The world of China life science last week issued news across a broad front of themes: long-term strategy, consolidation, new JVs, the latest vaccines, more capital, official accreditations and more.

In an interview, Liam Condon, Managing Director of Bayer (XETRA: BAYG.X) HealthCare China, discussed the company’s China strategy (see story). “We will support innovation and new ideas in every area of the company, not just in research and development,” he said. Bayer is not interested in generic drug JVs, but will seek to expand its franchise in diabetes care, he continued. Mr. Condon will be a keynote panelist at the forthcoming China Partnering Forum organized by ChinaBio® and the EBD Group. The event will take place June 23-24 in Shanghai.

As China biopharma continues to evolve, the once-dominant model of Western companies seeking opportunities in Asia, a uni-directional relationship, shows signs of giving way to increased bi-directional cooperation between West and East (see story). In the last eighteen months, we have seen two large transactions in which fairly young China companies have made major acquisitions in the US. We expect this reciprocity to remain a trend, driven in part by an increasingly attractive US cost environment, particularly in real estate.

Commonwealth Biotechnologies (NSDQ: CBTE) agreed to acquire privately owned GL Biochem (Shanghai) Ltd., a manufacturer of peptide products and reagents (see story). In 2008, GL Biochem produced $13 million of revenue and $2 million of net income, growing at an annual rate of 40%. In an all-stock transaction, CBI will issue 6.56 million shares to owners of GL Biochem, which will give them 51% ownership of CBI.

Bio-Bridge Science (OTCBB: BGES), a vaccine development company, signed a joint venture agreement with JR Scientific Inc., a California maker of classical and custom cell culture medium and sera products (see story). The JV will produce cell culture medium in a Beijing facility. The new JV will be capitalized with 10 million RMB ($1.5 million). Bio-Bridge Science will contribute 5.1 million RMB for a 51% share of the JV; JRS will provide technology in return for a 15% stake; and other investors will add the remaining capital.

GlaxoSmithKline (NYSE: GSK) has formed a vaccine JV with Shenzhen Neptunus Interlong Bio-Technique Co. Ltd. (NIBT), an established China vaccine company (see story). The JV will produce flu vaccines for the China market. It will seek to increase GSK’s presence in emerging markets, which is one of the company’s long-term strategic goals. Also, the JV benefits GSK by using its vaccine adjuvant.

Sinovac Biotech (NYSE Amex: SVA) (北京科兴生物制品有限公司) has begun producing an influenza A (H1N1) pandemic vaccine (see story). The company today received virus seed from US Centers for Disease Control. The company is aiming at delivering a vaccine as soon as October. To increase its production capacity in this emergent situation, Sinovac is collaborating with other China vaccine companies to produce supplies Panflu, its pandemic vaccine, with H1N1 virus seed.

China Biologic Products (OTCBB: CBPO), a blood plasma company, placed $9.6 million in convertible notes with accredited investors (see story). China Biologic has been expanding by acquiring other blood plasma companies, and it is now the largest non-state owned blood plasma enterprise in China. The money will be used for final payments on its two latest purchases and to increase working capital.

Shenyang Pharmaceutical Industry Park (SPIP) recently held its official opening (see story). The park, which is the largest of its kind in northeast China, has been endorsed by the China Biopharmaceutical Technology Association. Currently, SPIP covers an area of 3.5 square kilometers and boasts an initial investment of 4.4 billion RMB ($647 million).

And, finally, Eurofins (NYSE Euronext Paris: FR0000038259), the Belgium-based laboratory services company, announced that its China central laboratory has been accredited by the College of American Pathologists (CAP) (see story). Eurofins opened the Suzhou lab in 2008. Eurofins now has two fully accredited labs in each of the major pharmaceutical development areas around the globe: North America, Europe and Asia.


Disclosure: none.