Deals and Financings
WuXi PharmaTech (NYSE:WX) strengthened its laboratory testing capabilities by acquiring XenoBiotic Laboratories, a US-China pre-clinical CRO (see story). XBL has specific expertise in radio-labeled compound studies. XBL provides bioanalytical, drug metabolism, and pharmacokinetic services from its New Jersey and Nanjing labs. As part of the acquisition, Dr. Jinn Wu, President and CEO of XBL, will become Vice President and Chief Scientific Officer of WuXi's Laboratory Testing Division.
Fosun International (OTCPK:FOSUF) raised its offer to acquire Espirito Santo Saude, a Portuguese chain of hospitals clinics and nursing homes, to $584 million, making Fosun the current high bidder (see story). The takeover battle for ESS remains open, and ESS is trading slightly above Fosun's 4.82 euros per share offer. Today, in other news, Fosun and its partners announced they have closed the $434 million take-private acquisition of Chindex, a chain of private China hospitals and clinics.
Verisante Technology (TSX: VRS; OTCQX: OTC:VRSEF) of Canada reworked the terms of a LOI with an unnamed partner for global/China rights to its cancer detection technology (see story). Under the new agreement, the rights to the technology will be placed in an LLC, which will be listed as soon as possible on Shenzhen's OTC stock exchange. Verisante will own 30% of the LLC. The LLC will own worldwide rights to commercialize Verisante's Core Raman technology and ClearVu endoscopic system to detect lung cancer and China rights to other Core products. Also, the partner will make a $2.15 million investment in Verisante.
Sanofi (NYSE:SNY) opened an R&D Hub in Shanghai that is tasked with managing the company's more than 50 research partnerships in China and 11 other Asia Pacific countries (see story). The site will eventually house 1,400 employees. In addition, Sanofi announced a new diabetes research program with The GCPR Institute, and the company mentioned its respiratory disease partnership with Shanghai's ZAI Lab, which was announced in August.
Novotech, a pan-Asia clinical-stage CRO headquartered in Australia, opened a Shanghai office, a wholly owned entity with a local staff. Previously, Novotech operated in China through partners. The company was responding, it said, to the requests of its international pharma clients for China trials. Novotech pointed out that China is the largest site for clinical trials in Asia and the fifth largest in the world.
Trials and Approvals
BSD Medical Corp. (BSDM), a US company that makes hypothermia devices to treat cancer and other diseases, received updated CFDA approval for its BSD-2000 Hyperthermia System. BSD's machine uses radiofrequency to deliver heat that treats solid tumors (see story). Dalian Orientech Co., which commercializes medical devices in China, has signed a second four-year contract to market the BSD-2000 in China for BSD.
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