Deals and Financings

BeiGene, a Beijing biopharma focused on developing novel targeted and immuno-oncology cancer therapies, completed a $97 million fundraising (see story). Six months ago, BeiGene announced a $75 million Series A financing. BeiGene currently has three small molecule inhibitors in Phase I trials and expects to start a trial of a novel PD-1 monoclonal antibody before the end of 2015. 

JHL Biotech, a Taiwan-China biopharma, closed a Series C round of $45.6 million (see story). The company said the funding would be the last before it stages an IPO in Taiwan. JHL also has a manufactuing facility in Wuhan, China to support China-for-China biosimilar development. With the new capital in hand, JHL says it has enough money to complete full development and BLA filing of at least two of its proprietary biosimilar drugs. 

Hutchison MediPharma, a subsidiary of Hutchison China MediTech (AIM: HCM), will receive $18 million in payments from Lilly (NYSE: LLY) during this quarter as part of Lilly's in-licensing of fruquintinib (see story). Fruquintinib is a VEGF inhibitor that has completed a Phase II trial in patients with metastatic colorectal cancer. The payments consist of a $10 million milestone for successfully completing the first fruquintinib proof-of-concept trial and $8 million to help underwrite a Phase III trial of the drug.

Harbin Gloria Pharma (SHE: 2437) in-licensed China rights to Amitiza, a novel anti-constipation drug from Sucampo Pharma (NSDQ: SCMP) of the US (see story). Amitiza is a chloride channel activator, approved for US use in 2006, which acts in the small intestine. Gloria will be responsible for obtaining CFDA approval of the drug and then commercializing it in China. Gloria paid $1 million upfront and will be liable for additional milestone payments.

Company News

WuXi PharmaTech (NYSE: WX), China's largest CRO/CMO, reported 2015 Q1 earnings grew 23% from the year earlier to $180 million, but GAAP net income was flat at $17.8 million (see story). Dr. Ge Li, WuXi's Founder, President and CEO, blamed higher labor costs in China and investments in business expansion for lower margins. In the conference call, Dr. Li added that WuXi is talking with partners about several co-development projects and also contemplating a number of acquisitions. 

SciClone Pharma (NSDQ: SCLN), a US company that distributes western drugs in China, reported first quarter revenues of $33.6 million, a $7 million (26%) increase over the year earlier (see story). Net income was $9.0 million, more than double the $4.1 million of a year earlier (GAAP). Non-GAAP net income was $9.8 million. SciClone said China's province-by-province bid system will have a negative effect on product revenues, but the company expects greater sales volume will make up the shortfall. 

Neusoft Medical Systems (SHA: 600718), the medical imaging division of China's IT giant Neusoft, launched its latest high-end CT scanner, the NeuViz 128 CT, for global markets (see story). The company will ship the machine to South Asia, North Africa and other international markets. According to Neusoft, the CE marked scanner offers super-detailed images obtained from low-dose radiation. It is the first China-developed 128-slice CT exported to international markets with independent IP rights, said Neusoft. 

Trials and Approvals

Luye Pharma (HK: 2186), a China company, completed three US clinical studies of its investigational version of risperidone, a well-known anti-psychotic drug (see story). Luye encapsulates the active ingredient in microspheres to create an extended release mechanism that requires injections only once every two weeks. Luye expects the three trials, which enrolled a total of 172 patients in the US, will be sufficient for a New Drug filing with the FDA. The drug is also undergoing trials in Europe and Japan.