Deals and Financings

Luye Pharma Group, headquartered in Shanghai, plans to raise as much as $764 million in a Hong Kong IPO next month (see story). The diversified pharma, which was previously listed in Singapore, was taken private in 2012 in a transaction that valued the company at $513 million. The new IPO implies a value of $2.5 billion. The parties that participated in the go-private transactions – three private equity firms, the company’s chairman and the sovereign fund of Singapore – will sell shares in the IPO. 

Shanghai Fosun Pharma (SHA: 600196; HK: 2196) will make a $46.3 million investment in Nature's Sunshine Products (NSDQ: NATR), a US maker of nutritional and personal care products (see story). Fosun will own 15% of Nature’s Sunshine after completing the investment. The two companies will also form a drug distribution JV to distribute Nature’s Sunshine’s products in China by placing them in Fosun’s retail outlets and by direct mail. Nature's Sunshine will own 80% of the JV, investing $16 million initially, and Fosun will pay $4 million for a 20% stake.

Cancer Genetics (NSDQ: CGIX), a diagnostics company specializing in cancer, signed a non-binding Letter of Intent to acquire Gentris Corporation, which provides pharmacogenomics, biomarker and biorepository services (see story). Gentris is currently building a US FDA-compliant lab in Shanghai’s Zhangjiang Hi-Tech Park. The purchase price for Gentris is set at $4.75 million, comprised of $3.25 million in cash and $1.5 million in CGI stock. An additional $1.5 million of performance-based earnouts are also available. 

Verisante Technology (OTCQX: VRSEF; TSX-V:VRS) of Canada sold China rights for its Core ™ cancer diagnostic device, a laser Raman Spectroscopy (LRS) system, to an unnamed partner (see story). The partner will make a $300,000 private placement in Verisante and be responsible for China registration, including a China clinical trial, if necessary. To close the deal, Verisante must raise an additional $2.5 million before the end of September. 

Trials and Approvals

Jiangsu Hengrui Medicine (SHA: 600276) was approved by the FDA for US marketing of oxaliplatin, a generic treatment for colon and rectum cancer (see story). Hengrui, whose major focus is chemotherapies, has annual revenues of $1 billion. The company said the latest US approval is part of its globalization initiative. Hengrui already markets oxaliplatin in China and Europe. 

Bruker Corporation (NSDQ: BRKR) was cleared by the CFDA to market its IVD MALDI Biotyper System in China as a medical device to identify microorganisms found in humans (see story). According to Bruker, the machine shortens the wait-time for results and broadens the species coverage. Bruker is a Massachusetts maker of scientific instruments for molecular and materials research that are also used for industrial and applied analysis.

Disclosure: none.