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.
Free Newsletter
Have the latest stories on China's life science industry delivered to your inbox daily or weekly - free!
Free Report
The Week in Review: Shanghai Pharma Schedules Hong Kong IPO
publication date: Mar 12, 2011
|
author/source: Richard Daverman, PhD
Shanghai Pharma (SHA: 601607) scheduled its upcoming $1.2 billion Hong Kong IPO for April (see story). The company reportedly plans to issue 667 million H shares, representing 25% of equity. As underwriters of the offering, Shanghai Pharma has hired Credit Suisse, Deutsche Bank, Golden Sachs and CICC.
Guangdong Dahuanong Animal Health Products (DHN) (SHE: 300186), a veterinary products company with a bird flu vaccine, completed its IPO on the ChiNext exchange (see story). DHN placed 67 million shares to raise $228.4 million, reflecting a price/earnings ratio of 51. The company's shares rose a modest 2% in the aftermarket.
Simcere Pharma (NYSE: SCR) filed an IND with the SFDA to start a Phase I trial of a novel monoclonal antibody intended to treat various forms of solid-tumor cancer (see story). The mAb, known as APX003, was discovered by Apexigen of California. Simcere collaborated with Apexigen on the IND-enabling studies and owns China rights to the molecule. To advance its own development program, Apexigen has licensed China rights for three of its molecules to three China companies and collaborated with them on pre-clinical development.
Bristol-Myers Squibb (NYSE: BMY) announced a strategic partnership with WuXi PharmaTech (NYSE: WX) that will conduct stability studies of new small-molecule drugs from BMS’s global operations (see story). WuXi will build and operate a dedicated facility in Shanghai for the operation.
Fenwal, a US headquartered company, and Golden Meditech Holdings (HK: 801; TW: 910801) of Hong Kong have arrived at definitive terms for their medical device JV (see story). The JV will manufacture and market products and technologies for blood collection, storage and transfusion in China. Fenwal will own 51% of the venture, with the remaining 49% belonging to Golden Meditech.
Regulatory Affairs
The National Development and Reform Commission (NDRC) has once again mandated price decreases for drugs, effective March 28, 2011 (see story). The average reduction in this round is 21% for a group of 162 medicines, mainly antibiotics and cardiovascular drugs. The bullish case for drug sales in China now has to contend with a major negative factor: increasing price controls.
Earnings Reports
WuXi PharmaTech (NYSE: WX) today announced a solid 24% growth in revenues during 2010, and the company guided investors to expect a further 20% increase in its top-line for 2011 (see story). During 2010, WuXi’s sales totaled $334.1 million. The company predicts they’ll reach around $400 million in 2011, a steady progression from an enterprise that, at the moment, is not providing surprises.
Disclosure: none.
Guangdong Dahuanong Animal Health Products (DHN) (SHE: 300186), a veterinary products company with a bird flu vaccine, completed its IPO on the ChiNext exchange (see story). DHN placed 67 million shares to raise $228.4 million, reflecting a price/earnings ratio of 51. The company's shares rose a modest 2% in the aftermarket.
Simcere Pharma (NYSE: SCR) filed an IND with the SFDA to start a Phase I trial of a novel monoclonal antibody intended to treat various forms of solid-tumor cancer (see story). The mAb, known as APX003, was discovered by Apexigen of California. Simcere collaborated with Apexigen on the IND-enabling studies and owns China rights to the molecule. To advance its own development program, Apexigen has licensed China rights for three of its molecules to three China companies and collaborated with them on pre-clinical development.
Bristol-Myers Squibb (NYSE: BMY) announced a strategic partnership with WuXi PharmaTech (NYSE: WX) that will conduct stability studies of new small-molecule drugs from BMS’s global operations (see story). WuXi will build and operate a dedicated facility in Shanghai for the operation.
Fenwal, a US headquartered company, and Golden Meditech Holdings (HK: 801; TW: 910801) of Hong Kong have arrived at definitive terms for their medical device JV (see story). The JV will manufacture and market products and technologies for blood collection, storage and transfusion in China. Fenwal will own 51% of the venture, with the remaining 49% belonging to Golden Meditech.
Regulatory Affairs
The National Development and Reform Commission (NDRC) has once again mandated price decreases for drugs, effective March 28, 2011 (see story). The average reduction in this round is 21% for a group of 162 medicines, mainly antibiotics and cardiovascular drugs. The bullish case for drug sales in China now has to contend with a major negative factor: increasing price controls.
Earnings Reports
WuXi PharmaTech (NYSE: WX) today announced a solid 24% growth in revenues during 2010, and the company guided investors to expect a further 20% increase in its top-line for 2011 (see story). During 2010, WuXi’s sales totaled $334.1 million. The company predicts they’ll reach around $400 million in 2011, a steady progression from an enterprise that, at the moment, is not providing surprises.
Disclosure: none.
ChinaBio® News
Greg Scott Interviewed at BIO-Europe Spring
How to bring your China assets to China in 8 minutes
"Mr. Bio in China."
Mendelspod Interview
Multinational pharma held to a higher standard in China
