Deals and Financings

AstraZeneca (NYSE: AZN) announced plans to invest $800 million in China drug development over the next ten years to speed up development of its portfolio of innovative biologics and targeted medicines for China patients (see story). As part of the plan, AstraZeneca will make WuXi AppTech its designated China biologics manufacturer, though this arrangement will apparently last for only a short time. AstraZeneca secured an option to buy WuXi’s smaller biologic facility, located in WuXi City, for $100 million sometime in the next few years and will, presumably, take its biologics manufacturing back in-house. Currently, WuXi is building a larger biologics plant in Shanghai, which will begin operations in 2017. 

WuXi Healthcare closed WuXi Healthcare Ventures II, L.P. with funding of $290 million, well above the target of $200 million (see story). Following the format of its first fund, WXHVII will identify early stage investments, usually cross-border, adopting a strategy of “find in U.S. and build in China.” Several of WuXi’s investments, such as diagnostics company Foundation Medicine, have been strategic, establishing relationships with companies that later became partners with WuXi AppTec, the CRO, which was reported to have made a $50 million anchor investment in the new fund. 

WuXi Healthcare Ventures of Shanghai led a $30 million Series C financing for AltheaDx, a commercial stage pharmacogenetics diagnostics company located in San Diego (see story). AltheaDx said the round would enable outcome trials for its IDgenetix® testing portfolio and expand its commercialization. AltheaDx’s bioinformatics platform and PGx product testing portfolio are designed to identify the best drug for individual patients as well as dosing levels and possible drug-drug interactions.  

Meinian Onehealth Healthcare upped its bid for iKang Healthcare (NSDQ: KANG), a rival chain of China clinics, to $23.50 per ADS (see story). Previously, Meinian offered $22 for each iKang ADS. iKang, which made a $17.80 bid per ADS to take the company private in late summer, has responded to Meinian’s offer by proposing a poison pill that would make an outside takeover almost impossible. Its own privatization offer is now 32% below Meinian’s, and so far iKang has not raised its original offer price.