BioBay Investor Forum 2011 concluded a successful meeting, after selecting Chiva Pharmaceuticals and Suzhou Biologix Medical Technology as the two “Most Promising” of the presenting companies (see story). The event brought together more than 240 investors, entrepreneurs and industry experts to hear presentations from 19 of China's young life science companies. The event, held September 21-22, was the fourth annual BioBay Forum. It was organized by ChinaBio® LLC and Suzhou BioBay life science park.

Deals and Transactions

Hua Medicine, an innovative drug development and commercialization company in China, announced today, in conjunction with the BioBay Investor Forum organized by ChinaBio LLC and Suzhou BioBay, that it has secured $50 million in new financing commitments from a prestigious group of US and Chinese healthcare investors (see story). The funds will be used to further Hua’s internal development programs as well as provide financial resources for the acquisition, development and commercialization of additional programs.

“Right now, the time is perfect for a China pharma startup,” declared Li Chen, PhD, CEO and Co-founder of brand-new Hua Medicine in an exclusive interview with ChinaBio® Today (see story). One arm of the Hua Medicine business plan is to in-license drugs from the US and Europe that it will develop and commercialize in China; another arm will discover new medicines with its internal programs for patients worldwide. In the interview, Dr. Chen details Hua's business plan and why the company will succeed.

Cipla (BSE: 500087), the Indian generic drugmaker, revealed it has invested $165 million to build facilities in China and India to produce biosimilars (see story). The company is working on developing copies of at least a dozen biotech drugs with a goal of charging only one-third their current price. Last year, Cipla paid $25 million to buy a 25% stake in BioMab, a Shanghai maker of biotech drugs. Cipla and BioMab both contributed to the $165 million investment, though details were not disclosed.

Henan Lingrui Pharmaceutical (SHA: 600285) will raise $60.5 million in a private placement of 36 million shares (see story). The company will use the proceeds to expand production of three oral TCM products.

China Grand Pharmaceutical and Healthcare Holdings (HK: 0512) paid $17.2 million for an 81% stake in Wuhan Kernel Biotechnology (see story). Wuhan Kernel develops and sells bio-pesticides (most of which are exported) and feed additives. China Grand Pharma, headquartered in Hong Kong, makes drugs and APIs in its PRC-based subsidiaries, with a specialty in cardiovascular and ophthalmology drugs.

Big Pharma in China

AstraZeneca (NYSE: AZN) plans to continue an emphasis on partnership in China drug development, rather than outright acquisition of China biopharmas. The strategy was articulated by Steve Yang, PhD, AstraZeneca vice-president and head of R&D for Asia and emerging markets (see story). "In China, our collaboration strategy is to forge partnership with leading academic and medical institutions that already have in-depth expertise in Asia-specific diseases," said Yang.

Pfizer (NYSE: PFE) has signed a China drug distribution deal with Jointown Pharmaceutical Group (SHA: 600998) (see story). The agreement will give Pfizer entry into Jointown’s network of provincial hospitals, OTC outlets and other rural markets. As a result of the arrangement, Pfizer is shutting down its own network that distributed drugs to pharmacies. Financial details of the relationship were not disclosed.

Trials and Approvals

Daiichi Sankyo (TSE: 4568) received SFDA approval for silodosin, a novel treatment for painful or difficult urination (dysuria) associated with benign prostatic hyperplasia (see story). In 2008, Daiichi Sankyo paid $4.8 billion to buy a majority stake in Indian generic drugmaker Ranbaxy Labs (BSE: 500359), combining Ranbaxy's strength in generic drugs with its own expertise in patented cardiovascular and cancer drugs.

Disclosure: ChinaBio® has a business relationship with Pfizer.