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Week in Review: Fosun and TPG Offer $369 Million for Chindex

publication date: Feb 22, 2014
 | 
author/source: Richard Daverman, PhD

Deals and Transactions

Fosun Pharma (SHA: 600196; HK: 2196) and US private-equity company TPG have teamed up to take Chindex International (NSDQ: CHDX) private in a $369 million transaction (see story). Chindex is a US company that owns and operates two private hospitals in China – one in Shanghai, the other in Beijing – plus multiple affiliated out-patient clinics. The deal reflects two prevalent China themes: the go-private trend among US-listed companies with China operations, and China’s new-found openness to foreign investment in healthcare delivery.

Harbin Gloria Pharma (SHE: 002437) acquired Shanghai Huatuo Medical Science through a series of purchases with at least 75 shareholders (see story). All together, Gloria paid $163 million for a 90.9% stake in Huatuo, though it owns 98.9% of the company (it did not disclose the price on an 8% purchase). Huatuo has committed to producing profits of at least $17.4 million in 2014. Gloria said the purchase price works out to a price/earnings ratio of 9.6, implying a purchase price of approximately $170 million.

Tonghua Shuanglong Chemical (SHE: 300108) will pay $178.2 million to acquire Jinbao Pharmaceutical Co., in a deal that combines cash and stock (see story). Jinbao is a TCM company. Shuanglong explained that its existing business is entirely dependent on sales of silica products. Jinbao’s operations give Shuanglong greater diversification.

According to reports, Citic Private Equity Funds Management is seeking funds from China banks to buy Biosensors, a China cardiovascular device company that is listed in Singapore (see story). The deal would be large: Biosensors’ market capitalization is $1.2 billion. Citic Private Equity paid $312.2 million to buy a 22% stake in Biosensors last November from Shandong Weigao Group. 

Lee’s Pharma (HK: 950) in-licensed China rights to tafoxiparin, a clinical-stage product from Dilafor AB of Sweden (see story). Tafoxiparin is a heparin derivative that has completed a Phase II trial as a treatment to induce labor. Lee’s will be responsible for conducting Phase II and III trials of the drug in China. Specific financial terms of the deal were not disclosed.

Solentim, a UK medical device maker, will distribute its CellMetric device in China through two companies: Beijing-based Bio-reach Ltd and Dynamax Biotech Ltd of Shanghai (see story). CellMetric is a bench-top cell imaging and analysis instrument used for drug development. The distributors have already logged their first sales in China.

 Featured Companies

In an exclusive interview with ChinaBio® Today, Dr. Jonathan Wang, Senior Managing Director of OrbiMed Asia, discusses OrbiMed’s investment focus, its relationships with portfolio companies, and the rapidly increasing sophistication of China’s life science (see story). OrbiMed is the largest investment firm dedicated entirely to life science and healthcare in terms of assets under management. To date, it has made 19 investments in Asia.

Disclosure: none.


 

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