China Biotech in Review: Orthopedic Device Maker Plans NYSE Debut

 |  Includes: CRL, WX
by: ChinaBio Today

China Kanghui Holdings, an orthopedic implant maker, reported Q2 revenues of 39 million RMB ($8.6 million), an increase of 29% (see story). Net income grew by 36% to 28 million RMB ($4.1 million), pegging the company’s net margins at an impressive 48%. The results are preliminary. Late last month, Kanghui signaled its intention to stage an IPO on the New York Stock Exchange.

Sangon Biotech, a Shanghai company that offers life science research services, has received $10 million in funding from Qiming Ventures (see story). Sangon is a wholly owned subsidiary of Bio Basic Inc. of Toronto, a privately held enterprise that also offers life science research services. Sangon said it would use the funds to increase its R&D, manufacturing and sales.

The Scientific American, impressed by the vibrancy of China’s biopharma innovation, devoted a special section to the sector (see story). The magazine was especially impressed by the improvement in China’s IP protection, which has historically been a sore spot for foreigners. SciAm’s China section accompanied the second annual appearance of the magazine’s Worldview Scorecard, an index of factors that rank countries on their potential for biopharma success.

China’s State Food & Drug Administration expects to have a national digital monitoring network in place by the end of the year that will fully monitor all 307 of the drugs on the PRC Essential Drug List (see story). By monitoring the entire process of the manufacture, transportation, storage and sale of drugs, the network will enable real-time inquiries into inventories and destinations. Each individual package of medication will have its own code, enabling the SFDA to track and, if necessary, recall drugs.

In the aftermath of the breakup of the merger between Charles River Labs (NYSE: CRL) and WuXi PharmaTech (NYSE: WX), the two companies each reported final reports for their respective 2010 second quarter financial performances (see story). The results? The rejected company, WuXi PharmaTech, increased its guidance for 2010 slightly. Charles River, after deciding WuXi wasn’t worth the money, announced its own revenues declined and trimmed its 2010 outlook.

Disclosure: none.