Week In Review: Hua Medicine Approved For $200 Million Hong Kong IPO

Hua Medicine, a Beijing biopharma, announced its IPO application was accepted by the Hong Kong exchange (see story). According to rumors, the company hopes to raise $200 million in the offering. Hua, a company testing a treatment for type 2 diabetes, is the second pre-revenue China biopharma accepted to IPO in Hong Kong under new exchange rules. In fact, Hua's prospectus revealed it lost $50 million in Q1 of 2018, more than the $44 million it lost in all of 2017.

China Resources Pharma (HK: 3320) will pay $667 million to acquire all the outstanding shares of Jiangzhong Pharma (SHA: 600750, a listed company (see story). Three weeks ago, CR Pharma announced plans to acquire a stake in the parent company, Jiangzhong Group, for $613 million, which will, when added to its current holdings, give CR Pharma majority control of Jiangzhong Group. Jiangzhong Group, the parent, owns a 43% stake in Jiangzhong Pharma. All together, CR Pharma will pay nearly $1.3 billion for a controlling stake in the parent and about 80% ownership of the listed subsidiary.

CStone Pharma of Suzhou signed a $386 million agreement for rights to three drug candidates discovered by Blueprint Medicines (Nasdaq: BPMC) of Cambridge, Mass. (see story). CStone will have exclusive Greater China rights to the three Blueprint clinical-stage oral oncology medicines, each targeting genomically defined conditions. CStone paid $40 million upfront for the candidates, and it will make payments totaling up to $118.5 million for clinical milestones and $227.5 million for sales levels, plus royalties. Last month, the company raised $260 million in a B round to support its 13 immunocology candidates.

Quantum Surgical, a French company building new minimally invasive surgical tools for cancer, completed an initial investment from Ally Bridge Group, a China-centered healthcare investor (see story). Quantum said the investment is the first part of a $50 million Series A round. The company is developing a robotic platform to improve physicians' ability to assess, plan and treat a broad spectrum of medical conditions, especially early-stage cancer. Lifetech Scientific (HK: 1302), a China medical device company, also participated in the investment through its JV with ABG and will collaborate with Quantum Surgical in the China market.

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