disease areas, bone/orthopedic research, inflammation/immune diseases, and oncology. PharmaLegacy has now completed its first year of operations, and it released data about its success so far.

Charles River Laboratories (CRL) reported that its year-old Shanghai CRO facility has received three accreditations from organizations protecting the care of laboratory animals: the AAALAC, the Canadian Council on Animal Care (CCAC) and the Shanghai Laboratory Animal Commission (SLAC) (see story). Charles River’s CRO is a joint venture between Charles River and Shanghai BioExplorer, with Charles River being the majority partner.

Also, there was news of two approvals last week. Sinobiopharma, Inc. (SNBP.OB) received a certificate for the use of Gabexate mesylate as a pharmaceutical raw material from the SFDA (see story). Gabexate mesylate is a serine proteinase inhibitor used therapeutically in the treatment of pancreatitis, disseminated intravascular coagulation (DIC), and as a regional anticoagulant for hemodialysis. We took advantage of the announcement to review Sinobiopharma's business plan.

In the medical device field, Ingen Technologies (IGNT.PK) received a China patent for its Oxyview® products (see story). Oxyview is an oxygen flow meter that measures the oxygen being delivered by a supplemental oxygen product. Ingen claims its product improves accuracy and ease of use over the standard meter, which is located on the oxygen tank. Ingen’s product is placed close to the patient, as part of the line that delivers oxygen.

Disclosure: none.

Comments

[gretel:]

China Stocks are great.-There is a Super Stock in America,CVM LIKE Dendreon which went from a few $ Stock to $27.- plus, CVM got a Big Negative Spin from Adam "Frankenstein",the Street and Cramer so his Hedges Buddies can buy the Stock on a Tip.CVM is the only Comp.who was and is working on a great Drug which can save LIFES in Hospitals when Swin Flue Drugs don't work. With the exeption of the "Blind Followers"
of Adam, Cramer and the Street, we "Normal People" know there is a great Chance CVM will go to $5.-and up and up. There Cancer Drug is a Bonus.Why is the FDA in a hurry in Virginia at CVM? Normal-Balanced People read and are not Followers .Cramer and Adam Frankenstein look like Gangsters in a Mafia Movie,are they Gangsters ?
-Sorry about my English.

Oct 12 12:32 AM