Deals and Financings

Ping An Insurance (Group) plans to carve out its Ping An Healthcare and Technology (also known as Ping An Good Doctor APP) and IPO in Hong Kong for $1 billion at a valuation of $5 billion (see story). The company plans to go public in the middle of May. In May 2016, Ping An Healthcare and Technology raised $500 million in a Series A. In December 2017, the company raised $400 million from Softbank Union in a pre-IPO round.  

A new China-focused venture fund, Panacea Venture Healthcare Fund I, LP, filed to raise $150 million (see story). The fund is led by two China managing partners of Kleiner Perkins Caufield & Byers (KPCB), James Huang and Hai Mi. An earlier report said the fund, which expects to make seven investments, plans to be an incubator for early-stage companies, though it would aim for quick exits through M&A or IPOs.  

DXY, the online academic portal for doctors and other life science professionals, raised $100 million in a Series D funding from undisclosed investors (see story). According to China Money Network, the funding was conducted at a $1 billion-plus valuation, conferring Unicorn status on DXY. The eighteen-year-old site provides China doctors with up-to-date clinical and research information, as well as information about conferences, jobs and other services. DXY is also China's largest e-marketing platform for life science companies. It features academic discussions, medical information, job opportunities and medical news. 

Biocytogen of Beijing closed a $65 million series C funding to support its CRO operations (see story). Founded in 2009, the company provides gene engineered animal models, preclinical animal studies and other services that include large-scale animal model supply. It also offers preclinical animal studies using gene humanized models, PDX models and reconstructed human immune system models. Biocytogen works with well-known academic institutions in the US and China, as well as biopharmas' R&D departments.  

New World Development (HK: 0017), a Hong Kong conglomerate, acquired a 4.29% stake in New Century Healthcare (HK: 1518), a China pediatric and OB-GYN medical services provider (see story). The stake, which was acquired from another investor, is worth $30 million. According to the companies, they intend to extend their holdings in pediatric/OB-GYN medical services, adding new hospitals and clinics through internal development and acquisitions. They also plan to add new technologies that will provide remote diagnosis and treatments for greater efficiency and productivity.  

AK Medical Holdings (HK: 1789), a Beijing orthopedic implant maker, paid $24 million to acquire JRI Orthopedics of the UK (see story). Both companies make joint replacements. AK is the first company to obtain CFDA approval for its 3D-printed joint and spine implants in China. Three years ago, AK Medical began distributing JRI's products in China, while JRI has more recently begun manufacturing AK Medical products for use in western countries. AK Medical plans to increase JRI's manufacturing capacity in the UK.  

Morphotek, a US subsidiary of Japan's Eisai (TYO: 4523), granted Bliss Biopharmaceutical (Hangzhou) exclusive rights to use its eribulin-linker payload to develop a therapeutic antibody drug conjugate against an undisclosed oncology target for the China market (see story). The eribulin-linker payload consists of a cytotoxic agent, eribulin, modified by a chemical linker to facilitate conjugation. The announcement did not disclose specific financial details, but the agreement is comprised of an upfront payment, milestones and sales royalties. BlissBio has an exclusive option to extend the product to the global market and to develop ADCs for two other oncology targets.  

Trials and Approvals

MabSpace Biosciences of Suzhou has dosed the first patient in a US Phase I trial of MSB2311, its second generation PD-L1 treatment for advanced solid tumors (see story). It is the first MabSpace molecule to begin clinical trials. In China, MSB2311 is in the late stages of the CFDA review process, and MabSpace expects it will start a China Phase I trial soon. Using its proprietary platform MabSpace provides discovery services to other biopharmas and is also developing its own portfolio of six immuno-oncology antibodies, which are designed to work in combination with MSB2311.  

CANbridge Life Sciences of Beijing was granted China approval of an IND to start a Phase II/III trial of its lead candidate, CAN008, in patients with glioblastoma multiforme (GBM) (see story). The approval was based on a small (10 patient) Phase I trial of CAN008 in Taiwan, an example of China-Taiwan regulatory cooperation. In the Taiwan trial, CAN008 did not show any safety problems. CAN008 is a TNF-blocker that is thought to restore the immune system's anti-tumor response. Two years ago, CANbridge in-licensed greater China rights to CAN008 from Germany's Apogenix.  

BeiGene (NSDQ: BGNE) announced the initiation of a multi-center Phase II clinical trial of tislelizumab, an anti-PD-1 antibody, in patients with previously treated advanced hepatocellular carcinoma (HCC or liver cancer) (see story). The company plans to enroll 225 patients in the Phase II trial at 75 cancer centers in Greater China (including Taiwan), US and EU. Celgene, which signed a $1.4 billion deal for ex-Asia rights to the PD-1 candidate last year, will co-develop the drug with BeiGene in ex-Asia markets. BeiGene is now testing tislelizumab in three global Phase III trials.  

Disclosure: none.