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The Week in Review: ChinaBio® Investor Forum–Jinan Selects Two “Most Promising” Companies

publication date: Jul 23, 2011
 | 
author/source: Richard Daverman, PhD
The ChinaBio® Investor Forum–Jinan chose two early stage life science companies as the “Most Promising” of the 17 presenting companies at the recently held conference (see story). Cardeus Pharmaceuticals was selected in the pharmaceutical category, and Beijing UniMedex was named in the devices and services group. The ChinaBio event brought together more than 180 attendees, including international VCs and investors from China, the US, and Japan. A panel of VCs and pharma executives selected the two companies for the "Most Promising" honor based on their especially compelling business plans.

Deals and Transactions

Merck (NYSE: MRK), known as MSD outside the US and Canada, will form a China JV with Simcere Pharma (NYSE: SCR) (see story). The JV will concentrate on branded pharma products for cardiovascular and metabolic diseases. Because both companies will contribute significant products to the new entity, the JV could have far-reaching consequences.

Shijiazhuang Yiling Pharmaceutical now expects to raise as much as $348 million in its ChiNext IPO (see story). The latest offering price was increased by about one-third to 34.56 yuan, reflecting investor demand. Yiling, which plans to place 65 million shares, is primarily known as a TCM and nutraceutical company, though it has biological medicines in its portfolio and offers CRO services as well.

Two China biopharmas have completed IPOs on Shenzhen’s ChiNext Exchange (see story). Guangdong Biolight Meditech (SHE: 300246), a medical device maker whose products include patient monitors and central monitoring systems, raised $40.6 million. Zhejiang D.A. Diagnostics (SHE: 300245), a third-party diagnostic services and diagnostic products distributor, raised $46.6 million. Both offerings, though modest in size, rose sharply when they began trading.

Sihuan Pharmaceutical Holdings (HK: 0640) will sell a 50% stake in a drug distribution subsidiary to Shandong Buchang Pharmaceutical at a price of $98.6 million (see story). Both companies have expertise in the cardio-cerebral vascular sector. It was a good deal for Sihuan, which purchased the assets last month for $120 million.

Chongqing Zhifei Biological Products (SHE: 300122) will not pursue a plan to acquire Bilthoven Biologicals, a Dutch vaccine maker, explaining that the transaction was too risky (see story). According to Zhifei, Bilthovern’s plans and operational methods were not what it expected. In May of this year, Zhifei announced a $93 million takeover of Bilthoven’s operations, which would give it a foothold in Europe.

Ascletis, a US-China drug development startup, announced new support from the two cities in which it will do business – Hangzhou, China, and Research Triangle Park, US (see story). One feature of the new agreements is clear: Ascletis will house a US-based R&D center in the Research Triangle’s Hamner Institutes. Beyond that, there aren’t many specifics in the agreements, beyond access to the networks of The Hamner and Hangzhou Hi-Tech Industry Development Zone.

Government and Regulatory


China’s National Development and Reform Commission (NDRC), which has responsibility for controlling prices in China, decided on a dramatic course of action to lower the high cost of TCM raw materials. The NDRC told anyone who has a supply of codonopsis pilosula, an important TCM herb more popularly known as radix, that they must sell their supplies – and then set a low price as the ceiling at which the transactions must take place (see story). To show that it means business, the NDRC ordered the worst offenders to sell their stockpiles within one week.

Trials and Approvals


Beijing BeiLu Pharmaceutical (SHE: 300016) decided to end its agomelatine development project (see story). According to the company, the SFDA refused to authorize a clinical trial of agomelatine, an antidepressant drug, saying the IND filing did not prove the drug was effective. BeiLu explained that a new application for a clinical trial would take three years, which it feels would cause the company to miss the most opportune launch window for the product.

Disclosure: ChinaBio® LLC has a business relationship with Merck.

 

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