Healthcare & Life Sciences News & Trends: Aug Week 1

1. Business Moves

i. CR Sanjiu Acquires a 28% Stake in Tasly

CR Sanjiu acquired a 28% stake in Tasly for approximately ¥6.2 billion, making it the actual controller of Tasly. Following this acquisition, eight of the top 10 TCM companies by market value will be under state control. CR Sanjiu aims to enhance its presence across the entire traditional Chinese medicine (TCM) value chain and strengthen its core competitiveness through this acquisition. Tasly’s innovative TCM product pipeline and research capabilities are expected to complement its strategic goals.

Takeaway: It is worth noting that this is not the first time CR Sanjiu has taken control of a publicly listed pharmaceutical company, demonstrating its strong expansion momentum in the TCM industry. Since 2008, CR Sanjiu has completed more than 15 external acquisitions.

This acquisition reflects a broader trend where state-owned enterprises (SOEs) are increasingly acquiring stakes in private TCM companies. Meanwhile, these SOEs’ aggressive acquisition strategies are part of a broader policy-driven initiative to support the TCM industry, backed by the 2020-2022 State-Owned Enterprise Reform Plan and other national policies encouraging TCM development.

This SOE involvement is driving the industry forward by injecting new vitality and serving as a stabilising force for private TCM companies facing financial difficulties. As SOEs continue to deepen their presence in the TCM industry, there is reason to believe that the future of China’s TCM sector will see even more robust and innovative development.

Read the full Chinese analysis of CR Sanjiu’s acquisition of Tasly.

ii. Merck Boosts Lung Cancer Strategy with Daiichi Deal

Merck & Co. has quickly leveraged its acquisition of Harpoon Therapeutics by entering into a $170 million co-development deal with Daiichi Sankyo. This agreement allows Daiichi to share the development costs and future profits of MK-6070, a promising tri-specific T-cell engager targeting small cell lung cancer (SCLC). This deal reverses the roles from a prior partnership, where Merck paid Daiichi $4 billion for antibody-drug conjugates.

Takeaway: This strategic collaboration highlights Merck’s focused efforts to address the unmet needs in SCLC, where its previous attempts with Keytruda fell short.

Read the full article about Merck’s co-development deal with Daichii.

iii. Kyowa Kirin Pivots Towards Biologics Manufacturing

Kyowa Kirin, a Japanese pharmaceutical company, is undergoing significant restructuring to pivot towards antibody technologies and gene therapy. This involves reducing small molecule drug discovery and scaling down operations, particularly in chemistry and quality control, leading to a voluntary early retirement programme in Japan.

The company is also divesting specific Asia Pacific (APAC) operations, and has sold its Chinese operations for $105 million to WinHealth Pharma, which includes five established brands and commercial rights to two key drugs, Crysvita and Poteligeo, in China.

Takeaway: The move reflects Kyowa Kirin’s shift towards focusing on more profitable and sustainable ventures while investing heavily in biologics manufacturing, including a new $530 million plant in North Carolina.

inRead the full article about Kyowa Kirin’s restructuring.

iv. Pfizer to Upgrade Australian Manufacturing Plant

Pfizer announced a significant investment of AU$150 million to build a new manufacturing facility at its Melbourne site. The site will focus on combating antimicrobial resistance (AMR), a growing global health threat. This new facility will be equipped with advanced technology, including robotics and AI, making it one of Australia’s most sophisticated plants for producing antimicrobial treatments. The expansion is set to begin commercial operations by 2026.

Read the full article about Pfizer’s investment in its Australian plant.

2. People: Rho, Takeda and Ogilvy Health

Rho: Rho, a full-service contract research organisation (CRO), appointed Dr Andrew Feigin as its new Chief Medical Officer. Feign is a neurologist expert specialising in movement disorders like Parkinson’s disease. His record success in drug development and experience in clinical trials is expected to significantly enhance Rho’s efforts in advancing next-generation therapies for its clients and improving patient outcomes. Feign was formerly a co-executive director at NYU Langone Health’s Fresco Institute and had also served at North Shore University Hospital.

Takeda: Takeda appointed Pallavi Garg as the new head of its US oncology business unit. Garg, who will succeed Stefanie Granado, has over a decade of experience in the US market. The company is now looking to fill Garg’s previous position as SVP, head of global oncology products and pipeline strategy, which she held for two and a half years.

Ogilvy Health: Ogilvy Health promoted Shannon Walsh to the newly created role of Chief Operating Officer (COO) for North America. Walsh, a long-time veteran at Ogilvy since 2004, will oversee agency operations, marketing, communications, and innovation across North America. She will continue to lead the PR, influence, and social business units while driving the company’s growth and excellence.

Read the full article about Rho’s CMO from NYU Langone.

Read the full article about Garg’s promotion to head of US oncology.

Read the full article about Walsh’s promotion to COO of Ogilvy Health.

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Image Sources:

• Pfizer Australia