The annual J.P. Morgan Healthcare Conference is now just a little over one week away. The event, held January 9-12, 2012 in San Francisco, is the year's best chance for healthcare investors to get a read on the state of the industry. We have drawn together the major China-specific events at the conference – and in the conferences that take place around the J.P Morgan event – as a handy guide, complete with updates as we become aware of them (see story).
Deals and Transactions
Harbin Pharmaceutical (SHA: 600664) was given regulatory approval to execute a corporate restructuring with its parent, Harbin Pharmaceutical Group (see story). Harbin Pharma will issue 303 million shares with a stated value of 5.5 billion RMB ($870 million) to its parent in exchange for a bioengineering company and a 45% share in Sanjing Pharmaceutical (SHA: 600289). After the transaction, Harbin Pharma will be the major pharmaceutical enterprise of Harbin Pharmaceutical Group.
China Health Resource (OTCBB: CHRI.PK), a TCM company, has retained a legal counsel (Loeb & Loeb LLP) to facilitate an acquisition strategy, which China Health announced last month (see story). China Health, all of whose operations are currently in the PRC, wants to increase its revenues and profits by selling its TCM products to Europe and the US. It is, apparently, looking to buy marketing/distribution companies that will advance its “Going Global” initiative. However, the company does not have much money to finance any deals.
Government and Regulatory
China announced new rules that will encourage foreigners to invest in China biotechnology companies (see story). The new regulations are contained in the Foreign Direct Investment Guidelines, issued by the NDRC. Because biotechnology is a favored industry, foreign direct investments in the sector will be subject to a lower level of administrative scrutiny and may also qualify for preferential tax treatment and other benefits.
Yunnan Baiyao Group, (SHE: 000538) a maker of TCM products, officially began operating from its new 2.5 billion RMB ($396 million) production facility in Kunming city, Yunnan Province in southwest China (see story). Phase I of the new site will be able to formulate 12 billion RMB ($1.9 billion) of products annually. Construction was begun four years ago on the site, which has a land area of 7.9 million square feet.