Deals and Financings

Lee's Pharm (HK: 0950) in-licensed China rights to a immune-oncological anti-PD-L1 monoclonal antibody from Sorrento Therapeutics (NSDQ: SRNE) of San Diego (see story). Although the drug candidate is in pre-clinical development, Lee's says it expects to start a China Phase I trial of STI-A1014 in 2015. Lee's made an unspecified upfront payment, and will be liable for up to $46 million in milestones plus royalties on revenues, which range from high-single to double digits. Lee's will also purchase $3.6 million in Sorrento's stock at a "substantial" premium to the current market price.

Alliance Boots has received China regulatory permission to acquire a 12% stake in Nanjing Pharmaceutical (SHA: 600713), paying $91 million for newly issued shares of Nanjing Pharma (see story). The company does not, however, intend to stop here: Boots has announced it will use M&A to attain its goal of becoming the largest pharmaceutical distributor in China. Boots describes itself as a pharmacy-led retail health and beauty company that is also involved in drug wholesaling and distribution. 

Sihuan Pharmaceutical (HK: 460) signed a collaborative development agreement to develop a treatment for Ebola with the Institute of Microbiology and Epidemiology of China's Academy of Military Medical Sciences (AMMS) (see story). The Institute discovered jk-0. Although the drug has been approved for military use, no clinical trials of jk-05 have been completed. Sihuan will pay a technology transfer fee of $1.6 million for rights to jk-05.  

ContraFect Corporation (NSDQ: CRFX), a New York biotech, and China's National Institute for Viral Disease Control and Prevention, China CDC (IVDC) formed a collaboration to advance ContraFect's universal treatment for flu (see story). CF-404, currently in pre-clinical development, is comprised of three fully human monoclonal antibodies. In animal models, using a low dose, it provided protection against all human strains of flu, including pandemic strains. The IVDC will conduct tests of CF-404 on China flu strains. Financial details were not disclosed.  

Hony Capital, the private equity arm of Beijing-based computer maker Lenovo, invested in Shanghai Yangsi Hospital, a private hospital in Shanghai (see story). Financial details of the transaction were not disclosed. According to China Money Network, Hony may be building a chain of hospitals across China, using M&A to create a recognized brand with standardized care in each hospital. The Hony transaction is only the most recent example of a trend: China's institutional investors are acquiring hospital assets. 

Disclosure: none