Deals and Financings
Mindray Medical (NYSE: MR) closed its purchase of Zonare Medical Systems, a US high-end ultrasound maker (see story). The deal was originally announced in June. The final price was $101.7 million, down from the original $105 million. It was adjusted based on the company's working capital at the closing date.
Chongqing Lummy Pharma (SHE: 300006) revealed it will bid for the 40% stake in Sichuan Hygien Pharma held by Chongqing Venture Capital. The bid will be at least 44 million RMB ($7 million). If it is successful, Chongqing Lummy will own all of Sichuan Hygien. In 2010, it paid 54 million RMB ($9 million) for its initial 60% stake in Sichuan Hygien.
Kunming Pharmaceutical (SHA: 600422), a TCM drug maker, will establish a joint venture in Uzbekistan with $3.5 million of initial capital. The other party to the JV is an Uzbek state-owned entity called the Uzfarmprom State Joint Stock Company. Kunming expects that building the plant will require a 250 million RMB ($41 million) investment. According to Kunming, domestic demand for its products is satisfied, forcing it to seek overseas opportunities.
Marinomed Biotechnologie, a Vienna-based biotech company, has sold the China rights for its product portfolio to an unnamed European pharma. The buyer, which Marinomed called "a major international pharmaceuticals company," will have exclusive China rights to five antiviral products: lozenges and a throat spray that treat viral throat infections, plus three nasal sprays, one for colds, another for flu and a third for colds in children.
Tianyin Pharma (NYSE: TPI) is looking for deals to market its Azithromycin API in the Indian subcontinent (Bangladesh, India, and Pakistan) (see story). When Tianyin started construction of the facility, the China market for antibiotics was larger than it is now. China's crackdown on antibiotic use lowered domestic prospects for sales just at Tianyin was spending to increase production. In its Q3 (ended March 30, 2013), Tianyin announced antibiotics produced $1.1 million in revenue.
Trials and Approvals
Sihuan Pharma (HKEX: 0460) received CFDA permission to begin clinical trials of a Category 1.1 (a novel treatment never approved anywhere in the world) for ulcers. Sihuan describes Anaprazole Sodium as a latest-generation proton pump inhibitor. It is the fifth Category 1 drug that Sihuan has put into clinical trials. Sihuan is the largest maker of cardio-cerebral vascular drugs for the China market.
Government and Regulatory
According to China's Ministry of Public Security, GlaxoSmithKline (NYSE: GSK) spent $489 million on bribes to China doctors, hospital managers and public officials from 2007 to the present (see story). That is the amount of money GSK paid to travel agencies during the period. It isn't clear whether the total includes some legitimate travel expenses. The travel agencies were so grateful they supplied "sexual favors" to GSK officials to keep the company's business.