Deals and Financings

OrbiMed, a global healthcare investor, closed its third Asia private equity fund with $551 million in capital commitments, about $100 million more than the target listed in its initial filing six months ago (see story). OrbiMed Asia Partners III will consider investments in all parts of Asia healthcare, but it expects to focus on growth-stage product and service companies in China and India. The Fund plans to make 15-20 investments that range from $10 to $75 million each. OrbiMed's two previous Asia funds totaled slightly less than $500 million.  

Innovent Biologics of Suzhou announced a $457 million deal to acquire global rights for a small-molecule IDO inhibitor, which it intends to pair with its PD-1 candidate, IBI308 (see story). Both molecules are immuno-therapies, but their mechanisms are different. Innovent made the deal with the Shanghai Institute of Organic Chemistry, Chinese Academy of Sciences. The agreement specifies an upfront payment plus milestones and a royalty, though details were not disclosed. In 2015, Lilly (NYSE: LLY) agreed to a $1 billion deal for ex-China rights to as many as nine Innovent biologic candidates; IBI308 is one of them.

3SBio (HK: 1530) of Shenyang will pay $290 million to acquire the biologic contract development and manufacturing operations of Therapure, a Toronto area biopharma focused on plasma drugs (see story). 3SBio formed a JV with CPE Funds, the private equity arm of CITIC, to complete the purchase. Therapure will spin off its plasma-based drug manufacturing and commercialization operations into a new company, called ProductsCo. In addition to the $290 million purchase price, 3SBio/CPE will contribute $16-$20 million to ProductsCo for the construction of a manufacturing facility. 3SBio, a China innovative biologic drug company, positioned the acquisition as a move into a new market that will provide the opportunity for future alliances with North American biopharmas.

Eight Roads, Fidelity Investment's venture arm, launched a $250 million China Healthcare Fund, its first fund dedicated to China healthcare (see story). The Healthcare fund joins four previous China venture funds that also invested in healthcare, though not exclusively. The Healthcare fund plans to allocate 40% of its funds to therapeutics. Eight Roads will invest in existing companies, and it will also found new ventures that address unmet market demand along with difficult health and delivery issues. Fidelity has been involved in China healthcare since 1995.  

WuXi NextCODE completed a Series B fundraising with $240 million in new capital for its genomics CRO operations (see story). In May, the company closed the first tranche of the round. NextCODE is WuXi AppTec's platform for genomic data, and Dr. Ge Li, Chairman of the company, said NextCODE is working towards sequencing millions of genomes. Two years ago, WuXi AppTec paid $65 million to acquire NextCODE, which had developed a genomics platform based on the largely homogeneous genomic profile of Iceland. Sequoia China led the B round.  

Sisram Medical, an Israeli company that makes laser-based aesthetic devices, will raise up to $200 million by conducting an IPO on the Hong Kong Exchange (see story). Sisram is a subsidiary of Shanghai Fosun Pharma (SHA: 600196; HK: 02196). In 2013, Fosun teamed up with Chindex, which would become a Fosun subsidiary, and a private equity firm to pay $240 million for 96% of Israel's Alma Lasers. The holding company is named Sisram. The IPO will value Sisram at up to $800 million, with Fosun owning a 66% stake.  

Beijing's SinoVision Technologies raised $29 million in a B round to support its portfolio of CT scanners (see story). Founded in 2012, SinoVision makes 16-Slice, 32-Slice and 64-Slice CT scanners. It owns IP for CT detectors, one of the three key components of a CT scanner, but the other two components, X-ray tubes and high voltage power supply, are currently manufactured by US companies. With the proceeds of the fundraising, SinoVision will acquire the technology to build all three key components of its CT medical devices.  

Shanghai Sanyou Medical, an orthopedic medical device maker, raised $14 million from Yingke Private Equity in a B round (see story). The company has developed minimally invasive spine implants and trauma devices, which it sells across China. Following a 2010 restructuring, Sanyou established the Tytus Lab for R&D with an international team. The company will use the capital for R&D and an eventual IPO on a China stock market.

China Medical Systems of Shenzhen will gain Asia rights (ex-Japan) to a MRSA candidate from Destiny Pharma, a British company specializing in treatments for drug resistant infections (see story). CMS contributed $4 million to Destiny's recent $20.6 million IPO on London's AIM exchange, and its parent added another $4 million. In return, CMS and Destiny have signed a binding framework agreement giving CMS the rights to develop and commercialize Destiny's MRSA treatment, XF-73, in Asia.  

TPG Capital Asia acquired a majority stake in OPC Holding Company, a Taiwan company that provides clinical trial services in China, Taiwan, South Korea and Japan (see story). OPC has significant experience in bioequivalence trials, which may become important as China and other Asian countries require drugmakers to prove the efficacy of their generic products. OPC also operates a pan-Asian CRO unit that provides late-stage development services for novel drugs. TPG Capital Asia, a private equity investor, has $6 billion of assets under management. This size of its OPC investment was not disclosed.  

Wuxi Fortune Pharma partnered with Andarix Pharma of Boston to develop Tozaride, a radiolabeled cancer drug candidate, in China (see story). Tozaride combines a somatostatin peptide with a high-energy, beta-emitting radionuclide, Rhenium-188. The peptide binds to lung and neuroendocrine cancers. In the US, Andarix has completed three clinical trials of Tozaride in patients with refractory lung cancer. Fortune will own certain specific marketing rights to Tozaride in China, though the details of the agreement were not disclosed.

Company News

In a letter to China employees, Andrew Hodge, President, Lilly China (NYSE: LLY), notified staff members that Lilly will close down its Shanghai R&D center (see story). The center opened in 2012 and is located in Zhangjiang Hi-Tech Park. Dedicated to diabetes research, it currently has 200 employees. The closing is part of a larger global Lilly restructuring in which 3,500 Lilly employees will leave the company. In the last year, two of Lilly's late-stage pipeline drugs suffered setbacks. To pare down its development costs, the company plans to cut seven Phase II candidates and partner another ten mid-stage cancer drugs. Lilly will prioritize development of seven promising candidates.

Disclosure: none.