Deals and Financings

Temasek, the sovereign wealth fund of Singapore, invested $800 million in Verily Life Sciences LLC of San Francisco (see story). Verily is the former health sciences division of Google's R&D operations, now spun out into a separate company. For its $800 million, Temasek will own an unspecified minority stake in Verily. Verily aims to improve human health. So far, it has been involved in big data research and innovative medical products, especially those that provide real-time, continuous monitoring. Verily said Temasek brings valuable insight into foreign markets, especially in Asian countries. 

WuXi Biologics, the biologics arm of CRO/CMO WuXi AppTec, filed to conduct its much-anticipated IPO on the Hong Kong Exchange (see story). Trouble is, all the information about the transaction itself is redacted: there is no target for money raised, number of shares offered or timetable. Even the word "IPO" is carefully edited out of the document, leaving REDACTED in its place. Knowledgeable observers expect the IPO to take place in Q2, raise $300 million and value WuXi Biologics at $1.5 billion. 

Sanpower Group enlisted China's CITIC Bank, a state-owned investor, to raise $2.9 billion for a healthcare M&A fund, which will fund Sanpower's healthcare acquisitions (see story). Already, Sanpower has committed $1.6 billion -- more than half the total -- to two big-dollar purchases: $820 million for prostate cancer immunotherapy company Dandreon and $781 million to purchase 65% of China Cord Blood (NYSE: CO). Sanpower already owns several China hospitals, and in 2014, it paid $70 million to acquire Natali, an Israeli home healthcare company. 

Beijing Mabworks Biotech, a gene engineering mAb company, raised $39 million for a Series B round, led by Shenzhen GTJA Investment Group (see story). GTJA is a healthcare focused investment firm. Founded in 2003, Mabworks is working on ZMapp, an Ebola treatment developed by San Diego's MAPP Biopharma. It also is developing two clinical stage drug candidates:  MIL60, a biosimilar to Genentech's Avastin, and MIL62, a proposed treatment for chronic lymphocytic leukemia. 

Guangzhou Wondfo Biotech (SHZ: 300482) participated in a $35 million Series D funding of Atlas Genetics of the UK (see story). Both companies make molecular diagnostic tests. The announcement did not include any hint that Wondfo would acquire China rights to Atlas's tests or platform technology, though an agreement may follow later. Wondfo is an established Chinese IVD company, with a market capitalization of $1.5 billion. It makes a broad range of diagnostic assays including several POC tests.  

Suzhou Connect Biopharma raised a total of $25 million in two tranches: $20 million in a Series A round led by Qiming, and slightly earlier, $5 million in a pre-A financing (see story). Founded in 2012, Connect is developing several G-protein coupled receptor antagonists to treat autoimmune diseases and cancer. Its lead molecule, CBP-307, has completed a Phase I trial in Australia as a treatment for inflammatory bowel disease (IBD). Connect discovers its own candidates and also in-licenses other projects. It conducts early development in-house and uses CROs for later work. 

Aslan Pharma (TPEX: 6497) of Singapore was approved to list on Taiwan's Taipei Stock Exchange, Taiwan's main board (see story). Before being admitted to TPEX, a company must first be listed for six months on Taiwan's OTC market, sometimes known as the GreTai exchange. Aslan has met that requirement, and it will, presumably, at some point conduct a public fundraising event, though the company has not yet disclosed its plans. Founded in 2010, Aslan raised $23 million in pre-IPO venture capital last July, bringing its total VC funding to more than $100 million. 

China’s Shandong Yaohua Medical Instrument in-licensed exclusive Greater China rights to  the LuViva® Advanced Cervical Scan from Guided Therapeutics (OTCQB: GTHP) (see story). Guided is an Atlanta-based maker of rapid tests based on its patented biophotonic technology. In addition to an earlier payment of $50,000, Shandong Yaohua will pay a $1 million license fee and buy a minimum of ten LuViva® Advanced Cervical Scan devices in 2017, plus pay royalties for disposables. In return, Guided will issue $1 million in common stock to Yaohua. Yaohua will manufacture the device for itself and for Guided's global use. 

Jiangsu Nhwa Pharma, a Xuzhou pharma with CNS and cardiovascular offerings, in-licensed China rights to a clinical stage oxygen treatment from NuvOx Pharma of Tuscon, Arizona (see story). NVX-408 is designed as an emergency treatment to improve survival in people suffering from severe blood loss, either from accident or surgery. According to the company, NVX-408 does not cause allergic reactions. The financial terms of the agreement were not disclosed. 

Trials and Approvals

BeiGene (NSDQ: BGNE) started a global Phase III trial of its lead molecule, BGB-3111, a Bruton's tyrosine kinase (BTK) inhibitor (see story). The candidate will be administered to patients with Waldenström’s macroglobulinemia. WM is a rare disease, though ultimately BeiGene will seek approval of BGB-3111 for other forms of lymphoma. In the trial, BeiGene's candidate will be compared to Imbruvica, an already approved drug. BeiGene believes BGB-3111 will prove to have a better side effect profile than Imbruvica because it is more selective. In earlier trials, BGB-3111 demonstrated an overall response rate of 94%, including a major response rate of 78%, at a median follow-up time of 9.6 months. 

Neovia Oncology of Seattle enrolled its first patient in a Phase I trial of NEV-80, a novel, multi-inhibitor drug aimed at increasing immunotherapy response in patients with advanced drug-resistant cancers (see story). Neovia is a JV owned by Seattle's ANU and PUMC Pharma of Beijing. Founded in 1995, PUMC discovered NEV-80. The company works with the Peking Union Medical College (PUMC), the Chinese Ministry of Health and international partners to develop innovative drug products. 

Government and Regulatory

China instituted a "Two-Invoice" system for drug distribution to public hospitals, which is expected to drive retail drug prices lower (see story). Under the policy, each drug is allowed only two invoices: one from the manufacturer to the distribution company, and a second from the distribution company to the hospital. The policy will increase pressure to roll-up distribution networks by eliminating middle operators, a long-standing goal of China's healthcare reforms. At first, the two-invoice policy will apply only to Pilot Program hospitals, but it will become effective across China by 2018.