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China Pharma and Biotech Market Update - Oct 13, 2010

 

Buy Lotensin, Sell Hyzaar... The Chongqing Drug Exchange, a third party platform set to manage pharmaceutical trading, was recently inaugurated by the Chongqing municipal government. The exchange, oddly launched just before the Chinese national holiday week, is now the required forum for over 400 public hospitals to purchase non-EDL drugs. The platform is one of many initiatives across China to attempt to add transparency into pharmaceutical wholesaling. See volume 36 of the China Pharmaceutical & Biotechnology Review for more on plans for centralized procurement in China. GBI SOURCE users will find the article in the Special Reports section.)

Rumors about tumors and answers for cancer - Two cancer therapeutics being developed in China saw licensing activity last week: HUYA Bioscience and Quintiles entered into an agreement to co-develop HBI-8000, a histone deacetylase inhibitor-type anti-cancer drug, from Chipscreen Biotech; and Harbin-based Gloria Pharmaceutical announced plans to purchase the IP rights of SX004, a multi-target tyrosine kinase inhibitor, from Shanghai Yishan Co., Ltd for RMB 65 million. HBI-8000 has entered Phase I trials in the US; SX004, will be submitted for IND/clinical trial approval to the SFDA and is still under patent review. (Reminder - relevant patents, trademarks, and legal actions may be found in the "Legal (Patents)" area of the detail page for each product in the Product Section of GBI SOURCE.

See this week's SOURCE Snapshot for a look at tyrosine kinase inhibitors being developed by domestic Chinese pharmas.

source sanpshot

 

Public to private and back again - Hangzhou has completed an RMB 300 million mass acquisition of 28 privatized hospitals with the goal of converting them into community healthcare centers. While the healthcare reforms suggest that there might be an increased role for new private healthcare facilities, moving forward, it seems that older, poorly-run facilities from the privatization wave at the beginning of the decade may provide fertile ground for government-mandated growth of grassroots healthcare.


"Growth industry" runs afoul of the law- China-based GeneScience Pharmaceutical has pled guilty to felony charges of illegally distributing human growth hormone (HGH) in the US. The company will pay over USD 10million in penalties and its CEO will face five years' probation. In other news, China BCT Pharmacy Group announced plans to acquire 33 retail pharmacies in Guangxi Province; UK-based Carbosynth Ltd. signed an agreement with Healtang Biotech to set up a JV in Jinan; the MOH released new guidelines for treating NDM-1 "superbug" infections and suspected tick-borne illnesses; and Tongjitang sold off assets in Guizhou Province totaling RMB 260million including Guizhou Tongjitang Pharmaceutical Distribution, Guizhou Tongjitang Pharmacy Chain Stores, and Guizhou Liquor Company Ltd. For more, visit us at www.gbipharma.com, where we own no liquor companies, but do provide you with an intoxicating mix of essential information on China's pharma and healthcare industries.



Disclosure: no positions