Deals and Financings
3SBio (HK:1530) of Shenyang acquired Zhejiang Wansheng Pharma, a small molecule drugmaker, for $85 million (see story). Wansheng is approved to market 55 products in the areas of oncology, diabetes, cardiovascular and dermatology. It also has 13 GMP production lines. The transaction is priced at 20 times Wansheng's earnings and slightly less than two times sales. According to 3SBio, which is known mainly as a biologics company, the acquisition provides a manufacturing facility for 3SBio's 12 small-molecule pipeline drugs and adds depth to its portfolio of nephrology and oncology offerings.
Ally Bridge Group, a Hong Kong-US investment firm, opened a new fund that invests in listed China life science companies, including those on both the mainland and the Hong Kong exchanges (see story). The fund, called the Ally Bridge LB healthcare Fund, began operations on July 15, according to a Bloomberg report. It is described as a hedge fund, implying the fund intends to sell short overvalued companies while buying shares in attractively priced entities. Frank Yu, the founder and CEO of Ally Bridge, did not disclose how much money was raised for the fund.
Shenzhen Hepalink Pharma (SHE: 002399) has closed its acquisition of greater China rights to a clinical stage cardiovascular drug from Resverlogix (TO: RVX) of Calgary, Canada (see story). RVX-208 is a small-molecule BET bromodomain inhibitor that reduces atherosclerotic plaque. To secure the rights, Hepalink purchased $27.4 million of Resverlogix stock and warrants, giving it a 12.6% stake in the company. Hepalink also agreed to pay Resverlogix a 6% royalty plus sales milestones.
Phagelux, a Shanghai company that is developing phage-based anti-bacterial products, has acquired OmniLytics, Inc. of Salt Lake City, Utah (see story). OmniLytics is also focused on phages, with several products for agricultural pathogens marketed under the AgriPhage brand. Presumably, Phagelux will bring the OmniLytic products to China, while OmniLytic will market Phagelux's products in the US. Phagelux is developing phage products for human and agricultural use.
