Deals and Financings

WuXi AppTec, China’s largest CRO/CMO, secured a five-year $1.5 billion line of credit from Ping An Bank, a subsidiary of the China insurance company (see story). Details of the agreement were not disclosed, but the agreement apparently includes some form of partnership. The primary goal seems to be healthcare, centered on six major cities including Shanghai. Ping An is no stranger to WuXi: it was one of the investors in WuXi’s $3.3 billion privatization last year. Reports recently surfaced that WuXi in planning to IPO its biologics R&D and manufacturing businesses in a Hong Kong IPO that values the division at $1.5 billion. 

Shanghai Fosun Pharma (SHA: 600196; HK: 02196) is once again raising capital, this time through a $471 million issue of China bonds (see story). The deal-happy company is always is need of cash because it spends freely on M&A transactions. One year ago, Fosun raised $935 million in a private placement of shares, a move that sent its shares 17% higher. The reaction to the latest news was a more muted low-single-digits rise. 

China Medical System Holdings (HK: 0867) agreed to pay $500 million for two established AstraZeneca (NYSE: AZN) cardiovascular drugs (see story). The agreement includes $310 million to in-license China rights for Plendil, a hypertension drug of the calcium channel blocker class, and another $190 million for global rights (ex-US) for Imdur, an anti-angina nitrate drug. CMS markets prescription drugs in China. 

Gloria Pharma (SHZ: 2437) of Harbin, China will invest $40 million in Proteus Digital Health, a US company with a remote patient monitoring device (see story). As a sweetener for the investment, Gloria will have an exclusive 18-month option to form a China JV with Proteus. Proteus expects to raise a total of $110 million in its current H funding round. Gloria will purchase $25 million of Proteus’ preferred stock, and will invest another $15 million through Shanghai Sailing Boda Equity Investment Fund Partnership.