Deals and Financings

BioAtla LLC, a San Diego-Beijing biotech, entered a complicated deal with Pfizer (NYSE: PFE) that could be worth more than $1 billion to BioAtla (see story). The agreement combines BioAtla's Conditionally Active Biologic (CAB) antibodies with Pfizer's proprietary antibody drug conjugate (ADC) payloads. In addition, Pfizer has an exclusive option to develop and market BioAtla CAB antibodies that target CTLA4, an immuno-oncology target. Each company will pay the other milestones and royalties if it develops and markets a CAB-ADC antibody candidate from the partnership. BioAtla's $1 billion payout, which includes Pfizer's rights to the CTLA4 antibodies, is a combination of up-front, regulatory and sales milestone payments plus tiered royalties on potential revenues. 

Jiangsu Hansoh Pharmaceutical plans to stage a $1.5 billion IPO in Hong Kong during the first half of 2016 (see story). However, the transaction remains in its early planning stages: the company will review pitches from investment bankers next week. The news was reported by IFR, a Thomson Reuters publication. Hansoh, founded in 1995, sells its APIs globally and also makes finished drugs. 

Pharmaron, a Beijing-US CRO, announced a very large fundraising of more than $280 million led by China investors CITIC M&A Fund and Legend Capital (see story). The company said it would use the money to invest in cutting edge technologies for growth, and it will also repay some of its early investors. Pharmaron did not disclose any specific details. Pharmaron operates a Beijing lab and also has facilities in Louisville, KY and Los Angeles. 

Akeso Biopharma of Zhongshan out-licensed global rights for an immuno-oncology antibody to Merck (NYSE: MRK) (known as MSD outside of the United States and Canada) (see story). Merck paid an unspecified upfront payment and agreed to a package of up to $200 million in development and commercialization milestones. AK-107 is an immune checkpoint blocking antibody discovered by Akeso. Further details were not disclosed. 

Hutchison China MediTech (AIM: HCM) raised $105 million by selling land-use rights held by a JV subsidiary to the Shanghai government (see story). The subsidiary, Shanghai Hutchison Pharmaceuticals Holding, is a 50-50 joint venture formed two years ago with Sinopharm (HK: 1099), one of China's major drug distributors. In return for the cash, SHPL surrendered the remaining 36 years of land-use rights on its factory in the Putuo District of Shanghai. Last year, the JV began construction of a new $100 million factory, with three times the capacity, further from Shanghai's city center. 

ASLAN Pharma of Singapore raised $34 million in a Series C round (see story). The company said the financing would pay for ten clinical trials of its four novel drugs. The funding was led by Accuron Technologies Limited, a wholly-owned subsidiary of Temasek Holdings, the sovereign wealth fund of Singapore. The latest funding doubles ASLAN's previous rounds, bringing total capital raised to $68 million. 

Shanghai's Luqa Pharma acquired greater China rights from Laboratoires Genevrier for Viticell®, an innovative single-use kit that treats vitiligo (see story). Vitiligo produces de-pigmented white patches on the skin. The condition, which is not contagious or life-threatening, cannot be cured, but it can be treated. In June, Luqa raised $15 million to advance its portfolio from Morningside Ventures. 

Luye Medical Group will pay $688 million to acquire Healthe Care Australia, a chain of 17 Australian hospitals with over 1800 beds, from Archer Capital (see story). Luye Medical is affiliated with Luye Group, the parent company, and Luye Pharma Group (HK: 2186), a Hong Kong listed pharmaceutical company. After the acquisition, Luye Medical, with an established hospital operation in Australia, will provide a platform to expand into China, both with privately owned hospitals and public-private partnerships. 

Trials and Approvals

BeiGene, a Beijing novel oncology drug company, reported early positive data from a Phase I trial of BGB-3111, a BTK inhibitor being tested in patients with advanced B cell malignancies (see story). In preliminary results, BGB-3111 seemed well tolerated and showed single-agent activity in a range of B cell malignancy subtypes (an overall response rate of 93% in chronic lymphocytic leukemia, for example). The results were presented at the recent ASH annual meeting. 

Beijing's Sinovac Biotech (NSDQ: SVA) was granted CFDA approval to begin clinical trials of its Sabin Inactivated Polio Vaccine (sIPV) candidate (see story). China, like most countries, wants to eliminate the use of oral polio vaccines, because they sometimes (though rarely) cause the disease. Sinovac licensed the vaccine from Intravac (Institute for Translational Vaccinology) of the Netherlands. The sIPV is in short supply globally and represents a potential export opportunity for Sinovac. 

Company News

WuXi PharmaTech has split in two its clinical-stage China CRO joint venture with PRA Health Sciences of North Carolina (see story). WuXi will take over control of the CRO's China operations, bringing them entirely in-house, and PRA will own the Hong Kong business. The two companies joined forces in 2013. PRA, a global CRO, added its China-based staff and global technology capabilities, including data capture, trial management and other IT systems. The current "restructuring," as it is being called, came at the request of WuXi. 

Disclosure: none.