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The Week in Review: BeiGene to Raise up to $150 Million This Year
publication date: Jul 9, 2011
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author/source: Richard Daverman, PhD
Deals and Financings
BeiGene, the Beijing area oncology startup, said it expects to raise between $100 million and $150 million this year from a group of up to seven biopharmas and venture capitalists (see story). In May, the company announced it received backing from Merck (NYSE: MRK), though it didn’t disclose the size of the financing. At the time, CEO John Oyler told ChinaBio® Today that the Merck financing did not prohibit BeiGene from seeking backing from other pharmas, an important provision because the company has big financing needs.
Two China biopharmas made their public company debuts on the ChiNext Exchange this week. Baotou Dongbao Bio-Tech (SHE: 300239) raised $22 million in its IPO, and Grandhope Biotech (SHE: 300238) completed a $34.6 million initial offering (see story). Both companies did exceedingly well in their first day of trading: Baotou Dongbao almost tripled in value, closing at 26.90 yuan (up from 9) and Grandhope climbed 147% to 44.91 yuan (up from 18.2).
ARC Capital Holdings (AIM: ARCH) of Hong Kong paid $13 million to acquire a minority interest in Buchang Pharmaceutical Group, a privately-owned TCM company (see story). According to a news release, Buchang is the largest TCM company in China – if the judging standard is net profit. Buchang, which was founded in 1993, includes two hospitals and a university in addition to its portfolio of six pharma entities.
MingSight Pharma of San Diego announced a new JV with Shenzhen Relin Medicine that will develop a treatment for diabetic retinopathy for use in China (see story). The JV, called Jiangsu MingSight-Relin Pharmaceutical Co., will own China rights to an innovative molecule, MS-553, that MingSight in-licensed from Pfizer (NYSE: PFE) last October. MS-553 is a first-in-class oral compound.
Mindray Medical (NYSE: MR) will acquire a controlling stake in Suzhou Hyssen Electronics Co. Ltd., a company that makes automated urine sediment analyzers (see story). Mindray expects to develop synergies by combining its own medical device technology with Hyssen’s expertise in urine sediment analysis. Mindray said it was not disclosing any financial details of the transaction because they were not material to its own results.
Government and Regulatory
As a way of keeping a lid on the cost of treatments for HIV/AIDS, China may soon institute a policy of mandatory licensing of the necessary drugs (see story). Mandatory licensing – also called a compulsory or statutory license – requires a company with a patented drug to license their patent for a specified payment. The payment may be set by law or negotiated between the government and the pharmaceutical company. China wants cheaper HIV/AIDS drugs because it is planning to expand coverage of preventive antiretroviral therapy.
The Guangzhou International Biotech Island, the first national level scientific park in South China, held its opening ceremony this week (see story). The park has already signed MOUs with 30 companies that will locate there. Biotech Island is situated on a previously underdeveloped 2 square kilometer island about 12 km from Guangzhou’s central business district.
Company News
Guangzhou Baiyunshan Pharma (SHE: 000522) expanded its production facility in Jiexi county, Guangdong province to 1.1 million square meters (see story). When fully used, the added capacity will bring in up to one billion RMB ($155 million) in additional revenues. Baiyunshan Pharma said the expansion will alleviate a capacity constraint on amoxicillin, the company's leading revenue producer.
Disclosure: none.
BeiGene, the Beijing area oncology startup, said it expects to raise between $100 million and $150 million this year from a group of up to seven biopharmas and venture capitalists (see story). In May, the company announced it received backing from Merck (NYSE: MRK), though it didn’t disclose the size of the financing. At the time, CEO John Oyler told ChinaBio® Today that the Merck financing did not prohibit BeiGene from seeking backing from other pharmas, an important provision because the company has big financing needs.
Two China biopharmas made their public company debuts on the ChiNext Exchange this week. Baotou Dongbao Bio-Tech (SHE: 300239) raised $22 million in its IPO, and Grandhope Biotech (SHE: 300238) completed a $34.6 million initial offering (see story). Both companies did exceedingly well in their first day of trading: Baotou Dongbao almost tripled in value, closing at 26.90 yuan (up from 9) and Grandhope climbed 147% to 44.91 yuan (up from 18.2).
ARC Capital Holdings (AIM: ARCH) of Hong Kong paid $13 million to acquire a minority interest in Buchang Pharmaceutical Group, a privately-owned TCM company (see story). According to a news release, Buchang is the largest TCM company in China – if the judging standard is net profit. Buchang, which was founded in 1993, includes two hospitals and a university in addition to its portfolio of six pharma entities.
MingSight Pharma of San Diego announced a new JV with Shenzhen Relin Medicine that will develop a treatment for diabetic retinopathy for use in China (see story). The JV, called Jiangsu MingSight-Relin Pharmaceutical Co., will own China rights to an innovative molecule, MS-553, that MingSight in-licensed from Pfizer (NYSE: PFE) last October. MS-553 is a first-in-class oral compound.
Mindray Medical (NYSE: MR) will acquire a controlling stake in Suzhou Hyssen Electronics Co. Ltd., a company that makes automated urine sediment analyzers (see story). Mindray expects to develop synergies by combining its own medical device technology with Hyssen’s expertise in urine sediment analysis. Mindray said it was not disclosing any financial details of the transaction because they were not material to its own results.
Government and Regulatory
As a way of keeping a lid on the cost of treatments for HIV/AIDS, China may soon institute a policy of mandatory licensing of the necessary drugs (see story). Mandatory licensing – also called a compulsory or statutory license – requires a company with a patented drug to license their patent for a specified payment. The payment may be set by law or negotiated between the government and the pharmaceutical company. China wants cheaper HIV/AIDS drugs because it is planning to expand coverage of preventive antiretroviral therapy.
The Guangzhou International Biotech Island, the first national level scientific park in South China, held its opening ceremony this week (see story). The park has already signed MOUs with 30 companies that will locate there. Biotech Island is situated on a previously underdeveloped 2 square kilometer island about 12 km from Guangzhou’s central business district.
Company News
Guangzhou Baiyunshan Pharma (SHE: 000522) expanded its production facility in Jiexi county, Guangdong province to 1.1 million square meters (see story). When fully used, the added capacity will bring in up to one billion RMB ($155 million) in additional revenues. Baiyunshan Pharma said the expansion will alleviate a capacity constraint on amoxicillin, the company's leading revenue producer.
Disclosure: none.
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