Deals and Financings

Harbin Gloria Pharma (SHZ: 002437) and WuXi Biologics (HK: 2269) have entered an ex-China agreement for a PD-1 antibody with Arcus Biosciences of California's Bay Area in a deal worth up to $818 million (see story). The PD-1 candidate, GLS-010, is currently in a China Phase I trial. Arcus will pay $18.5 million upfront for rights to GLS-010 in North America, Europe, Japan and other unspecified territories. It will also be liable for $422.5 million in development and regulatory milestones on combinations of GLS-010 and 11 Arcus products. Commercial milestones will add another $375 million to the agreement, and Arcus will also pay royalties on sales.

Shanghai's Zai Lab has officially announced its IPO by filing an initial prospectus with the US SEC (see story). According to the prospectus, Zai will seek to stage an IPO on the Nasdaq exchange for as much as $115 million. Details of the offering are not included in the preliminary filing, though the filing specifies some operating details: Zai spent $32.1 million in R&D during 2016 and another $20.9 million during the first six months of 2017. On June 30, 2017, the company had $92.6 million in cash on hand after raising $164.5 million in equity financings over its three-year history. 

Lilly Asia Ventures (NYSE: LLY) has closed its fourth China/Asia life science-focused fund at $450 million, a hard cap, according to China Money Network (see story). This is over three times the $100 million of its previous fund, which closed in 2015. The new fund, known as LAV Biosciences Fund IV, took only two months to reach its cap, and was "significantly oversubscribed." Lilly, a company that is active in diabetes and cancer treatment, got its start in Asia/China venture capital with a $10 million investment in the BioVeda China fund in 2007, the first international VC fund dedicated to making life science investments in China. 

Shanghai Ankon Technologies raised $100 million in venture capital to market NaviCam, a swallow-able device about the size of a pill, for imaging the gastric track to diagnose stomach cancer and other gastric problems (see story). The 15-minute minimally-invasive procedure provides doctors with an inside look of a patient's gastric track. Ankon wants to expand into new markets and develop similar systems for early diagnosis of other diseases. The round included investors SBCVC, Dazhong Investment, Youshi Capital and Tongsheng Capital. 

Shenzhen Royal Asset Management (SRAM) will pay $33 million for China rights to three candidates aimed at fibrosis from Montreal's Prometic Life Sciences (TSX: PLI; OTCQX: PFSCF) (see story). SRAM will also own a 25% share in Prometic ChinaCo, a new JV that will manufacture the API for China use of the three molecules. SRAM will pay a royalty on China revenues to the JV and be responsible for China development of the in-licensed drugs, focusing initially on pulmonary and liver fibrosis. Prometic will use the $33 million for ex-China clinical trials of the three candidates. 

Antengene, a one-year-old Shanghai startup, completed a $21 million series A round, led by Qiming Venture Partners (see story). Antengene plans to in-license drugs, ranging from mid-stage development to mature brands, for China and other East Asian markets. Earlier this year, Antengene acquired China/East Asia rights to a Celgene (NSDQ: CELG) cancer candidate. Also participating in the A round were China VCs TF Capital and HG Capital, along with Tigermed Investment. Tigermed will conduct the China clinical trials of Antengene's lead drug. 

Ascletis of Hangzhou has in-licensed a third HCV treatment. Its latest acquisition is a nucleotide polymerase inhibitor from Medivir AB (NSDQ: MVRBF) of Sweden (see story). Ascletis acquired greater China rights for the antiviral, a NS5B inhibitor that has not yet started clinical trials. Ascletis' two other HCV treatments are in late-stage development, and the company hopes to market an all-oral, non-ribavirin combination HCV treatment in China soon. Ascletis made an upfront payment to Medivir and will pay milestones and royalties, though details of the agreement were not disclosed.