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.

Pfizer CEO Albert Bourla (Evan Vucci, AP Images)

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Pfizer had at one time been extremely bullish on this drug’s mid-stage data, grabbing exclusive worldwide rights, but researchers say they took a cold, hard look at the data from their Phase IIb and found the therapy wanting on efficacy as well as safety.

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William Pao (L) and Hans Clevers

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How UCB beat 2 other bidders to land $1.9B buyout of Zogenix and its epilepsy drug

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Sriram Subramaniam, Gandeeva Therapeutics founder and CEO

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The company is on a mission to show that it can leverage cryo-EM and AI to make a meaningful impact on drug discovery, and it plans to do so with speed, using AI for experiment prediction.

Raquel Fortunato, GenIbet CEO

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Saundra Pelletier is a women’s health boss, CEO, feminist cheerleader, cancer survivor and devoted mom. She’s also a lifelong advocate for women’s health inside pharma companies and the need to get on board with changing conversations.

As CEO of Evofem Biosciences, she’s raised $491 million in financing on the way to launching its first product in 2020, Phexxi non-hormone birth control for women.

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MarketingRx roundup: Hologic goes to the Super Bowl with Mary J. Blige; Horizon bows Graves’ disease TV ad

Medical device and diagnostics company Hologic is going to the Super Bowl – with a first-ever ad in the big game. Speaking up in the 30-second ad is R&B/hip-hop musician legend Mary J. Blige, who illustrates the message that even during her busy days, she finds time to take care of her health.

Hologic’s first Super Bowl commercial, which will also air during the Winter Olympics broadcasts, is also its first-ever DTC TV ad. Digital and social ads will run through the year, with information and resources for women to stay current on screenings. Read the full story here.

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Casey Lynch (L) and Chris Lowe, Cortexyme's outgoing and interim CEOs

Troubled Alzheimer's player Cortexyme says goodbye to founding team as independent investor takes chairmanship

When Cortexyme’s leadership got on an analyst call last October to discuss the results for their lead Alzheimer’s drugs, many listeners were bewildered.

The trial had unequivocally failed: No difference in cognitive decline was seen between patients on placebo and patients on their drug. There did seem to be an effect on one subgroup that some neurologists found promising, but that was just the tentative basis for a new study, not a decisive result.

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