Deals and Financings

MGI Tech Company, a Shenzhen maker of gene sequencing machines, announced it closed its first funding round with more than $200 million (see story). MGI is a subsidiary of BGI, China's largest sequencing services provider. Founded in 2016, MGI is dedicated to offering a China alternative to international gene sequencing makers. The funding included CITIC, Jinshi Capital, Songhe Capital and Dongzheng Capital. According to unconfirmed media reports, the financing was much less than the $1 billion MGI was seeking in a pre-IPO round for a 20% stake of the company.

Xynomic Pharma has closed its business combination with Bison Capital Acquisition (NSDQ: BCAC), becoming a wholly-owned subsidiary of BCAC (see story). BCAC, which will change its name to Xynomic, will issue 42,860,772 new common shares of stock to Xynomic’s shareholders, worth $191.6 million. Another $55 million in shares will be available to Xynomic shareholders if certain objectives are met. Xynomic, founded in 2016, is headquartered in the US with operations in Raleigh, North Carolina and Shanghai. The company is developing three in-licensed novel oncology therapeutics in the US, Europe and China.

HanX Biopharma, a China oncology company, in-licensed China rights to a Phase III candidate for myelodysplastic syndromes from Onconova (NSDQ: ONTX) in a $51.5 million agreement (see story). HanX agreed to pay $4 million upfront ($2 million fee and $2 million investment) plus put $2 million in escrow for China clinical development of rigosertib in patients with MDS. It will also pay Onconova up to $45.5 million in regulatory and sales milestones. In addition, HanX expects to test rigosertib together with its PD-1 antibody, now in China Phase II/III clinical trials.

AnHeart Therapeutics of Hangzhou raised $14.6 million in a Series A round from Decheng Capital, a China life science investor (see story). AnHeart uses its expertise in global clinical development to develop innovative products, which it partners at near-term value inflection points. In late 2018, AnHeart in-licensed global rights to an oral, highly selective ROS1/NTRK small molecule inhibitor from Daiichi Sankyo. AB-106 is in two Phase I clinical trials in the US and Japan. After the Phase I trial, AnHeart will assume responsibility for further clinical development.

Leads Biolabs of Maryland, a fully-owned subsidiary of a US-China JV, Nanjing Leads Biolabs, granted Pneuma Respiratory an exclusive license to develop Leads' panel of immuno-oncology mAbs and fusion protein molecules for pulmonary delivery (see story). Pneuma, based in North Carolina, has developed a proprietary breath-activated digital inhaler. Using the inhaler, Pneuma will develop Leads' immuno-oncology therapies for pulmonary delivery to treat oncologic or immune-mediated lung diseases. Leads has developed a portfolio of more than ten novel mono or bispecific antibodies for cancer immunotherapy and other major diseases.

China's Winhealth Pharma has in-licensed greater China rights for two FDA approved pain management drugs from Cumberland Pharma (NSDQ: CPIX) (see story). Winhealth will have rights to distribute Acetadote® (acetylcysteine) Injection, used to treat liver damage from acetaminophen overdose, and Caldolor® (ibuprofen) Injection, used to treat pain and fever in hospitals. Winhealth currently markets 12 pharmaceutical products in China via partnerships with multinational pharmas and other companies. Established in 2006, Winhealth was founded in Hangzhou and now has its headquarters in Hong Kong.

Shenzhen Mindray (SHZ: 300760) signed a purchase and license agreement allowing it to use Masimo's (NSDQ: MASI) technology for noninvasive, continuous measurement of oxygen saturation, pulse rate, and perfusion index in its monitoring devices (see story). The SET® Measure-through Motion and Low Perfusion™ pulse oximetry will be available in Mindray devices sold in some European countries, the Middle East, Asia-Pacific (excluding China), including Australia and India. The new pact expands an earlier agreement between the two companies. Masimo is headquartered in Switzerland.

Shanghai ChemPartner, a China CRO, extended its collaboration with Berkeley Lights Inc. of South San Francisco by installing BLI's Beacon® Optofluidic platform to offer B Cell antibody discovery services to its clients (see story). ChemPartner will combine BLI's antibody discovery workflow for B cells with ChemPartner's assays. The Beacon® platform can screen tens of thousands of plasma B cells or gene-edited cells automatically, speeding up a usually time-consuming process. The Beacon® platform enables plasma B cell characterization in less than a day.

Company News

WuXi Biologics (HK: 2269), a China biologics CRO/CMO, has begun construction of a new 1.3 million square foot integrated manufacturing center for innovative biologics in Chengdu, one of the largest cities in Southwest China (see story). The facility will be WuXi Biologics' 12th drug substance manufacturing facility. Bu 2022, WuXi plans to have a total production capacity of 220,000 liters, with facilities around the world, including China, Ireland, Singapore and US. Initially, the Changdu facility will have a bioreactor capacity of 48,000 liters.

Trials and Approvals

Suzhou's Innovent (HK: 01801) and its partner Lilly (NYSE: LLY) announced their anti-CD20 biosimilar to rituximab (MabThera/Rituxan) met its primary endpoints in two China clinical trials (see story). The candidate, IBI301, was compared to rituximab in a Phase III trial in patients with diffuse large B-cell lymphoma and also in a pharmacokinetic (PK) study in patients with CD20-positive B-cell lymphoma. The Roche/Genentech drug is the only one in its class available for DLBCL in China; if approved, the Innovent/Lilly biosimilar will offer a less expensive alternative.

Disclosure: none.