Sinocare (SHZ: 300298), a diabetes company based in Changsha, may bid as much as $4 billion to acquire Johnson & Johnson's (NYSE: JNJ) diabetes medical device subsidiaries (see story). With falling revenues, some of J&J's diabetes-focused companies are exiting from the US market because they can no longer compete and revenues are falling. Sinocare is backed by China Jianyin Investment (JIC), a unit of sovereign wealth fund China Investment Corp, according to sources cited by Reuters, who also said Sinocare has hired an advisor to work on a bid.  

China’s Ping An Insurance Group (SHA: 601318; HK: 2318) raised nearly $1 billion in a pre-IPO round for Ping An Healthcare Management, an open platform for healthcare services such as medical treatment, social health insurance (SHI) and drug distribution (see story). The funding values the business at $8.8 billion. Ping An Healthcare Management plans a Hong Kong IPO later in 2018. It will follow an IPO, also in Hong Kong, for Ping An Good Doctor, a mobile site that provides diagnosis and schedules doctor visits. Reuters, which released the news, said PingAn did not confirm the reports.  

BeiGene (Nasdaq: BGNE), a Beijing innovative cancer biotech, raised a spectacular $750 million in a secondary offering of its shares (see story). The price of the shares ended the session 13% higher after the funding was announced, closing the day at $115.56. BeiGene now has a market capitalization of $4.8 billion -- before the new shares are issued. In 2016, BeiGene staged a $158 million IPO on the Nasdaq exchange, pricing at $24 per share. To date, the company has raised almost $1 billion, including the IPO, a $200 million secondary offering, and Celgene's (Nasdaq: CELG) $236 million payment plus $150 investment in BeiGene shares for ex-China rights to BeiGene's PD-1 candidate.  

Innovent Biologics of Suzhou is planning a pre-IPO round and then an IPO for $200 million in late 2018 (see story). The venue will be either aUS or Hong Kong exchange, according to Bloomberg. Innovent is developing an ambitious portfolio of biosimilar and novel biotech cancer drugs.One year ago, the company completed a $260 million D round. In 2015, Innovent struck an over-$1 billion deal with Lilly (NYSE: LLY), which includes three PD-1 candidates and up to six other biologic drugs. Innovent is expected to seek a valuation of over $1 billion in its IPO.  

BeiGene (Nasdaq: BGNE), a Beijing cancer company, in-licensed Asian rights to a clinical-stage lung cancer therapy from Mirati Therapeutics (Nasdaq: MRTX) of San Diego (see story). Sitravatinib is a spectrum-selective kinase inhibitor that has shown clinical efficacy in a Phase II trial in combination with a PD-1 checkpoint inhibitor. BeiGene, which will test sitravatinib in conjunction with its own PD-1 candidate, will pay $10 million upfront and up to $123 million in milestones.  

Ascletis, a Hangzhou company developing a oral interferon-free combination treatment for hepatitis C, is planning a $100 million C funding (see story). The company will use the money to fund clinical trials and develop a marketing operation. Previously, Ascletis raised $155 million in two rounds of venture capital, plus another $100 million in startup investment. After the C Round, Ascletis is considering an IPO in Hong Kong, the exchange of choice for young China biopharmas now that it no longer requires several years of profitable operations before listing.  

Suzhou Zelgen Biosciences completed a $62 million series B financing to support its portfolio of small molecule and biologic drug candidates (see story). Established in 2009, Zelgen is focused on cancer, hematology and auto-immune products. With the new capital, the company will advance its portfolio and prepare for commercialization of its lead product, a Phase III candidate that targets various forms of late-stage solid tumor cancers. The company also offers biologic CRO services.

Vaccitech, an Oxford University spinout that is developing a universal flu vaccine along with other vaccine products, closed a $27 million Series A financing (see story). The round was co-led by GV (formerly Google Ventures), Sequoia China, and existing backer Oxford Sciences Innovation. A clinical stage company, Vaccitech is developing six products that induce cellular immune responses using non-replicating viral vectors, either for treatment or prophylaxis, including a vaccine for prostate cancer treatment.

Adlai Nortye Biopharma (NEEQ: 870946) of Hangzhou acquired global rights to a novel immuno-oncology oral EP4 antagonist developed byJapan's Eisai Co. (see story). Eisai has reported positive results from a Phase I test of the drug in Japan, where it will retain rights. Adlai Nortye will have exclusive worldwide research, development, manufacturing and commercialization rights to E7046, excluding Japan and some other Asian countries, though it will have rights for Mainland China. Financial details of the agreement were not disclosed.

3SBio (HK: 1530) of Shenyang in-licensed China rights to a pruritis (itching) treatment developed by Japan's Toray Industries (see story). TRK-820 is a highly selective opioid receptor agonist that is intended to treat the itching that accompanies chronic liver disease and peritoneal dialysis. 3SBio will commercialize the oral disintegration formulation of the drug to facilitate dosing in patients who have difficulty swallowing. The company will make upfront and milestone payments to Toray, though no details were disclosed.

CR Pharma (HK: 3320), China's second-largest drugmaker, is negotiating with Sweden's Xbrane Biopharma for China rights to two Xbrane candidates (see story). One of the drugs is Spherotide, a generic testosterone suppressor with an extended release delivery used to treat prostate cancer. The other is Xlucane, a biosimilar to Roche's Lucentis, a treatment for wet age-related macular degeneration. According to Xbrane, it has held final negotiations for China rights to Spherotide, though an agreement has not been signed. So far, it has agreed only to a non-binding letter of intent for Xlucane, with terms still to be discussed.  

Trials and Approvals

Amarin (Nasdaq: AMRN) reported that Eddingpharm, its China partner, has started a China registrational trial of Vascepa® (icosapent ethyl), a treatment for hypertriglyceridemia (see story). Three years ago, Eddingpharma in-licensed greater China rights to the drug in a deal worth up to $169 million. Vascepa is a very pure, omega-3 fatty acid product available by prescription. In its US trial, Vascepa lowered triglycerides by 33% without causing any severe side effects.