Deals and Financings
WuXi PharmaTech (NYSE: WX), China’s largest CRO/CMO, has filed to list its chemical manufacturing subsidiary, SynTheAll Pharmaceutical Co. Ltd., on China’s Third Board, a two-year old electronic OTC exchange (see story). Although it has submitted a listing application, WuXi said it may not conduct an IPO for STA immediately after approval. WuXi further explained that its chemical CMO subsidiary requires greater capital investment than the other parts of its CRO/CMO business.
Shanghai Fosun Pharma (SHA: 602196; HK; 2196) will pay $137 million to acquire a 65% sake in Suzhou Erye Pharma, a company that makes antibiotics and other medicines (see story). In addition, according to media reports, the owner of the remaining shares of Erye has the right to request that Fosun purchase its 35% ownership in the company for $111 million in January 2020.
CANbridge Life Sciences, a Beijing biopharma startup, raised $10 million in a Series A round that it will use for new business opportunities and to advance its drug portfolio (see story). The company in-licenses China rights to drug candidates from western drug companies. Investors in the round were Qiming Venture Partners and TF Capital, a VC fund begun by China CRO Tigermed that includes other healthcare companies.
Oramed Pharma (NSDQ: ORMP), an Israeli company that develops oral versions of IV drugs, raised $5 million in a private placement with Guangxi Wuzhou Zhongheng Group (SHA: 600252) (see story). Oramed will use the proceeds for clinical trials of ORMD-0801, an oral insulin product, and development of its oral GLP-1 analog project, also for diabetes. Oramed expects Zhongheng to develop its oral drug products in China.
Sinopharm A-Think Pharma in-licensed greater China rights to a clinical-stage targeted cancer treatment from Aeterna Zentaris, a Canadian biotech (NSDQ: AEZS; TSX: AEZ) (see story). The drug, zoptarelin doxorubicin, is a combination of the well-known chemotherapy doxorubicin and a novel synthetic peptide carrier. It is currently in a Phase III trial for endometrial cancer. Sinopharm A-Think made a $1 million upfront payment and is liable for additional regulatory and commercial milestones.
