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The Week in Review: Tigermed and Shuangcheng Pharma Complete IPOs
Deals and Financings
Hangzhou Tigermed Consulting (SHE: 300347), a clinical-stage CRO, staged its IPO on Shenzhen’s ChiNext exchange (see story). The IPO, which constitutes 25% of the company’s outstanding stock, placed 13.40 million shares at a price of 37.88 RMB, a price/earnings ratio of 44. The transaction raised $80 million for the company. Tigermed ended its initial trading day at 50 RMB, an increase of 32% for the IPO investors. At that price, the company has a market capitalization of $420 million.
Hainan Shuangcheng Pharma (SHE: 002693) debuted on the Shenzhen exchange last week, raising $94 million in its IPO offering (see story). Founded in 2000, Hainan Shuangcheng Pharma is a high-tech enterprise specializing in chemosynthetic polypeptide medicines. The offering was priced at 20 RMB, and the company’s shares have moved up to 25.2 RMB in open market trading, a price/earnings ratio of 32.
Two China medical research organizations will work with the National University of Ireland Galway to develop new biomaterials (see story). Initially, the focus of the research will be polymers that preferentially deliver chemotherapies to tumors. Earlier this week, a memorandum of understanding was signed between Irish/NUI Galway officials and their counterparts from the Tianjin International Academy of Biotechnology and Medicine (TJAB), and China Nucleon Medical Technology Group, a CRO that provides medical imaging for clinical trials in China.
Cipla (BSE: 500087), an Indian generic drug maker, pulled $72 million out of its 49% investment in China’s Desano Holdings, and then put between $20 million and $25 million into each of three Desano subsidiaries in which Cipla is already invested (see story). The companies focus on biosimilars, API and finished drugs. The goal of the narrowed focus is to become more vertically integrated.
Medtronic (NYSE: MDT), the global medical device maker, is in M&A talks with several China companies, a move that is designed to build a bigger presence in China’s expanding medical device market (see story). Medtronic has apparently rejected the path of organic growth that its international medical device competitors are following in China. Not surprisingly, the names of Medtronic’s potential partners were not disclosed.
Continuing its string of strong earnings reports, WuXi PharmaTech (NYSE: WX), China's largest CRO/CMO, announced record results for Q2 (see story). In fact, the second quarter was the first time its China revenues exceeded $100 million in a single three-month period. In total, the company’s Q2 revenues climbed 29% to $130 million. For historical reference, that was more than four times its results from five years ago, at the time WuXi completed its 2007 IPO. Because the first half of the year was so strong, WuXi raised its 2012 guidance to just under $500 million.
Trials and Approvals
3SBio (NSDQ: SSRX) filed an Investigational New Drug (IND) application with the SFDA to begin clinical trials of a monoclonal antibody drug candidate discovered by Apexigen of San Francisco (see story). The molecule, SSS07 (also known as APX001), will be tested as a treatment for autoimmune and inflammatory diseases. 3SBio completed the development work on the China filing and owns China rights to the drug.
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May 29-30, 2013
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June 18-19, 2013