The interaction in biopharma activity between China and the West was a major theme last week, as evidenced in part by Pfizer (NYSE: PFE), which said it expects to increase its investment in Asia, according to Martin Mackay, Pfizer’s president of global research and development. A large part of the company’s interest is the expected growth of China’s pharmaceutical market, which is expected to hit $200 billion by 2017. But equally important is the success of the two-year-old Shanghai R&D center, now employing 200 people, which Mackay called “exceptionally important” to Pfizer. Mackay said that Pfizer will up its investment throughout Asia, including China, India, Japan, and South Korea. Although Pfizer was not specific about its plans, the company has previously committed to making $300 million in investments in South Korea. Pfizer claims that its revenues were first among Asia pharmaceutical companies for the 12 months ending June 2007, but in 2006, its revenues ranked only 37th overall in the China market and fifth of all foreign biopharmas in China.

Going in the opposite direction, Xiangxue Pharmaceuticals of Guangzhou announced plans to open an R&D center in Cambridge, UK, that will also include input from Cambridge University and Tsinghua University. It is the first overseas R&D initiative for Xiangxue. The goal of the new center will be to analyze the benefits of TCM, bridging the gap with standard Western medicine.

In other cross border news, Immtech Pharmaceuticals (AMEX: IMM) hired Dr. Jubo Liu to direct its China clinical work, underscoring the importance of international clinical trials (see story). The company is conducting a Phase III trial of pafuramidine in HIV patients as a treatment for pneumocystis pneumonia (PCP), a fungal infection that afflicts patients with compromised immune systems. The trial is proceeding in the US, five South American countries, and China. Immtech is seeking approval of pafuramidine in both the US and China, with Fast-Track status in China and an SPA from the FDA governing the trials in both places.

Sanofi-Aventis (NYSE: SNY) will build a flu vaccine facility in Shenzhen at a cost of 70 million euros ($103 million) (see story). The new manufacturing plant, which is expected to be operational in 2012, will commence construction next year. Sanofi will produce the vaccine for the China market. Even though Sanofi’s vaccine will not be the most economical vaccine available in China, the company is convinced its name and adherence to international standards will overcome the price differential.

China Medical (NSDQ: CMED) acquired a company that will extend its line of in-vitro diagnostic offerings (see story). Like China Medical, Beijing Bio-Ekon Biotechnology Co. is involved in the ECLIA market, with both a semi-automatic ECLIA analyzer and variety of reagents, some of which have large potential, according to China Medical. China Medical will pay $28.8 million for Beijing Bio-Ekon. 

In domestic Chinese biopharma news, Simcere Pharma (NYSE: SCR), a maker of traditional Chinese medications, acquired Nanjing Tung Chit Pharma for $4.4 million (see story). At the heart of the deal is a cancer drug, Jiebaisu, a platinum-based nedaplatin injection. Simcere recently bought another cancer drug Endu, an anti-angiogenesis endostatin cancer drug that is administered along with a platinum cancer drug.

Guangdong Jiaying Pharmaceutical will IPO on the Shenzhen stock exchange, issuing 20.5 million shares that will constitute 25% of the outstanding shares post-IPO (see story). Jiaying expects to raise a total of 175 million RMB ($23.6 million) in the offering, implying a price of 8.5 RMB per share. Jiaying will use the money to expand its production facility and build a distribution center.

The large state-owned enterprise Yunnan Baiyao Group Co., Ltd. (SZSE: 000538) will acquire two much smaller pharmaceutical companies for a total of 50 million RMB ($6.8 million) (see story). Yunnan Baiyao appears to be interested in the two companies because of their ability to add production capacity for the company’s main product, also known as Yunnan Baiyao, a traditional Chinese medicine that helps stop bleeding. Yunnan Baiyao has a market cap of $2 billion. 

China Aoxing Pharmaceutical Company (OTCBB: CAXG) was granted “designated manufacturer status” for Tilidine, an opioid cancer pain drug, by the SFDA (see story). Among other benefits, “designated” status means China Aoxing will have five years of manufacturing exclusivity for the drug. China Aoxing is steadily following its plan of introducing Western-style pain drugs to China.



Disclosure: none.