Deals and Financings

BeiGene (NSDQ: BGNE), a Beijing novel oncology biopharma, completed a $200 million secondary offering last week, up from its initial target of $150 million (see story). The $200 million included $15 million from selling shareholders. In February, BeiGene raised $158 million in a NASDAQ IPO, and it reported $200 million in cash at the end of the third quarter. BeiGene is currently running clinical trials on four novel cancer drug candidates, and its costs have risen as a result: the company reported a loss of $80 million in the first nine months of 2017. 

Taikang Insurance Group paid $169 million to acquire 26.4% of Harmonicare Medical Holdings (HK: 1509), a China chain of eleven women's and children's hospitals (see story). The price was set at HK$6.54 each, a 13% premium to the previous closing price of HK$5.80. Harmonicare completed a Hong Kong IPO last year at HK$7.55, but its stock price hasn't done well since then. In June of this year, it hit a low of HK$3.57, less than half the IPO price. 

Shenzhen Hepalink Pharma (SHZ: 002399) invested $36.5 million in Kymab Group, a British mAb startup that develops first-in-class candidates (see story). The investment was part of a $100 million Series C round. Founded in 2010, Kymab expects to begin clinical trials of its most advanced candidate next year. Hepalink, which started as a heparin API supplier, has been expanding its product mix through M&A. Also, in 2015, Hepalink paid $206 million to acquire a US biologics contract development/manufacturing company, Cytovance, which Kymab cited as an important addition to its working relationships. 

Beijing Tinavi Medical Technologies in-licensed China rights to spinal implants and surgical devices made by Spineway of Lyon, France (see story). Tinavi made a $1.5 million investment in Spineway for five-year exclusive distribution rights, giving them a 9% stake in Spineway. The shares also have warrants attached that would raise Tinavi's ownership in Spineway to 17% in exchange for an additional $1.7 million. Tinavi markets a robotic surgical device, Phecda™, in China that is used for trauma and spine surgeries.

WuXi Biologics, a division of CRO/CMO WuXi AppTec, signed a non-binding MOU to create a manufacturing partnership with Australia's Prima Biomed (ASX: PRR; NSDQ: PRMD) (see story). The partnership, if finalized, would develop Prima's recombinant soluble LAG-3 protein and other LAG-3 related products as oncology drugs.  WuXi Biologics is already supplying IMP321 to Prima for clinical trials, and the new agreement would make WuXi worldwide supplier of the drug, with the exception of greater China. Eddingpharm has exclusive rights to IMP321 for greater China. 

Elanix Biotech (SX: ELN) of Germany signed a non-binding LOI with Oxford MEStar, a spin-out from Oxford University, to form a China marketing JV (see story). The JV will also include Tianjin-based UniNova, an affiliate of Oxford MEStar, which was founded in 2014 with $11.6 million in private investment and support of Tianjin's municipal government. UniNova was set up to facilitate access to China's market for smaller life science companies. The JV intends to bring Elanix's GynRepair to China, though specific terms remain to be worked out. 

Trials and Approvals

Yisheng Biopharma of Beijing completed a Phase I trial of its novel PIKA hepatitis B vaccine, which both treats and prevents the disease (see story). The vaccine includes Yisheng's double-stranded RNA analog (PIKA) adjuvant that acts as a toll-like receptor 3 agonist. In 32 healthy volunteers, the vaccine was well tolerated and created immunogenicity in the subjects. Previously, the PIKA technology has been validated in several rabies vaccine trials, and earlier this month, Yisheng announced it would add the technology to an Scripps Research Institute AIDS vaccine for clinical testing. 

Disclosure: none.