Deals and Transactions
Shionogi & Co. (TO: 8053), a Japanese pharma, will pay $185 million to obtain a controlling interest in C&O Pharmaceutical Technology of China (see story). C&O Pharma, a company that produces antibiotics and other drugs for the China market, is headquartered in Hong Kong, but listed in Singapore. Shionogi said it will use the acquisition to establish a major presence in China for its own drugs.
Hebei Changshan Biochemical Pharma (SHE: 300255) hopes to raise $117.4 million in a ChiNext IPO (see story). The underwriters will seek to place 27 million shares at a price of 28 RMB each. Changshan Biochemical is a heparin maker and derives 87% of its revenues from heparin APIs.
Global Pharm Holdings (OTCBB: GPHG) paid $9 million to acquire drug distributor Shandong Hua Wei (see story). Both companies distribute drugs in Shandong province, which is the reason behind the acquisition. Global Pharm will pay for the transaction with stock. The selling shareholders pledged 10% of their shares as a guarantee of Shandong Hua Wei’s 2011 financial performance.
Zhejiang Hisun Pharma (SHA: 600267) will spend $2 million to buy a 25% stake in PharmTak, a US CRO that specializes in formulations (see story). Based in San Jose, CA, PharmTak develops new drug delivery systems offering controlled/extended release, quick release/nano particles, topical/transdermal application, and solid implants. Its services extend from pre-clinical through all stages of clinical development.
VWR International, LLC, a US-based distributor of laboratory supplies and services, announced plans to acquire LabPartner (Shanghai) Company (see story). Located in Zhangjiang Hi-Tech Park, LabPartner supports China’s biopharma labs with premium products and integrated services and a focus on chemicals. The price of the transaction was not disclosed.
Company News
Simcere Pharma (NYSE: SCR) will increase its R&D staff to 1,000 in the next three or four years, up from its present headcount of 300 (see story). The company recently announced it would build a new R&D center in Beijing's Zhongguancun Innovation Park, where it bought rights to 65,300 square meters of land. The company is headquartered in Nanjing, but Simcere said it wanted to access Beijing’s talent pool.
Innovation in China
BGI, the giant genomics institute located in Shenzhen, and GT Life Sciences of San Diego have published their collaborative study on the genomic sequence of the Chinese hamster ovary (CHO) K1 cell line in Nature Biotechnology (see story). Over 70% of the recombinant therapeutic proteins sold today are manufactured using mammalian cells, primarily CHO cell lines. GT Life Sciences uses a metabolic modeling platform to design new products and processes for the life sciences field. It says a better understanding of the genome will speed development of new recombinant protein therapies.
Big Pharma in China
Merck (NYSE: MRK) announced it will be cutting another 13,000 jobs, about 14% of its current headcount, while at the same time continuing to build its China workforce (see story). About 35%-40% of the cutbacks will be in the US. Meanwhile, Merck reported China revenues rose in Q2 by 30% to $208 million, driven mainly by its products in the infectious disease and respiratory sectors.
Source:chinabiotoday.com