Deals and Financings

3SBio, a China biopharma based in Shenyang, announced it will seek to raise up to $712 million in its Hong Kong IPO, scheduled for early June (see story). The transaction values 3SBio at up to $2.85 billion. That is seven times the company's value when it was taken private from the NASDAQ exchange in the US two years ago. CITIC Private Equity, which helped to fund the privatization, will offer 20% of the offered shares ($176 million), while the rest will be issued by 3SBio.

Mudanjiang Youbo Pharma agreed to be acquired by Jiuzhitang Co. (SHZ: 000989) in exchange for $1 billion of Jiuzhitang's stock (see story). Both companies offer TCM products. The transaction is a reverse takeover with Youbo the surviving company. Zhenguo Li, the manager of Youbo, will purchase an additional 83.5 million shares of Jiuzhitang for $242 million, representing 14% of the new company. Combined with the shares from his Youbo stake, he will have a controlling 42% stake in the combined company. 

SciClone Pharma (NSDQ: SCLN) in-licensed greater China rights to Vibativ® (telavancin), an antibiotic developed by Theravance Biopharma (NSDQ: TBPH) in exchange for a package of $6 million in upfront and milestone payments (see story). Both companies are based in the US, though SciClone's marketing operations are focused on China. SciClone will initially seek CFDA approval of Vibativ for hospital-acquired bacterial pneumonia and ventilator-associated bacterial pneumonia.

Government and Regulatory

China's CFDA has sharply raised the fees it charges to review drugs and medical devices, a cost that drug companies are willing to pay if it means the agency will hire more reviewers and speed up the review process (see story). The fee for a domestic innovative drug is now set at $100,637, a considerable jump from the $5,650 charged in 2013. At the end of 2014, the CFDA admitted that, despite numerous promises to shorten review times, the number of drugs awaiting approval had climbed to 18,500, up one-third over the year. 

Trials and Approvals

Cellular Biomedicine Group (NSDQ: CBMG), a China-California cell therapy company, reported positive data from a small trial of its Chimeric Antigen Receptor (CAR-T) immunotherapy for CD30-positive Hodgkin's lymphoma (see story). In a heavily pretreated group of patients, five of seven participants responded to the treatment. Earlier this year, CBMG formed a partnership with the Chinese PLA 301 General Hospital of Beijing to develop the technology, which was discovered by the 301 Hospital. 

Company News

Quintiles (NYSE: Q), the international clinical-stage CRO, staged an official opening ceremony of its Greater China Regional Headquarters in Shanghai's Feng Lin Science Park (see story). The 43,000 square foot facility will house 300 employees, with room for an eventual 450. The company said its China operation was set up to help domestic companies bring their products to international markets and to help multinationals expand in China. 

Disclosure: none.