Deals and Financings

Ascentage Pharma of Suzhou completed a $53 million Hong Kong IPO, pricing the offering at the top end of the indicated range with a market capitalization of almost $890 million (see story). The company is developing therapeutics for cancer based on its expertise in protein-protein interaction and apoptosis. Its lead drug, HQP1351, is in Phase II/III trials for chronic myeloid leukemia. Some of the IPO proceeds will be earmarked for commercialization of the candidate. Sino Biopharm (HK: 1177) was a cornerstone investor in the transaction with an order for $20 million of shares.

Fountain Medical, a global clinical CRO headquartered in Beijing, raised $62 million in a Series D financing led by Goldman Sachs, with Lilly Asia Ventures a co-investor (see story). Founded in 2007, Fountain Medical said it would use the proceeds to expand its offerings around the world. With the growth of biopharma development in China, the company offers global clinical CRO services to China and ex-China biopharmas. China's CRO industry is growing quickly, the company said, spurred by its adoption of global regulatory standards over the past few years.

NeuroRx of Philadelphia signed a funding agreement with GEM Global Yield LLC providing NeuroRx with up to $95 million following its IPO (see story). NeuroRx will use the funds to complete US and China Phase III clinical trials for NRX-101, a treatment for suicidal bipolar depression. The company must also finalize GMP manufacturing for both countries. In the US, the FDA has granted Breakthrough and Fast Track designations to NRX-101. So far, NeuroRx has not scheduled an IPO.

Verseau Therapeutics, a Boston-area macrophage cancer immunotherapy company, launched with $50 million in initial financing from a group of investors that included China's 3SBio (HK: 1530) (see story). 3SBio will have China rights to a specified number of Verseau's candidates. Verseau is developing novel, first-in-class immunotherapies that target modulation of macrophages, which have the ability to promote or decrease an immune reaction. With the proceeds, Verseau plans to move its macrophage checkpoint modulator programs into clinical trials.

Taiwan Liposome Company (TLC) (NSDQ: TLC; TWO: 4152) completed a $27.3 million secondary offering to advance its nanomedicine candidates for pain management, ophthalmology and oncology (see story). The clinical-stage company uses three platforms to develop new drugs: LipAD™, a lipid-assembled drug delivery platform that controls onset speed and benefit duration; BioSeizer® which allows local sustained release of agents at a specific site; and NanoX™, a loading technology designed to increase active drug concentration while decreasing unwanted systemic exposure.

Exegenesis Bio, a Philadelphia gene therapy company, raised over $10 million in initial funding from China investors, K2VC, Kaitai Capital and Lenovo Star (see story). The company is developing affordable first-in-class and best-in-class gene therapies for high unmet needs, which it will market in China and globally. The company's executive team averages 15 years experience in cell and gene therapy in US companies. Zhenhua Wu, PhD, founder and CEO of Exegenesis, previously worked at several innovative biopharmas in the Philadelphia area and also at GSK and Merck.

Brii Biosciences, a US-China biopharma, in-licensed rights to develop three novel anti-infectives in China from Qpex Biopharma of San Diego (see story). Qpex believes the products could become best-in-class therapeutics for multi-drug resistant gram-negative infections. Brii is an in-licensing firm dedicated to bringing novel infection treatments to China. Founded in 2018, Brii raised $260 million in its first funding. Since then, it has announced several deals including a microbiome treatment for inflammatory bowel disease. Brii is headquartered in Durham, North Caroline with China operations in Shanghai.

Milu Labs, a Philadelphia company focused on bringing diagnostics to China/Asia, signed an MOU with Thermo Fisher (NYSE: TMO) to develop a non-invasive test that will assess the risk of adverse pregnancy problems (see story). The test will be built for Thermo Fisher's liquid chromatography-mass spectrometry device. Earlier this year, Milu in-licensed Asian rights to a NX Prenata liquid biopsy that tests the risk for pre-term birth. In the future, the companies plan to expand into oncology testing.

NovoCodex Biopharma (SHA: 600216) of Shanghai acquired China rights to an antibody drug conjugate aimed at CD70 positive cancers from San Diego's Ambrx (see story). The candidate targets renal cell cancers and melanoma. Previously, NovoCodex in-licensed rights to an Ambrx ADC for HER2 positive cancers. NovoCodex, a majority owned subsidiary of Zhejiang Medicine, will fund global development of ARX305 through Phase I clinical trials. It will also make an upfront payment along with development milestones and double digit royalties, though it will be eligible to receive an undisclosed share of ARX305 sales outside of China.

New Horizon Health, a Beijing company that develops tests for early diagnosis of GI and lung cancers, will partner with Prenetics to market ColoClear, its non-invasive colorectal cancer tests in Hong Kong and Southeast Asia (see story). Prenetics is a global genetic testing company that operates its direct-to-consumer genomics business via two subsidiaries -- CircleDNA in Asia and DNAFit in Europe. New Horizon, which developed ColoClear specifically for people of Asian ethnicity, says the test detected colon cancer with 92% sensitivity in clinical trials.

Company News

WuXi Biologics (HK: 2269) will build a vaccine facility in Ireland for its major product, an innovative vaccine developed by an unnamed global vaccine company (see story). Earlier this year, when the vaccine partnership was announced, WuXi said the product would generate $3 billion in revenues over the 20 year life of the contract. So far, WuXi has not disclosed the name of the partner, but it did say the "first of its kind" vaccine would be distributed to global markets. Local Irish sources say the vaccine facility will be a 15,500 square meter plant.

Germany's Merck (F: MRK) officially opened its Shanghai Innovation Hub, announcing that it will offer $14 million in seed money to innovative China startups (see story). The fund will make investments of between $550,000 and $1.1 million in healthcare, life science and performance materials companies. In addition, Merck plans to open a second China Innovation Hub in Guangzhou next month, with its own $14 million seed fund. The two funds are designed to get Merck more involved in China's startup scene.

Trials and Approvals

HighTide Therapeutics, a Shenzhen-Maryland biopharma, reported it has completed enrollment in a US Phase IIa trial of its novel NASH treatment (see story). The double-blind, dose-ranging trial will assess the efficacy and safety of HTD1801 in adults with NASH and type 2 diabetes. HighTide develops novel drugs to treat chronic liver diseases, gastrointestinal diseases and metabolic disorders. HTD1801, the company’s lead candidate, is a first-in-class new molecular entity in trials to treat primary sclerosing cholangitis (PSC), and nonalcoholic steatohepatitis (NASH). The FDA has granted HTD1801 Fast Track Designation for both diseases.

Disclosure: none.