Healthcare & Life Sciences News & Trends: Oct Week 4

1. Business Moves

i. Hengrui Mulls Second Listing in Hong Kong

Hengrui Pharmaceuticals is contemplating a second listing in Hong Kong, potentially set for next year. Reports indicate that Hengrui is in discussions with advisors regarding a share sale that could raise at least $2 billion, contingent on market conditions. The company’s Shanghai-listed shares have appreciated by 12% this year, reflecting a strong market position with a valuation of $45.4 billion. The anticipated listing aligns with recent successful offerings in Hong Kong, including Midea Group’s $4.6 billion raise.

Takeaway: The trend of companies pursuing dual listings in both the A-share and H-share markets, known as “A+H” listings, has gained momentum. Currently, as many as 150 companies, including many biopharmaceutical firms, are successfully listed in both markets. This includes notable innovative drug companies like Beigene, traditional pharmaceutical firms like Fosun Pharma, and CXOs like WuXi AppTec. This move comes as Chinese companies seek to mitigate difficulties in raising funds and selling shares on the mainland.

ii. Merck Targets Brain Cancer with $30m Acquisition of Modifi

Merck & Co. announced its acquisition of Yale spinout Modifi Biosciences for $30 million. The deal includes a preclinical asset targeting the development of a novel treatment for glioblastoma (GBM), a notoriously challenging brain cancer with a low survival rate. The deal includes potential milestone payments of up to $1.3 billion based on the success of clinical trials and regulatory approvals for Modifi’s lead asset, MOD-246. Merck and Modifi will proceed with IND-enabling studies for MOD-246, aiming for clinical trials by the end of next year.

Takeaway: The acquisition positions Merck to leverage its resources to significantly advance GBM treatment. It follows Merck’s significant M&A activity last year, including the $10.8 billion purchase of Prometheus Biosciences and its advanced bowel disease antibody. Besides this, Merck also completed a $680 million acquisition of Harpoon Therapeutics in January, which includes its pipeline of T-cell engagers.

iii. Samsung Biologics Inks largest Manufacturing Deal

Contract development and manufacturing organisation (CDMO) Samsung Biologics announced a historic contract manufacturing deal worth $1.24 billion with an Asia-based pharmaceutical company. This contract is the largest signed with a single client. Samsung Biologics has established partnerships with 17 of the world’s top 20 pharmaceutical companies and is actively expanding its presence, which includes plans to open a new office in Tokyo. The company is also set to launch a dedicated antibody-drug conjugate (ADC) facility and a fifth plant, increasing their total capacity to 784 kL by April 2025.

Takeaway: The move is expected to enhance the firm’s biomanufacturing capacity to meet global healthcare demands.

2. Clinical Trials

i. BMS Bags NMPA’s Approval for Priority Review

Bristol Myers Squibb’s innovative myocardial myosin inhibitor, Mavacamten (generic name), has received priority review approval from the National Medical Products Administration (NMPA) in China.

Takeaway: This marks the first treatment of its kind to be approved in the region.

ii. SK Bioscience’s SKYCellflu Vaccine Approved in Indonesia

South Korea-based biotech company SK Bioscience received approval from Indonesia’s Food and Drug Agency (BPOM) for its SKYCellflu Quadrivalent influenza vaccine. SKYCellflu is notable for being the world’s first cell culture-based influenza vaccine to receive WHO prequalification (PQ). It is currently the only cell culture-based influenza vaccine available in South Korea. Its production process offers several advantages over traditional egg-based vaccines, including a shorter production timeline, reduced likelihood of viral mutations, and the elimination of the need for antibiotics or preservatives. These factors position SKYCellflu as a more effective option for responding to seasonal flu variations and potential pandemics.

Takeaway: This marks the first domestically produced influenza vaccine to be approved in Indonesia, which has a population exceeding 280 million. The approval sets the stage for expanding into Indonesia’s rapidly growing flu vaccine market, projected to nearly double from US$38.5 million in 2022 to US$69.1 million by 2030. With approvals from several Asian countries and a recent entry into the South American market, SK Bioscience is poised to expand its global export strategy.

3. People Moves

Omron: Omron Healthcare (China) appointed Chen Yixiao as its new Managing Director. Chen, who has a strong background in cross-industry management, will oversee business development and strategic planning in China to enhance the brand’s presence and align with the company’s vision of “Going for ZERO” in preventive healthcare. Chen’s strategy will focus on addressing the needs of Chinese consumers through innovative product development and expanding into preventive healthcare solutions.

TopAlliance: TopAlliance appointed Dr Mehul Shah as Vice President of Business Development. Prior to joining Junshi, Dr Shah served as Executive Director of Business Development for Oncology at Bristol-Myers Squibb, where he successfully advanced several strategic transactions in oncology, haematology, and cell therapy. Dr Shah has also completed over 25 complex deals across multiple therapeutic areas.

Sieris: Sieris Pharmaceuticals appointed Zhao Yang as Senior Vice President of Business Development. Zhao will be responsible for devising and executing business development strategies and focus on creating an extensive industry collaboration network. He will also lead licensing, co-development, commercialisation partnerships, mergers and acquisitions, and joint ventures to propel the company’s global growth. Zhao has over 20 years of experience in the pharmaceutical sector and a robust background in medical investment and commercial partnerships. His previous role as Senior Vice President and Head of Business Development at CanSino Biologics saw him play a pivotal role in a notable mRNA vaccine collaboration with AstraZeneca. He has also held significant positions at leading companies such as Frontier Biotechnologies, Tasly and Fosun Pharma, where he was involved in several high-profile licensing and acquisition deals.

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Image Credits:

• Reuters
• SK Bioscience