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The Week in Review: Northeast Pharma of China to Raise $370 Million
publication date: Jun 11, 2011
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author/source: Richard Daverman, PhD
Deals and Transactions
Northeast Pharma (SHA: 000597) of China filed for a 2.4 billion RMB ($370 million) private placement (see story). The company plans to offer 150 million shares at a minimum price of 16.2 RMB. The date for the offering has been set at June 21. Earlier, the company has said it expects to build a $278 million production facility for vitamin C.
China Medical System Holdings (HK: 0867), a China drug distributor, bought a 51% stake in Guangming Pharmaceutical, giving it control of the company’s protein hydrolysate products in China (see story). In addition, Guangming Pharmaceutical makes nine other products that are included in China’s basic drug list. The financial details of the transaction were not disclosed.
Harbor BioSciences (OTCBB: HRBR) of the US has signed an umbrella agreement with the China Institute of Pharmaceutical Industry (CIPI), a Sinopharm subsidiary, to distribute generic drugs outside China (see story). The non-exclusive deal does not cover any specific drugs. Sub-licenses will be negotiated separately for one or more CIPI drugs at a time, with Harbor receiving a royalty on sales.
Selected Value Therapeutics will acquire the China rights to a cancer drug being developed by US-based EntreMed (NSDQ: ENMD) (see story). The drug, ENMD-2076, has announced efficacy in a Phase II trial conducted among ovarian cancer patients with platinum-drug resistance, a notoriously difficult population without many treatment options. Selected Value, a virtual company, has strong China ties, though it seems to be headquartered in the US.
Industry Insights
Do we know how much innovation exists in China’s drug R&D sector? To get some data on the matter, the journal Nature recently published an article that counted the number of INDs and NDAs approved by the SFDA in recent years (see story). Their answer? During the eight years from 2003-10, the SFDA allowed an average of about 25 innovative drugs each year to begin clinical trials (INDs), and it approved for marketing about four new drugs per year (NDAs).
Academic Affiliations
BGI, the world’s largest genome sequencing institute formerly known as the Beijing Genomics Institute, has set up a partnership with the University of California, Davis (see story). The two institutions will conduct large-scale genome sequencing and functional genomics programs, targeting the areas of food security, human and animal health and wellness, and biodiversity and environmental health. The new entity will be known as BGI@ UC Davis Partnership. UC Davis is located about 70 miles northeast of San Francisco.
Trials and Approvals
Agenix (ASX: AGX) released a long-lead schedule for China approval of its new treatment for hepatitis B, AGX-1009. If everything goes according to plan, the company will apply in Q2 of 2012 to begin clinical trials of the drug (see story). The trials themselves could start as early as late 2012. Agenix is developing the drug in partnership with the Institute of Medicinal Biotechnology (IMB), located in Beijing, a division of the Chinese Academy of Medical Sciences.
Foci Pharmaceutical Co. of China is applying for European authorization to sell its Chinese angelica product in Europe (see story). In 2004, the EU told herbal medication companies that, unless they register their products by April 2011, they must withdraw the products from the European marketplace. To date, no China TCM company has succeeded in attaining EU approval for their product(s). But Foci is convinced it has found a pathway to comply with European regulations.
Company News
Simcere Pharma (NYSE: SCR) will receive a settlement of 50 million RMB ($7.7 million) from certain former shareholders and directors of Jiangsu Quanyi Biological Technology Stock Co. (see story). In May 2009, Simcere paid 195.5 million RMB ($28.8 million) to buy a 37.5% stake in Jiangsu Quanyi. The plant was shut down in December 2009 when quality control problems were found in its rabies vaccine. It has not reopened.
Disclosure: none.
Northeast Pharma (SHA: 000597) of China filed for a 2.4 billion RMB ($370 million) private placement (see story). The company plans to offer 150 million shares at a minimum price of 16.2 RMB. The date for the offering has been set at June 21. Earlier, the company has said it expects to build a $278 million production facility for vitamin C.
China Medical System Holdings (HK: 0867), a China drug distributor, bought a 51% stake in Guangming Pharmaceutical, giving it control of the company’s protein hydrolysate products in China (see story). In addition, Guangming Pharmaceutical makes nine other products that are included in China’s basic drug list. The financial details of the transaction were not disclosed.
Harbor BioSciences (OTCBB: HRBR) of the US has signed an umbrella agreement with the China Institute of Pharmaceutical Industry (CIPI), a Sinopharm subsidiary, to distribute generic drugs outside China (see story). The non-exclusive deal does not cover any specific drugs. Sub-licenses will be negotiated separately for one or more CIPI drugs at a time, with Harbor receiving a royalty on sales.
Selected Value Therapeutics will acquire the China rights to a cancer drug being developed by US-based EntreMed (NSDQ: ENMD) (see story). The drug, ENMD-2076, has announced efficacy in a Phase II trial conducted among ovarian cancer patients with platinum-drug resistance, a notoriously difficult population without many treatment options. Selected Value, a virtual company, has strong China ties, though it seems to be headquartered in the US.
Industry Insights
Do we know how much innovation exists in China’s drug R&D sector? To get some data on the matter, the journal Nature recently published an article that counted the number of INDs and NDAs approved by the SFDA in recent years (see story). Their answer? During the eight years from 2003-10, the SFDA allowed an average of about 25 innovative drugs each year to begin clinical trials (INDs), and it approved for marketing about four new drugs per year (NDAs).
Academic Affiliations
BGI, the world’s largest genome sequencing institute formerly known as the Beijing Genomics Institute, has set up a partnership with the University of California, Davis (see story). The two institutions will conduct large-scale genome sequencing and functional genomics programs, targeting the areas of food security, human and animal health and wellness, and biodiversity and environmental health. The new entity will be known as BGI@ UC Davis Partnership. UC Davis is located about 70 miles northeast of San Francisco.
Trials and Approvals
Agenix (ASX: AGX) released a long-lead schedule for China approval of its new treatment for hepatitis B, AGX-1009. If everything goes according to plan, the company will apply in Q2 of 2012 to begin clinical trials of the drug (see story). The trials themselves could start as early as late 2012. Agenix is developing the drug in partnership with the Institute of Medicinal Biotechnology (IMB), located in Beijing, a division of the Chinese Academy of Medical Sciences.
Foci Pharmaceutical Co. of China is applying for European authorization to sell its Chinese angelica product in Europe (see story). In 2004, the EU told herbal medication companies that, unless they register their products by April 2011, they must withdraw the products from the European marketplace. To date, no China TCM company has succeeded in attaining EU approval for their product(s). But Foci is convinced it has found a pathway to comply with European regulations.
Company News
Simcere Pharma (NYSE: SCR) will receive a settlement of 50 million RMB ($7.7 million) from certain former shareholders and directors of Jiangsu Quanyi Biological Technology Stock Co. (see story). In May 2009, Simcere paid 195.5 million RMB ($28.8 million) to buy a 37.5% stake in Jiangsu Quanyi. The plant was shut down in December 2009 when quality control problems were found in its rabies vaccine. It has not reopened.
Disclosure: none.
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