deals and Financings
Neusoft (SHA: 600718), a China software, medical device and internet healthcare company, raised $610 million from investors, which it will spend to increase its healthcare offerings (see story). Of the total, $440 million will be put into Neusoft Medical, a company that makes imaging equipment such as CT, MRI, X-Ray, ultrasound and PET machines. The remaining $170 million will be used to increase the internet/mobile offerings of Neusoft Xikang, Neusoft's open-source, cloud-based medical and healthcare management subsidiary.
SciClone Pharma (NSDQ: SCLN) in-licensed China marketing rights to two cardiovascular drugs from The Medicines Company (NSDQ: MDCO), a deal that includes up to $50.5 million in upfront and milestone payments (see story). SciClone is based in California, though it focuses on the China market. Over the past two years, SciClone has been actively developing its cardiovascular portfolio: in 2013, the company acquired China rights for two other CV drugs, both of which await CFDA approval.
China's Weijian Pharma Group obtained China marketing rights to an infertility treatment produced by LG Lifesciences (068870.KS) of Korea (see story). The treatment is Follitrope, an ovulation induction product, which increases follicle stimulating hormone (FSH). LG Lifesciences developed Follitrope using its own recombinant DNA methods. Headquartered in Hong Kong, Weijian offers a large portfolio of products to China's market. Terms of the agreement were not disclosed.
Industry Insights
China has made the most patent filings in the world in each of the past few years. Last year was no exception, according to a recent report from Thomson Reuters (see story). In 2013, China's patent filings rose 16.3% to more than 600,000 novel inventions. The U.S. and Japan came in second and third, closely matched with each other (though considerably behind China) at 350,000 and 320,000. Although all three countries were strong in IT sectors, China's dominance in pharmaceutical areas made the difference.
