Did you know?

ChinaBio® Group is a consulting and advisory firm helping life science companies and investors achieve success in China. ChinaBio works with U.S., European and APAC companies and investors seeking partnerships, acquisitions, novel technologies and funding in China.  

Learn more >>

Free Newsletter

Have the latest stories on China's life science industry delivered to your inbox daily or weekly - free!

  Email address:
   

The Week in Review: Boston Scientific Earmarks $150 Million for China Effort

publication date: Jul 30, 2011
 | 
author/source: Richard Daverman, PhD
Deals and Transactions

Boston Scientific (NYSE: BSX), the major US cardiovascular medical device maker, announced plans to spend $150 million over the next five years to increase its China presence (see story). Specifically, the company will build a manufacturing facility in the PRC to serve local markets, and it will also establish a training center, complete with virtual learning systems, to teach the latest procedures. At the end of the five years, Boston Scientific expects its China operations to be producing $500 million in revenue annually.

Shares of Shijiazhuang Yiling Pharma (SHE: 002603) climbed 27% following the company’s IPO on the ChiNext exchange (see story). As we reported last week, the company, which makes cardiovascular and cerebrovascular medicines, bumped the price of its IPO higher by one-third due to higher-than-expected demand, raising the value of the transaction to 2.25 billion RMB ($348 million). The positive response shows investor interest in China pharma companies.

Shanxi C&Y Pharma has received regulatory approval to IPO on Shenzhen’s ChiNext exchange (see story). Shanxi C&Y focuses on anti-infectives including new forms of antibiotics as well as other pharma products. The company, which will offer 33.8 million shares in the offering, plans to announce its IPO price on August 5.

Meheco Corporation (SHA: 600056) will gain a controlling stake in Xinjiang Tianshan Pharma via a two-step process (see story). First, Meheco will spend 2.2 million RMB ($342,000) to buy a 5% stake in Tianshan, and then it will invest 42 million RMB ($6.5 million) to bring its ownership up to 51%. Established in 1986, Tianshan Pharma produces herbal extracts as well as tablet and granule formulations of TCM products.

Aeras, a US-South Africa non-profit that develops vaccines and other preventative measures against TB, has signed a MOU with the China National Biotech Group (CNBG) to develop inexpensive, effective TB vaccines (see story). The vaccines are initially intended for China, which reports 1 million new cases of TB per year. Later, the vaccines could be exported to other parts of the world.

Hutchison China MediTech (AIM: HCM) will expand its business plan by adding third-party OTC drug distribution to its activities. The company announced a JV that will distribute its own TCM drugs and offer similar services to other companies (see story). Chi-Med, as the company is popularly known, expects the new venture will add “substantially” to its profits. Previously, Chi-Med was allowed to distribute its own products, but not those of other companies.

Company News

Shenzhen Hepalink Pharma (SHE: 002399), a company that makes APIs for the blood thinner heparin, said 2011 first-half results were hurt by higher costs and lower revenues (see story). Hepalink reported first-half net income dropped 40% to $56.2 million on revenues that fell 13% to $249 million. Earnings per share were 44% lower at .45 RMB. Hepalink derives the majority of its revenues from ex-China sales of its heparin products.

Innovation in China

Based on work done at Shenzhen’s BGI (formerly the Beijing Genetics Institute), researchers have published data showing that structural variations in an Asian and African genome have more effect on individual genetic diversity than SNPs (see story). The discovery came from the study of 106 individuals whose genomes were studied as part of the 1,000 Genomes Project. BGI is the world’s largest genetics research institute.

Disclosure: none.

 

Share this with colleagues:

 

ChinaBio® News

Greg Scott BIO-Europe Interview
Greg Scott Interviewed at BIO-Europe Spring

How to bring your China assets to China in 8 minutes


Greg Scott Mendelspod Interview
"Mr. Bio in China."
Mendelspod Interview

Multinational pharma held to a higher standard in China

Partner Event
November 2-3, 2023 | Shanghai
November 7-8, 2023 | Digital