Deals and Financings

Beigene, a Beijing biopharma, filed to raise $100 million in a US IPO (see story). The company develops novel, molecularly targeted and immuno-oncology drugs to treat cancer. Founded five years ago, Beigene currently has four drugs in clinical trials and a number of other molecules in preclinical development. Last week, another prominent China novel drug developer, Hutchison China MediTech, also filed for a $100 million US IPO. The two initial offerings run counter to a three-year trend that has taken almost all US-listed China biopharmas private. 

ZY Investments, a Chinese healthcare-focused private equity fund headquartered in Beijing, has teamed up with Sundiro Holding, a motorcycle manufacturing and coal mining company located in Hainan province, to establish a $473 million healthcare investment fund (see story). The new fund intends to invest in private Chinese healthcare companies. The goal will be to use M&A to consolidate the companies and/or to restructure the assets of its portfolio companies. 

Genexine (KOSDAQ, 095700), a South Korean novel drug developer, out-licensed China rights to three clinical or near-clinical stage biologic drug candidates to Tasly Pharma (SHA: 600535) of Tianjin in a deal worth up to $100 million (see story). In addition, Tasly paid an undisclosed sum to acquire global rights for two Genexine preclinical molecules. For the clinical-stage assets, Genexine will receive $20 million upfront and up to $80 million in development and commercial milestones. Tasly will also pay royalties on sales. A Tasly subsidiary, Tasgen, will be responsible for development of the Genexine products. 

Genexine (KOSDAQ, 095700), a South Korean novel drug developer, out-licensed China rights to three clinical or near-clinical stage biologic drug candidates to Tasly Pharma (SHA: 600535) of Tianjin in a deal worth up to $100 million (see story). In addition, Tasly paid an undisclosed sum to acquire global rights for two Genexine preclinical molecules. For the clinical-stage assets, Genexine will receive $20 million upfront and up to $80 million in development and commercial milestones. Tasly will also pay royalties on sales. A Tasly subsidiary, Tasgen, will be responsible for development of the Genexine products. 

WuXi Healthcare Ventures, the investment arm of WuXi PharmaTech (NYSE: WX), participated in the $115 million E financing of California's 23andMe (see story). 23andMe offers a $199 direct-to-consumer saliva DNA test. According to one report, the test is a loss leader for the company, which is more interested in developing a genomics database than selling tests. About 80% of 23andMe's customers -- about 100 million people -- allow the company to include their DNA reports (anonymously) in a genomic database. As WuXi ramps up its genomics services, the DNA database have sparked its interest in 23andMe. 

Yabao Pharma (SHA: 600351) entered a second strategic collaboration with Eli Lilly (NYSE: LLY) for China development of a novel diabetes treatment (see story). The latest drug candidate is Lilly's sodium-glucose linked transporter inhibitor (SGLT1), which has completed a Phase I trial in Singapore. Yabao will own China rights to the SGLT1 molecule and will fund its development, though Lilly retains buy-in options to the China program. In July 2014, Lilly and Yabao agreed to co-develop Lilly's glucokinase activator (GKA). 

Company News

Zai Lab, a two-year-old Shanghai innovative drug company, has opened a preclinical drug R&D center in Zhangjiang Hi-Tech Park, where it expects to discover and develop novel drugs for China and global markets (see story). To date, Zai has in-licensed four clinical stage drug candidates from western pharmas. Now, the company will become an integrated pharmaceutical organization. At the same time, Zai announced a strategic alliance with Tsinghua University Immunology Institute, which will add drug candidates to Zai's portfolio of cancer and immunology candidates. 

In September, AbbVie (NYSE: ABBV), the US-based big pharma, established a China Development Team to speed development of AbbVie's innovative drugs for the China market (see story). The company considers China an important market, and China's recent drug approval reforms will facilitate the introduction of novel drugs in China, AbbVie says. In 2013, the company set up its China headquarters in Shanghai. AbbVie's upbeat assessment of China is a significant endorsement of the country's porposed changes to its drug regulatory system. 

Earlier this month, China scientist Tu Youyou was awarded the Nobel Prize for Medicine for her work in discovering artesunate, the TCM-based drug that treats malaria (see story). Now, researchers in Great Britain want to prove that artesunate can also be used to prevent the metastases associated with colorectal cancer. To help pay for a clinical trial, British researchers have started a crowdfunding campaign that has already raised 90% of its $77,000 fundraising goal. 

Disclosure: none.