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Deals and Transactions

Shanghai Fosun Pharma's (SHA: 600196) on-again/off-again Hong Kong IPO is apparently now scheduled to take place early this year. According to an unnamed insider, the company has filed its listing application with the Hong Kong exchange. Fosun hopes to raise between $600 million and $800 million by floating up to a 20% stake in the company.

Shanghai Pharmaceuticals (SHA: 601607; HK: 02607) will buy Changzhou Kony Pharm Co., a company that makes APIs for antivirals and cardiovascular drugs. Shanghai Pharma positioned the acquisition as mutually advantageous. It is also a way for Shanghai Pharma to put some of the $2 billion garnered from its Hong Kong IPO to work. Although the price was not disclosed, Kony Pharma was estimated to be worth about 300 million RMB ($47.6 million). In January, Shanghai Pharma purchased a 51% share in Jinhe Bio-Technology, a company that specializes in APIs for cancer drugs.

Shanghai Biochip, also known as ShanghaiBio Corp., signed an MOU with GeneNews Limited, a Canadian molecular diagnostics company. The agreement calls for GeneNews and SBC to set up a Sentinel Center for Personalized Medicine in China, based on GeneNews’ Sentinel technology. The Center will seek to co-develop and commercialize molecular diagnostic products. Also, SBC will gain non-exclusive rights to market and sell GeneNews' ColonSentry™ test in China.

Changchun BCHT Biotechnology obtained an exclusive license for a live attenuated influenza (LIAV) vaccine technology from BioDiem, an Australian vaccine company. The license gives BCHT exclusive China rights to the technology for an egg-based production method in pandemic and seasonal influenza vaccines. Although the license is limited to LAIV for private market vaccines, BCHT holds a second license to LAIV for China’s public market in China via a sub-license from the World Health Organization.

Company News

Shanghai Pharmaceuticals (SHA: 601607; HKEX: 02607) announced a plan to set up a Beijing headquarters for North China. The company will establish a new entity, which will be called Shanghai Pharma Northern Investment Co., Ltd. and capitalized with $80 million. According to the company, Shanghai Pharma Northern will coordinate the company’s various subsidiaries in the region and take responsibility for further investment in North China.

Takeda Pharma (TO: 4502) has established a new China division, Takeda Shanghai Development Center, which will be put in charge of the company’s clinical development projects in Asia. The TSDC will concentrate on general medicine in China and oncology for all of Asia. It will conduct clinical trials – increasing the emphasis on China – and it will also be given the task of deepening relationships with physicians and drug regulators.

Nanjing Pharmaceutical (SHA: 600713), a company that makes and distributes pharmaceuticals, announced it will report a loss for 2011. The loss sent Nanjing Pharma’s stock price lower, sparking speculation that one of China’s major drug distribution companies will make a bid for the beleaguered company. Nanjing is a potentially valuable asset because it is the largest drug distributor in China’s eastern provinces of Jiangsu, Anhui and Fujian.

Disclosure: none.

Source: China Biotech Week in Review: Fosun Pharma Plans Large Hong Kong IPO