Charles River Laboratories (NYSE: CRL) and WuXi PharmaTech (NYSE: WX) (药明康德) expect their upcoming merger to produce $75 million to $100 million in additional revenues by 2013, largely through cross-selling, and $20 million in cost savings (see story). The projections were contained in a new investor presentation. The shareholders of both companies will vote on the transaction on August 5.

WuXi PharmaTech (NYSE: WX) reported upbeat Q2 financial results, saying that demand continues strong for its services, which drove revenues and earnings higher (see story). Because the company feels increasingly optimistic about its financial prospects, it also issued higher guidance for the full year. WuXi saw its growth rate drop to just 7% in 2009, despite large capital expenditures to offer new lines of business, and it took a $50 million writedown of its AppTech acquisition in 2008. Now, it expects solid increases in the future.

A China-Spanish JV announced a 500 million RMB ($73.8 million) investment to develop four anti-cancer monoclonal antibody drugs (see story). At present, the JV is 70% owned by Shanghai Fosun Pharma (SHEX: 600196), while Grupo Chemo of Spain holds the remaining 30% stake. With the new investment, Grupo Chemo will increase its ownership to 40%.

China PharmaHub (OTCBB: WRLC) signed a five-year technology transfer agreement with Sichuan Province under which it will seek foreign biotech and medical device technology that can be acquired by Sichuan companies (see story). China PharmaHub said it will present over 30 projects to Sichuan companies and sponsor conferences to facilitate execution of the projects.

Merck Sharp & Dohme, the international arm of the US big pharma Merck (NYSE: MRK), started construction of a 1.1 billion RMB ($162 million) pharmaceutical packaging plant in the Hangzhou Economic and Technological Area (see story). Underscoring the global significance of the move, Merck last week announced the closing of 16 facilities in other parts of the world. Eight of those soon-to-be-closed sites are manufacturing plants.

IBM (NYSE: IBM) collaborated with Peking University People's Hospital to build an evidence-based patient centric care (ePC3) system (see story). The system is designed to facilitate cooperation and resource sharing among the various providers of medical services. It combines patients’ electronic record with a best practices database to improve patient care. IBM plans to invest $100 million in a global initiative to develop and deploy its ePC3 system.

Dehaier Medical Systems (NSDQ: DHRM) acquired a line of emergency ventilators from Beijing Qiumanshi Technology Co., Ltd., which it will manufacture and sell in China (see story). The company said the new products will complement its existing ventilator offerings, which are aimed at the hospital and home markets. The agreement includes production technology and all related IP.

NeoStem (NYSE Amex: NBS) received a $700,000 contract from the U.S. Army Medical Research grant to study the use of Primcel, a topically applied stem cell product designed to aid wound healing (see story). Primcel uses adult stem cells derived from a person’s own bone marrow (mesenchymal stem cells) with the goal of speeding recovery and avoiding amputation in non-healing, chronic wounds.

Shandong Lukang Pharma (SHEX: 600789) said it expects a first half profit of 80 million RMB ($11.8 million), a 700% improvement over 2009 (see story). The company attributed its much higher performance to increased sales, an improved corporate structure and lower costs achieved by savings in energy.


Disclosure: none.