Deals and Financings

Vivo Capital, a US-China healthcare investment firm, closed a new private equity fund at an oversubscribed $635 million (see story). The Vivo Opportunity Fund will invest in US and China small to mid-cap public life sciences companies with novel products in development. Vivo raised $750 million for its previous PE fund in 2015, and it closed a $100 million venture capital fund in 2016. The firm, which has offices in Palo Alto, Beijing, Shanghai and Taipei, now has $2.2 billion in total funds under management.

Xynomic Pharmaceuticals, a US-China clinical-stage oncology company, will be merged into Bison Capital Acquisition (NSDQ: BCAC) in a reverse merger that values Xynomic at $450 million (see story). Initially, Xynomic shareholders will receive $350 million in Bison shares, with another $100 million available if the company meets specified milestones. The company said a NASDAQ listing will improve its access to capital. In its two-year history, Xynomic has in-licensed two novel oral small-molecule cancer treatment candidates. Bison, a special purpose vehicle, will change its name to Xynomic Pharmaceuticals Holding. 

Hua Medicine (HK: 2552) of Beijing raised $110 million in a Hong Kong IPO at a valuation of $1.1 billion, the second pre-revenue China biopharma to list on the exchange (see story). The offering was expected to bring in $200 million, but market sentiment has become  cautious. The IPO priced at the low end of the range, initially moved lower in its first trading session, and then climbed back to the offering price by the close. Hua will complete clinical trials of its lead drug candidate, dorzagliatin, a GKA activator for type 2 diabetes, in 2019.

111, Inc. (NSDQ: YI), a new retail online/online pharmacy, has completed a US IPO on the NASDAQ exchange, raising $100 million at a $1.1 billion market capitalization (see story). Initially, 111 was seeking to raise as much as $150 million, but market considerations led the underwriters to lower the size of the offering. Founded in 2010, 111 includes 1 Drugstore, an online pharmacy that it claims is China's largest; 1 Clinic, which provides online consultations; and 1 Drug Mall, a B2B cloud-computing/big data/supply chain for pharmacies to manage inventory.  

Tianjin Tasly Pharma (SHA: 600535) out-licensed US marketing rights for compound Danshen dripping pills, a TCM for angina, to Arbor Pharma (see story). Arbor will pay up to $23 million upfront to underwrite the US Phase III trial of Danshen. Ultimately, if Danshen is approved, Arbor will pay $50 million for Danshen rights plus 50% of its gross profit from the drug to Tasly's US subsidiary. Tasly pointed out that Danshen is the first TCM to ever complete a US Phase III trial, though results are not published.  

Zai Lab (NSDQ: ZLAB) acquired greater China rights to Novocure's (NSDQ: NVCR) Optune, paying $15 million upfront (see story). Optune is a therapy that uses electric fields, called Tumor Treating Fields, that are tuned to specific frequencies to treat cancer. The fields disrupt cell division, inhibiting tumor growth. The treatment is approved to treat brain cancer. In addition to the upfront payment, Zai will also make development, regulatory and commercial milestone payments, plus royalties. Zai will help Novocure by accelerating patient enrollment for new indications.  

Cadrock Pty Ltd, of Australia has raised $5 million in seed financing from an unnamed China investor to support clinical trials of an investigational triple-antibiotic as a treatment for coronary artery disease (CAD) (see story). The theory that CAD is caused by bacterial infection has not been proven, though a British study showed a 36% reduction in Major Cardiac Events following a course of antibiotics. The therapy was developed by Thomas Borody, MD, PhD, who previously developed a triple antibiotic treatment for peptic ulcers.

Shanghai Pharmaceuticals (SHA: 601607) has signed a Memorandum of Understanding with BIOCAD, Russia's largest biotech company, to form JVs that manufacture and develop BIOCAD's biologic drugs for the China market (see story). BIOCAD plans to include at least six of its novel biologics and biosimilar drugs for cancer and immunology in the agreements. One of the JVs will include a mAb manufacturing facility. BIOCAD says it has signed export contracts worth over $850 million in the last few years, supplying its biologic medications to 14 countries.

Trials and Approvals 

Shanghai's CARsgen has presented positive early clinical data of a first-in-class CAR-Claudin18.2 T cell trial in patients with pancreatic and gastric cancer (see story). Among a six patient cohort, five showed an objective response and one a complete response. The six patients were treated via an optimized administration. All together, 12 patients were treated in the Phase I trial; eight were observed to show tumor regression. CARsgen has five CAR-T treatments in clinical trials.

Innovent Biologics of Suzhou announced that China's NMPA has approved an IND application for its anti-CD47 mAb (see story). Innovent plans to start clinical trials of IBI188 in multiple tumor types, including non-Hodgkin's lymphoma and ovarian cancer. The company said the IND approval is its fourth so far this year, including CTLA-4, RANKL, OX40 and CD47 mAbs. Innovent has filed for a Hong Kong IPO that could raise up to $500 million.

Shanghai's EpimAb Biotherapeutics filed US and China INDs simultaneously for a bispecific antibody that targets EGFR and cMET receptors (see story). The company expects to test EMB01, its most advanced candidate, in patients with solid tumors. Founded three years ago, EpimAb uses its proprietary FIT-Ig^® (Fabs-In-Tandem Immunoglobulin) technology to generate bispecific molecules. It said EMB01 produced significant and long-lasting activity in several preclinical models of solid tumors.

Disclosure: none.