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Week in Review: BGI Raises $320 Million for Diagnostics Division

publication date: Jun 14, 2014
 | 
author/source: Richard Daverman, PhD

Deals and Financings

BGI, the China genomics sequencing company, raised $320 million for its subsidiary BGI Shenzhen, a division that provides prenatal DNA testing services (see story). The funding placed a 20% stake in the company in the hands of several (unnamed) institutional investors and values BGI Shenzhen at $1.6 billion. Earlier this year, without any explanation, China put a halt to the use of any prenatal test that had not been approved by the government, a move that may have put BGI Shenzhen into a financial squeeze. Previously, no approval was needed for the non-invasive tests. 

Shanghai Fosun Pharma (SHE: 600196; HK: 02196) is planning to acquire a number of Israeli medical device companies, and has already begun due diligence on several, according to the company’s CEO, Fang Yao (see story) The news comes one year after Fosun paid $240 million to acquire Alma Lasers, an Israeli company that makes high-end wrinkle-smoothing devices. Fosun may incorporate all of its acquired Israeli operations under Alma, said Yao.

The Jackson Laboratory (JAX), a large non-profit US research center, and Wuhan Frasergen Bioinformatics signed a Memorandum of Understanding to build a research facility at Wuhan BioLake (see story). The new lab will focus on the genetics of cancer. Researchers will study tumors donated by Chinese patients, characterize them, and create a library to support research by academic and corporate scientists. JAX’s severely immune-compromised mouse will be used as a host for growing and expanding the tumors. 

RuiYi, a San Diego-Shanghai innovative drug discovery company, formed a research collaboration with iHuman Institute at ShanghaiTech University (see story). The collaboration will use RuiYi's iCAPS technology to create novel monoclonal antibodies. Ray Stevens, PhD, a structural biologist at San Diego’s Scripps Institute, is the Founding Director of the iHuman Institute and the Scientific Founder of RuiYi. In addition, RuiYi announced that it closed a $4 million debt financing from Silicon Valley Bank. 

US device maker Milestone Scientific (OTCQB: MLSS) announced a joint venture to distribute medical and dental devices to China and other Asian markets (see story). The JV’s initial focus will be Milestone’s STA Wand® Computer Controlled Anesthesia System, a nearly-painless device for administering anesthesia to dental patients. The JV will be 40% owned by Milestone and 60% by healthcare executives from China. It will be headquartered in Hong Kong. 

Shuwen Biotech, a Hangzhou company that in-licenses diagnostic tests and markets them in China, announced an agreement with DiagnoCure (TSX: CUR; OTCQX: DGCRF) of Canada to commercialize the latter company’s Previstage™ GCC colorectal cancer staging test in greater China (see story). Shuwen will be responsible for obtaining CFDA approval of the device. It will also manufacture the IVD kit and market it to China hospitals. In addition, Shuwen will offer Previstage testing service from its own clinical reference lab. 

Industry Insights

At the end of last month’s ChinaBio® Partnering Conference, Steve Yang, the newly hired Chief Operating Officer of Wuxi PharmaTech, reflected on the progress of China’s innovative drug development (see story). As an undergraduate 25 years ago in China, Dr. Yang had to hand-wash pipette tips – disposable pipettes weren’t available. Now, at WuXi, he can envision the company’s entire R&D platform on the cloud, available anywhere around the globe with world-class standards, easy transparency and complete security, a service as simple as ordering a book from Amazon. 

Trials and Approvals

Omron Healthcare (TO: 6645), a Japanese medical device maker, and NeuroMetrix (NSDQ: NURO) of Massachusetts filed for China approval of NeuroMetrix’ NC-stat® DPNCheck®, a point-of-care testing device for diabetic peripheral neuropathy (see story). Omron, which is NeuroMetrix’ marketing partner for China and Asia, is a global supplier of health monitoring electronic devices such as wearable blood pressure monitors. The two companies completed a similar filing in Japan earlier this year.

Waters Corporation (NYSE: WAT), a US maker of lab equipment, received CFDA approval for its ACQUITY UPLC TQD system, a medical device for routine diagnostic applications and neonatal metabolites disease screening (see story). It is the second Waters mass spectrometry device approved for use in China. In 2008, the CFDA approved a neonatal screening product that included the Waters Quattro micro™ mass spectrometer. 

CRO/CMO News

ScinoPharm Taiwan (TW: 1789), an API company, will supply clinical-trial amounts of API for Burixafor, a novel stem cell mobilizer discovered by TaiGen Biotech (TW: 4157). ScinoPharm will make the API at its Changshu, China facility (see story). Both companies are based in Taiwan. The drug candidate will be tested for use in hematopoietic stem cell transplantation, chemotherapy sensitization and other diseases.

Disclosure: none.


 

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