The ChinaBio® Investor Forum–Guangzhou selected two “Most Promising” companies out of the 14 young companies seeking investment. MingSight Pharmaceuticals was chosen in the drug category, and Cyagen Biosciences was named in the research tool group (see story). The ChinaBio® event, which was held December 21, brought together more than 330 attendees, including over 50 international VCs and investors.

The Tianjin-Israel Biomedical Equity Investment Fund raised $100 million with a goal of sponsoring the transfer of Israeli biomedical projects to Tianjin (see story). The fund is co-managed by Tianjin Venture Capital Management Co., Ltd. and Israel Infinity Group. It will invest in biomedical ventures, which will also include medical equipment, health care and innovation in medical models.

Hutchison MediPharma, a division of Chi-Med (AIM: CHM), raised $7.7 million from Softbank China Venture Capital’s SBCVC Fund III (see story). The second investment in the current round of fund raising, SBCVC’s contribution follows a $12.5 million investment from Mitsui & Co. in November. SBCVC Fund III will receive convertible Preference Shares equivalent to 7.5% of Hutchison MediPharma.

Northeast Pharmaceutical Group (SHEX: 000597) will invest five billion RMB ($750 million) to build a production facility for phosphonomycin, a broad-spectrum antibiotic (see story). Northeast Pharma holds a 90% market share for phosphonomycin in China. It currently sells 400 million units of the drug each year, but will have capacity of 1 billion units with the new facility.

Government/Regulatory Events:

The National Development and Reform Commission (NDRC) is considering cutting drug prices by an average 40% on 658 types of medicines in 307 categories (see story). The reductions are detailed in a document that has been seen by pharma executives. Although the NDRC confirmed the document’s existence, it did not answer questions about whether the cuts will be put into effect or estimate a timetable for their implementation.

Taiwan and China are expected to sign a bilateral pharmaceutical agreement that will speed approval of Taiwanese drugs in China (see story). Under the new rules, China will accept clinical trials conducted in Taiwan for SFDA approval of a drug in China. The agreement could cut five years from the China approval process for Taiwan pharmas.

Product Development:

Xiangxue Pharmaceutical (SHEZ: 300147), which completed its IPO on Shenzhen’s GEM Exchange on December 15, expects to have a TCM treatment for Alzheimer’s disease on the market within three years (see story). Wang Yonghui, Manager of Xiangxue, also disclosed plans to extend the indication of its major product, Anti-Virus Oral Liquid, to include conjunctivitis and HFMD (hand, foot and mouth) diseases.
http://www.chinabiotoday.com/articles/20101223

Marketing/Distribution:

Gedeon Richter, the largest pharma in Hungary, will set up a 50/50 joint venture with its China marketing partner, Rxmidas Pharmaceuticals (see story). The JV will market Richter’s gynecological products in China. Richter will invest 18 million RMB ($2.7 million) as starting capital.

Disclosure: none.