Deals and Financings

China's e-commerce giant Alibaba (NYSE: BABA) will transfer Ali JK Nutritional products into its online healthcare subsidiary, Alibaba Health (HK: 0241), in exchange for $1.4 billion of Ali Health stock (see story). Ali JK Nutritional sells medical devices, health-care products, adult products, and health-care services on Alibaba's Tmall platform. During the 12 months ending March 31, Ali JK generated $3.2 billion in sales from over 3,300 related merchants. The transaction will increase Alibaba's stake in Ali Health from 48% to 56%.  

JHL Biotech, a China-Taiwan biosimilar company, placed $106 million in convertible bonds in a financing led by VMS Investment Group, a Hong Kong PE firm (see story). The round was joined by existing shareholders. JHL will allocate its new capital to support clinical trials and further development of its biosimilar portfolio. Earlier this year, JHL completed a voluntary de-listing of its Taiwan shares, a transaction that allowed shareholders to retain ownership of their holdings. The company is expected to conduct a $250 million IPO in Hong Kong later this year.  

HitGen, a Chengdu drug discovery/development company, closed a $39 million Series B financing led by CDH, a Beijing VC/PE firm, and Leadyond Capital, a PE firm also based in Beijing (see story). So far, HitGen has established over 50 active drug discovery collaborations with pharmaceutical companies based on its DNA-encoded library, which consists of 900 individual libraries and over 200 billion novel small molecules. The company plans to use the proceeds to expand its drug discovery technology platform and accelerate the R&D of its in-house therapeutic development programs.  

Xynomic Pharma, a Delaware-Shanghai oncology drug development company, completed a Series B crossover financing, led by China healthcare investors (see story). Xynomic has announced several in-licensings over the last few years, including a $502 million deal to acquire global rights to a 2nd-generation RAF inhibitor from Boehringer Ingelheim, along with another agreement for its lead drug, Abexinostat. The B round was led by China's Northern Light Venture Capital, Zhongshan Bison Healthcare Investment and Hakim Unique Internet Company. 

Zai Lab (NSDQ: ZLAB) of Shanghai acquired global rights to a topical biologic treatment for inflammatory conditions developed by Crescendo Biologics (Cambridge, UK) (see story). Zai Lab will have rights to develop, commercialize and manufacture the innovative antibody V_H domain therapeutic, focusing initially on psoriasis. Crescendo received an upfront cash payment and will be eligible for development, regulatory, and commercial milestones for multiple indications, plus royalties. Zai expects to file an IND for the therapeutic candidate to begin clinical trials in psoriasis in 2019.  

Luye Pharma (HK: 2186), a Yantai biopharma, will collaborate with Boston's Elpis Biopharm to discover and develop dual-target CAR-T drug candidates for next generation immunoncology treatments (see story). Elpis will use its proprietary antibody discovery platforms to generate candidates for targets specified by the two groups. The most advanced candidate is in the IND enabling pre-clinical study stage. Luye will be responsible for China development and commercialization of all candidates resulting from the collaboration.  

vTv Therapeutics (NSDQ: VTVT) of North Carolina out-licensed China and Pacific Rim rights for a clinical-stage treatment aimed at inflammatory conditions to China's Newsoara Biopharma (see story). HPP737, a PDE4 Inhibitor, is expected to treat COPD and other inflammatory diseases. Newsoara will make an upfront payment along with development and commercialization milestones, plus royalties on sales. Based on Phase I trials, vTV believes HPP737 will be better tolerated than currently available PDE4 inhibitors.

Shuwen Biotech of Deqing will partner with Bliss Biopharma, a one-year-old Hangzhou company, to develop companion diagnostics for BlissBio’s oncology drug candidates (see story). Shuwen will also provide testing services in its CAP-certified central labs for BlissBio clinical trials. Two months ago, BlissBio in-licensed exclusive rights to an antibody drug conjugate technology for a cancer target from Morphotek, a US subsidiary of Japan's Eisai (TYO: 4523). http://www.chinabiotoday.com/articles/Shuwen-BlissBio-Collaboration

Link Health Group of Guangzhou in-licensed China rights to Lidoderm®, a lidocaine patch product aimed at pain associated with post-herpetic neuralgia (see story). Teikoku Pharma of San Jose, California, a subsidiary of Japan's Teikoku Seiyaku, developed the product. Link will have China rights to develop, market and distribute Lidoderm, which is described as TPU’s flagship offering, a combination of lidocaine and a soft hydrogel plaster. Lidoderm in approved in the US and EU under the name Versatis®.  

Trials and Approvals

Legend Biotech of Nanjing, a GenScript Biotech (HK: 1548) subsidiary, reported FDA approval of a US Phase Ib/II trial for its CAR-T therapy in patients with relapsed or refractory multiple myeloma (see story). One year ago, Legend stunned the ASCO cancer convention with a very positive 94% response rate from a China trial of the CAR-T candidate. In December 2017, Janssen paid Legend a record $350 million upfront for a global partnership to develop the immunotherapy. Janssen and Legend plan to begin enrollment of the US trial in the second half of 2018. http://www.chinabiotoday.com/articles/Legend-Janssen-CAR-T-US-Trial

Disclosure: none.

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