Did you know?

ChinaBio® Group is a consulting and advisory firm helping life science companies and investors achieve success in China. ChinaBio works with U.S., European and APAC companies and investors seeking partnerships, acquisitions, novel technologies and funding in China.  

Learn more >>

Free Newsletter

Have the latest stories on China's life science industry delivered to your inbox daily or weekly - free!

  Email address:
   

The Week in Review: IPO and M&A Pipeline

publication date: Nov 27, 2010
 | 
author/source: Richard Daverman, PhD
Beijing Pharmaceutical, a subsidiary of China Resources Medications Group, plans to list on the Hong Kong Stock Exchange (see story), one more piece of evidence that Hong Kong is the exchange of choice for large China pharma IPOs. As yet, the size of the offering is not known. However, Beijing Pharma’s revenues are expected to hit 16 billion RMB ($2.4 billion) in 2010, up from 10 billion ($1.5 billion) in 2009.

Two China biopharmas, Xiangxue Pharmaceutical (SHEZ: 300147) and Guangdong By-Health Biotechnology (SHEZ: 300146), have released prospectuses for their IPOs on the ChiNext exchange (see story). Xiangxue Pharma, a TCM drugmaker, plans to raise $56 million, and By-Health Biotechnology, a company making nutritional supplements, is seeking $42 million in new capital.

Sihuan Pharma (HKEX: 0460) will pay 2.4 billion RMB ($371 million) to acquire Dupromise Holdings, a fellow maker of cardio-cerebral vascular drugs (see story). The price, to be paid in installments, is fixed as 12 times the net income of Dupromise’s 2011 net income, with 2.4 billion RMB set as the maximum. The transaction will give Sihuan, already a major player in its market, even more clout.

On November 3, 2009, Novartis (NYSE: NVS) announced it would pay $125 million for an 85% stake in vaccine maker Zhejiang Tianyuan Bio. One year later, the transaction has still not been approved, casting some doubt on whether it will ever be closed (see story). Although the deal stipulated just one year for completion, it also locked up Zhejiang Tianyuan for 18 months, implying that the acquisition is not completely dead.

Jiangsu Wuzhong Industrial (SHA: 600200) announced it has been awarded a subsidy of 12 million RMB ($1.8 million) to develop a cancer drug (see story). Wuzhong owns the IP for the drug, whose mechanism of action was not disclosed.

ShangPharma Corporation (NYSE: SHP) reported Q3 revenues climbed 17% to $23.1 million and net income rose 33% to $2.7 million or 22 cents per share (see story). These were respectable gains, but they didn’t create any excitement in the investor community, which prefers big upside surprises. Since completing its IPO in October at $15 per share, ShangPharma has watched its shares drift lower.

Aoxing Pharmaceutical (AMEX: AXN) announced the SFDA granted a Manufacturing License to its joint venture, Hebei Aoxing API Pharmaceutical Company (see story). Aoxing expects to begin commercial production at the JV next year. The JV’s first product will be the API for naloxone hydrochloride, an opioid antagonist administered to counteract the effects of narcotic drug overdose.

Disclosure: none.









 

Share this with colleagues:

 

ChinaBio® News

Greg Scott BIO-Europe Interview
Greg Scott Interviewed at BIO-Europe Spring

How to bring your China assets to China in 8 minutes


Greg Scott Mendelspod Interview
"Mr. Bio in China."
Mendelspod Interview

Multinational pharma held to a higher standard in China

Partner Event
November 2-3, 2023 | Shanghai
November 7-8, 2023 | Digital