Week In Review: WuXi's SynTheAll Subsidiary Raises $80 Million

Deals and Financings

WuXi PharmaTech (NYSE: WX), a China-US CRO/CMO, announced its SynTheAll Pharma subsidiary, a small-molecule manufacturing company will raise $80 million through a private placement of 6% of its shares (see story). The financing values SynTheAll at $1.3 billion. In April 2015, WuXi completed a listing of the subsidiary on China's Third Board, a two-year old electronic OTC exchange. WuXi, which pointed out that STA does not include WuXi's biologic drug manufacturing operations, continues to hold an 89% stake in STA, worth about $1.16 billion. 

Mindray Medical (NYSE: MR), a China medical device maker, will pay $72.6 million to acquire the remaining part of Wuhan Dragonbio Surgical Implant Co. it does not already own (see story). In 2012, Mindray bought a controlling stake in Dragonbio for $35.5 million. Dragonbio, which specializes in trauma, spine, joint implant and fixation orthopedic products, reported revenues of only $7.7 million in 2011. Although Mindray is currently considering a $3.5 billion privatization offer from its management, the company seems to remain interested in M&A.

Oramed Pharma (NSDQ: ORMP) of Jerusalem signed a LOI to complete a $50 million deal for China rights to its clinical-stage oral insulin with Sinopharm Capital Management and Hefei Life Science & Technology Park Investments and Development (see story). During the previous week, Oramed announced a similar deal (though not identical) with Wuzhou Zhongheng Group (SHA: 600252), an agreement that apparently fell apart. Sinopharm/Hefei paid $500,000 for 60 days of exclusive talks with Oramed, while final terms of the agreement are negotiated. 

Benitec Biopharma (ASX: BLT; OTCPK: BTEBD) of Australia will pay $4.5 million to buy out its China JV partner, Biomics Biotech (see story). The acquisition gives Benitec full control of Hepbarna™, a pre-clinical ddRNAi-based hepatitis B therapy that the JV was developing. Both companies focus on developing RNAi therapeutics. Benitec will pay $1.9 million upfront and another $2.6 million plus a single digit royalty if Hepbarna is commercialized. 

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Disclosure: ChinaBio® has a business relationship with WuXi PharmaTech.

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