Deals and Financings

WuXi PharmaTech (NYSE: WX) sold a 5.55% stake in SynTheAll Pharma, its chemical drug contract manufacturing subsidiary, to management of STA and WuXi for $28 million (see story). The company also received permission to list STA shares on the New Third Board OTC exchange starting April 3. The owners of the STA shares may sell one-third of their shares on the exchange over the next year, establishing a price for STA. WuXi will not list additional shares at this time, but it has the flexibility to do so later, probably after STA migrates to Shenzhen's GEM exchange. 

Sihuan Pharma (HK: 0460) formed a long-term partnership with Covance Labs, a global US-headquartered CRO, under which Covance will provide Sihuan with expertise to coordinate international and China filings of novel drugs in its development portfolio (see story). Covance said its standardized global systems will promote a more efficient pathway for Sihuan, allowing the company to bring its products to multiple markets more quickly. 

Merck Animal Health, a division of Merck (MSD) (NYSE: MRK), signed an MOU with China Animal Husbandry Industry (SHA: 600195) to share scientific and commercial expertise with an explicit goal of  exploring China "animal health vaccine opportunities" (see story), China Animal Husbandry makes biological products (vaccines), feed additives and veterinary drugs. More than 40% of its revenues came from vaccines, and another 32% from its trading business. Financial details were not disclosed. 

Helsinn, a Swiss pharma focused on supportive cancer care, out-licensed China marketing and distribution rights for a appetite-enhancing drug to Mundipharma, a UK company (see story). The drug, anamorelin, is a novel oral ghrelin receptor agonist currently completing clinical trials as a treatment for cancer anorexia-cachexia in patients suffering from non-small cell lung cancer. Mundipharma will have exclusive rights to anamorelin in China, Hong Kong and Macao, while Helsinn will retain rights elsewhere and be responsible for China approval. 

Solasia Pharma, a Japanese company that in-licenses western oncology products, acquired China-Japan rights to episil® oral liquid, a novel treatment for oral mucositis, from Camurus AB of Sweden (see story). Camurus used its lipid phase nanostructure technology to develop episil, a liquid that forms a bioadhesive film to protect mucosa tissue. Solasia will pay a signing fee and development milestones. 

Trials and Approvals

Luye Pharma (HK: 2186), a China R&D-based company, has completed three China Phase I trials of a novel anti-depressant (LY03005), a serotonin-norepinephrine-dopamine triple reuptake inhibitor (see story). The molecule, ansofaxine hydrochloride extended release tablets, passed all three tests. Luye, which holds IP for the drug, is concurrently developing LY03005 for China and the US markets, with a Phase I trial underway in the US. 

Shanghai's Hutchison MediPharma, the drug discovery arm of Chi-Med (AIM: HCM), reported that fruquintinib met its primary endpoint -- progression-free survival -- in a China trial conducted among heavily pre-treated patients with metastatic colorectal cancer (see story). Two years ago, the company out-licensed China rights for the drug to Lilly (NYSE: LLY) in an $87 million deal. MediPharma is continuing to assess data from secondary endpoints, though it said all the results appear to be in-line with expectations. 

Berry Genomics of Beijing received premarket clearance from the CFDA for the use of an Illumina (NSDQ: ILMN) NextSeq CN500 high-throughput sequencing machine and a Berry-developed non-invasive prenatal test for birth defects (see story). The company's $500 test, which is based on circulating maternal blood serum, offers women with high-risk pregnancies greater safety than the invasive procedure. Berry said its NIPT kits have rates above 99% for both sensitivity and specificity. 

Company News

Pfizer (NYSE: PFE) has closed down all of its China vaccine operations after its only approved vaccine in China, Prevenar, did not obtain its China license renewal (see story). The reason behind the renewal failure is a mystery: Pfizer did not say if China regulators found a problem with the vaccine or if they simply did not process Pfizer's application. Prevenar, a pneumococcal vaccine approved for children under the age of two, is the only product available in China for this indication. The abrupt closing means 200 Pfizer employees in China will lose their jobs.