Deals and Financings

MicroConstants China in-licensed global rights to novel discovered-in-China AA98 antibodies from Beijing's Institute of Biophysics, Chinese Academy of Sciences (see story). With anti-angiogenesis and anti-metastasis mechanisms, AA98 antibodies are possible treatments for various cancers, multiple sclerosis and age-related macular degeneration. The AA98 drug candidates covered in the agreement were developed in the lab of Prof. Xiyun Yan, Director of IBP's Key Laboratory of Protein and Peptide Drugs. MicroConstants agreed to a package of more than $16 million in upfront and development milestones plus royalties on sales. The deal includes an AA98-based diagnostic. 

China Traditional Chinese Medicine Co. (HK: 570) will pay as much as $1.3 billion for an 81.5% stake in Jiangyin Tianjiang Pharmaceutical Co., a rival TCM company (see story). Once combined, the two companies will claim a greater than 50% share in China's concentrated TCM granules market. China TCM, formerly known as Winteam Pharma, is a part of the sprawling state-owned China National Pharmaceutical Group Corporation (Sinopharm), which holds a 40% stake in China TCM. 

3SBio of Shenyang acquired Sirton Pharmaceuticals SpA, a Northern Italy CMO/CRO with a focus on injected drugs, from First Shanghai Limited for an undisclosed sum (see story). First Shanghai is a Hong Kong-based company that has owned Sirton for the past three years. The acquisition, said 3SBio, is part of a company initiative to expand into developed countries. 

Shanghai Fosun Pharma (SHA: 600196; HK: 02196) signed a framework agreement with the First Hospital of Qiqihar City, the second largest city in Heilongjiang Province, to partner on building a new hospital (see story). Fosun will supply an undisclosed amount of cash for a 53% stake in the venture; First Hospital will contribute land and buildings for the remaining 47%. In addition, the two partners will form a joint venture to purchase drugs, devices, equipment and consumables for both First Hospital and the New Hospital, with a goal of lowering procurement costs. Fosun will own 51% of this second company. 

Company News

Waters Corporation (NYSE: WAT), a US lab equipment maker, and the Chinese Pharmacopeia Commission (ChP) announced the official opening of the Joint Open Laboratory in Beijing (see story). The lab, which will be run by Waters and ChP as partners, will develop standards for China's pharma industry, with a special focus on establishing normalizing criteria for traditional Chinese medicines. The lab was outfitted with Waters' chromatography and mass spectrometry machines. 

Novotech, an Australian clinical-stage CRO, opened an enlarged, permanent office in Hong Kong (see story). The new office will focus on Phase I trials in Hong Kong, which will take advantage of recently opened Phase I facilities at local universities. Hong Kong is, Novotech noted, a place officially recognized by China as a trial site for specific therapeutic areas. Three months ago, Novotech opened its first office in Shanghai, replacing its policy of working in China through partners. 

Trials and Approvals

Moberg Pharma AB (OMX: MOB) of Sweden said its marketing partner, Menarini Asia-Pacific, received China approval to market Kerasal Nail™, an OTC fungal nail product (see story). Kerasal Nail treats nails that are discolored/deformed from fungal infection or psoriasis. First approved in Sweden in 2011, Kerasal is now available in more than 25 countries. Menarini distributes the product in Italy, and in 2013, its Menarini Asia-Pacific division became Kerasal Nail's distributor for China and eight APAC countries. 

Disclosure: none.