Deals and Financings

China's Tasly Pharma (SHA: 600535) formed a partnership with Pharnext SA (Paris: ALPHA), a French company that combines and repositions approved drugs to develop innovative therapies (see story). The agreement has three parts: Tasly will invest $22 million in Pharnext; the two companies will form a JV to develop new drugs using Pharnext's platform; and Tasly acquired China rights to Pharnext's lead drug candidate, a treatment for Charcot-Marie-Tooth disease type 1A. Tasly will contribute its knowledge of traditional Chinese medicines to the combination drug development JV.

Shanghai Fosun Pharma (SHA: 600196; HK: 2196) will invest $15 million in Partners Innovation Fund II, a fund that will invest in medical research products originating from Partners Healthcare System of Boston (see story). Partners Healthcare includes three major Boston-area teaching hospitals that are associated with Harvard University: Massachusetts General Hospital, Brigham and Women’s Hospital and McLean Hospital. Fosun said it was interested in PIFII as an investment, but also for potential acquisitions and China rights to promising products.

Innovative Cellular Therapeutics, a Shanghai biotech developing CAR-T cell therapies, in-licensed greater China rights to four cell therapy products from Boston's Vericel (NSDQ: VCEL) (see story). The portfolio consists of two knee treatments, artificial skin to treat severe burns and a heart repair product. ICT will pay $6 million upfront and agreed to another $8 million in milestones, plus royalties. ICT, which will be responsible for the registration of all the products, will receive warrants for $5 million of Vericel stock at current prices. 

Medtronic (NYSE: MDT), a major US medical device company, signed an option to acquire the Chocolate® PTA Balloon Catheter from Singapore's QT Vascular (SGX: 510) for $28 million (see story). Medtronic plans to exercise the option when the product achieves specific milestones, which were not disclosed. In February, Medtronic agreed to a five-year agreement to distribute the Chocolate® PTA Balloon Catheter in the US and Europe, where it is already approved for use. The device is designed for coronary angioplasty procedures.

Japan's Otsuka Pharma signed a $865 million deal to add non-US rights (including China) for a late-stage anemia drug from Boston's Akebia Therapeutics (see story). Late in 2016, Otsuka entered a $1 billion agreement for US rights to vadadustat, an oral hypoxia-inducible factor stabilizer. The latest deal adds rights in Europe, China, Russia, Canada, Australia and the Middle East. Akebia will receive $73 million upfront and up to $792 million in development funding and milestone payments for the non-US rights. 

Theraclion (Alternext: FR0010120402) of France formed a China joint venture with Inner Mongolia Furui Medical Science (SHZ: 300049) to market Theraclion's HIFU surgery device (see story). The Echopulse® is a non-invasive medical device employing ultrasound-guided high-intensity focused ultrasound (HIFU) to treat non-cancerous tumors -- breast fibroadenoma and benign thyroid nodules -- in an out-patient procedure. The JV, which will be based in Shenzhen, will be 56% owned by Theraclion China. Furui will own the rest. 

Aslan Pharma (TT: 6497) of Singapore released the schedule for its upcoming Taipei Exchange IPO (see story). The company plans to raise at least $27.5 million in two stages: it will first conduct a three-day auction of 10.4 million shares, starting Wednesday May 10, and then publicly offer an additional 2.6 million shares for public subscription, starting May 18. The minimum price will be $2.11 per share (all prices are in US dollars). Aslan will begin trading on the Taipei exchange in June. Previously, Aslan has said it would offer 10% of its total outstanding shares in the IPO. 

Disclosure: none.