via Hisun

Pri­vate eq­ui­ty meets Chi­na biotech: PAG in­fus­es $540M to gain con­trol of Hisun's biosim­i­lar sub­sidiary

Pri­vate eq­ui­ty firm PAG has emerged as the win­ner in a bid­ding war for Hisun Bio­Ray, the biotech unit of Chi­nese gener­ics and API mak­er Zhe­jiang Hisun Phar­ma­ceu­ti­cal.

Un­der the deal Hong Kong-based PAG is shelling out $540 mil­lion in ex­change for 58% own­er­ship of Bio­Ray — from its two R&D and man­u­fac­tur­ing cen­ters in Taizhou and Hangzhou to na­tion­wide com­mer­cial op­er­a­tions — while the moth­er com­pa­ny re­tains the oth­er 42%.

Hisun, which is state-owned, boasts of the deal as the largest pri­vate eq­ui­ty in­vest­ment in Chi­na’s biotech sec­tor to-date.

“This trans­ac­tion marks an im­por­tant mile­stone in mixed own­er­ship re­form of Chi­na’s state-owned sec­tor,” Hisun chair­man Guop­ing Jiang said in a state­ment. “By bring­ing in for­eign di­rect in­vest­ment to sup­port the de­vel­op­ment of Chi­na’s bio­phar­ma­ceu­ti­cal in­dus­try, Hisun Phar­ma­ceu­ti­cal can sharp­en its fo­cus while sup­port­ing Hisun Bio­Ray’s fu­ture de­vel­op­ment.”

Over 40 po­ten­tial in­vestors were vy­ing for a con­trol­ling share of the young com­pa­ny, he added, which was just launched this Jan­u­ary.

But with Hisun Phar­ma — a bi­o­log­ics play­er since 2003 that has seen ups (li­cens­ing pacts) and downs (FDA warn­ing let­ters) — on their back, Bio­Ray is not your av­er­age biotech fledg­ling. It cur­rent em­ploys 700 staffers and mar­kets a re­com­bi­nant hu­man TN­Fɑ fu­sion pro­tein for rheuma­toid arthri­tis, anky­los­ing spondyli­tis and pso­ri­a­sis. There are more than 10 oth­er on­col­o­gy and au­toim­mune projects in the pipeline, in­clud­ing a biosim­i­lar of Hu­mi­ra they plan to launch around the end of the year as An­jian­ning.

“PAG’s in­vest­ment will sup­port and ac­cel­er­ate the de­vel­op­ment of our pipeline and clin­i­cal tri­al progress, fur­ther strength­en our com­pet­i­tive ad­van­tage, and ex­pand our foot­print in the lat­est gen­er­a­tion of in­no­v­a­tive bi­o­log­ics and biosim­i­lars,” Bio­Ray CEO Haib­in Wang said in a state­ment.

For PAG, which has $30 bil­lion un­der man­age­ment, this marks yet an­oth­er biotech bet fol­low­ing re­cent in­vest­ments in Rongchang Phar­ma­ceu­ti­cals (al­so known as Re­ne­Gen) and Al­pham­ab On­col­o­gy.

Suin­ing Xi­ao, its part­ner and chair­man of Chi­na, will be­come chair­man of Bio­Ray.

A fa­vorite in Alex­ion’s C-suite is leav­ing, and some mighty sur­prised an­a­lysts aren’t the least bit hap­py about it

Analysts hate to lose a biotech CFO they’ve come to trust and admire — especially if they’re being blindsided by a surprise exit.

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While No­var­tis ban­ish­es Zol­gens­ma scan­dal scars — Bio­gen goes on a Spin­raza 'of­fen­sive'

While Novartis painstakingly works to mop up the stench of the data manipulation scandal associated with its expensive gene therapy for spinal muscular atrophy (SMA) Zolgensma— rival Biogen is attempting to expand the use of its SMA therapy, Spinraza. 

The US drugmaker $BIIB secured US approval for Spinraza for use in the often fatal genetic disease in 2016. The approval covered a broad range of patients with infantile-onset (most likely to develop Type 1) SMA. 

Jason Kelly. Mike Blake/Reuters via Adobe

Eye­ing big ther­a­peu­tic push, Gink­go bags $290M to build a cell pro­gram­ming em­pire

Ginkgo Bioworks is on a roll. Days after publicizing a plan to nurture new startups via partnerships with accelerators Y Combinator and Petri, the Boston biotech says it has raised another $290 million for its cell programming platform to reach further and wider.

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UP­DAT­ED: Speak­er Nan­cy Pelosi to un­veil bill for fed­er­al­ly ne­go­ti­at­ed drug prices

After months of buzz from both sides of the aisle, Speaker Nancy Pelosi will today introduce her plan to allow the federal government to negotiate prices for 250 prescription drugs, setting up a showdown with a pharmaceutical industry working overtime to prevent it.

The need to limit drug prices is a rare point of agreement between President Trump and Democrats, although the president has yet to comment on the proposal and will likely face pressure to back a more conservative option or no bill at all. Republican Senator Chuck Grassley is reportedly lobbying his fellow party members on a more modest proposal he negotiated with Democratic Senator Ron Wyden in July.

Jeff Kindler's Cen­trex­ion re­news bid to make pub­lic de­but

Jeffrey Kindler’s plan to take his biotech — which is developing a slate of non-opioid painkillers — public, is back on.

The Boston based company, led by former Pfizer $PFE chief Kindler, originally contemplated a $70 million to $80 million IPO last year— but eventually postponed that strategy. On Wednesday, the company revived its bid to make a public debut in a filing with the SEC — although no pricing details were disclosed.

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'Dis­con­nect the bas­tard­s' — one biotech's plan to break can­cer cell­s' uni­fied de­fens­es

Chemotherapy and radiotherapy are the current gladiators of cancer treatment, but they come with well-known limitations and side-effects. The emergence of immunotherapy — a ferocious new titan in oncologist’s toolbox — takes the brakes off the immune system to kill cancer cells with remarkable success in some cases, but the approach is not always effective. What makes certain forms of cancer so resilient? Scientists may have finally pieced together a tantalizing piece of the puzzle, and a new biotech is banking on a new approach to fill the gap.

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Zachary Hornby. Boundless

'A fourth rev­o­lu­tion in can­cer ther­a­pies': ARCH-backed Bound­less Bio flash­es big check, makes big­ger promis­es in de­but

It was the cellular equivalent of opening your car door and finding an active, roaring engine in the driver seat.

Scientists learned strands of DNA could occasionally appear outside of its traditional home in the nucleus in the 1970s, when they appeared as little, innocuous circles on microscopes; inexplicable but apparently innate. But not until UC San Diego’s Paul Mischel published his first study in Science in 2014 did researchers realize these circles were not only active but potentially overactive and driving some cancer tumors’ superhuman growth.

It’s fi­nal­ly over: Bio­gen, Ei­sai scrap big Alzheimer’s PhI­I­Is af­ter a pre­dictable BACE cat­a­stro­phe rais­es safe­ty fears

Months after analysts and investors called on Biogen and Eisai to scrap their BACE drug for Alzheimer’s and move on in the wake of a string of late-stage failures and rising safety fears, the partners have called it quits. And they said they were dropping the drug — elenbecestat — after the independent monitoring board raised concerns about…safety.

We don’t know exactly what researchers found in this latest catastrophe, but the companies noted in their release that investigators had determined that the drug was flunking the risk/benefit analysis.

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Mer­ck helps bankroll new part­ner Themis' game plan to fin­ish the chikun­gun­ya race and be­gin on­colyt­ic virus quest

As Themis gears up for a Phase III trial of its chikungunya vaccine, the Vienna-based biotech has closed out €40 million ($44 million) to foot the clinical and manufacturing bills.

Its heavyweight partners at Merck — which signed a pact around a mysterious “blockbuster indication” last month — jumped into the Series D, led by new investors Farallon Capital and Hadean Ventures. Adjuvant Capital also joined, as did current investors Global Health Investment Fund, aws Gruenderfonds, Omnes Capital, Ventech and Wellington Partners Life Sciences.