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Week in Review: AstraZeneca Commits $800 Million to China

publication date: Dec 19, 2015
 | 
author/source: Richard Daverman, PhD

Deals and Financings

AstraZeneca (NYSE: AZN) announced plans to invest $800 million in China drug development over the next ten years to speed up development of its portfolio of innovative biologics and targeted medicines for China patients (see story). As part of the plan, AstraZeneca will make WuXi AppTech its designated China biologics manufacturer, though this arrangement will apparently last for only a short time. AstraZeneca secured an option to buy WuXi's smaller biologic facility, located in WuXi City, for $100 million sometime in the next few years and will, presumably, take its biologics manufacturing back in-house. Currently, WuXi is building a larger biologics plant in Shanghai, which will begin operations in 2017. 

WuXi Healthcare closed WuXi Healthcare Ventures II, L.P. with funding of $290 million, well above the target of $200 million (see story). Following the format of its first fund, WXHVII will identify early stage investments, usually cross-border, adopting a strategy of "find in U.S. and build in China." Several of WuXi's investments, such as diagnostics company Foundation Medicine, have been strategic, establishing relationships with companies that later became partners with WuXi AppTec, the CRO, which was reported to have made a $50 million anchor investment in the new fund. 

WuXi Healthcare Ventures of Shanghai led a $30 million Series C financing for AltheaDx, a commercial stage pharmacogenetics diagnostics company located in San Diego (see story). AltheaDx said the round would enable outcome trials for its IDgenetix® testing portfolio and expand its commercialization. AltheaDx's bioinformatics platform and PGx product testing portfolio are designed to identify the best drug for individual patients as well as dosing levels and possible drug-drug interactions.  

Meinian Onehealth Healthcare upped its bid for iKang Healthcare (NSDQ: KANG), a rival chain of China clinics, to $23.50 per ADS (see story). Previously, Meinian offered $22 for each iKang ADS. iKang, which made a $17.80 bid per ADS to take the company private in late summer, has responded to Meinian's offer by proposing a poison pill that would make an outside takeover almost impossible. Its own privatization offer is now 32% below Meinian's, and so far iKang has not raised its original offer price. 

Yisheng Biopharma, a Beijing vaccine company, will collaborate with the United States Army Medical Research Institute of Infectious Diseases to develop an Ebola vaccine using Yisheng's proprietary PKA adjuvant (see story). The agreement was signed between the USAMRIID and Yisheng's US subsidiary. Apparently, both entities will have rights to vaccines developed by the collaboration, for either Ebola or other viruses. 

Novogene, a Beijing genomics-diagnostics company, partnered with Illumina (NSDQ: ILMN) to develop a user-friendly clinical diagnostic for prenatal DNA and oncology testing in China (see story). The two companies will combine Illumina sequencing technology with Novogene's advanced clinical application expertise. Specifically, Novogene will provide its nucleic acid extraction, library preparation, and data analysis software, while Illumina will provide NGS instrument components and related reagents. 

Easton Pharma of Chengdu entered into a deal with Germany's XL-protein GmbH that calls for XL-protein to develop long-acting biopharma products for unmet needs in ophthalmology (see story). XL-protein will use its proprietary PASylation® technology for drug half-life extension initially for one Easton target, which was not disclosed. The German company will be responsible for preclinical development activities, while Easton will develop, make and market the PASylated compound. 

Trials and Approvals

Hutchison MediPharma (AIM: HCM), the Shanghai novel drug arm of Hutchison China MediTech, started a China Phase III trial of cancer drug sulfatinib (see story). The trial, SANET-ep, will enroll patients with neuroendocrine tumors (NETs) that do not originate in the pancreas. An oral drug, sulfatinib inhibits VEGFR and FRFR. In a Phase I trial, it showed the highest objective response rate of any drug so far in this patient population. Hutchison MediPharma continues to hold global rights to sulfatinib. 

Celsion (NSDQ: CLSN) of New Jersey received CFDA approval to conduct China clinical trials of its liver cancer drug, ThermoDox®, as part of a Phase III global study (see story). ThermoDox is Celsion's proprietary heat-activated liposomal encapsulation of doxorubicin. In 2013, ThermoDox failed a Phase III trial when it didn't increase survival, but a retrospective analysis suggested longer heat-activation treatment would improve results. Zhejiang Hisun Pharma (SHA: 600267) of China has first rights to bid on marketing the drug in China. 

Disclosure: none.


 

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