Week In Review: Shanghai ChemPartner, A China CRO/CMO, Completes Reverse Merger

Shanghai ChemPartner, a CRO/CMO, closed its reverse merger with Quantum Hi-Tech China Biological (SZE: 300149) for a combination of cash and stock (see story). ChemPartner said it will have easier access to additional capital as a listed entity. Quantum makes probiotics for packaged foods, and its operations will remain separate from ChemPartner’s. The merger was first announced over a year ago, though terms of the agreement have not been disclosed. All of ChemPartner’s CRO/CMO operations will become part of Quantum.  

YiChang HEC ChangJiang Pharm (HK: 1558) raised $400 million from Blackstone Group (NYSE: BX) in the a convertible bond offering (see story). The bonds will pay 3%. HEC Pharm, based in Yichang in central China’s Hubei province, will use the funds to acquire additional drugs and other pharmaceutical products. Blackstone will help HEC Pharm in its M&A pursuit and also advise the company on improving strategy, operations and international cooperation.  

The Buck Institute for Research on Aging, Insilico Medicine and Juvenescence have joined together to form a fourth company, Napa Therapeutics (see story). Napa will develop anti-aging drugs against a NAD+ target discovered in the labs of Eric Verdin, President and CEO of the Buck Institute, an independent research center located in Novato, CA. Insilico is a company that uses AI to develop better drugs more quickly. In June, it announced a funding round led by WuXi AppTec (SHA: 603259). Insilico could earn more than $100 million in milestone payments from Napa if the program is successful.  

Haisco Pharma (SHZ: 002653) invested $10 million in North Carolina’s Pneuma Respiratory in return for China rights to Pneumahaler™, a breath-activated digital inhaler intended for asthma and COPD (see story). Initially, Pneuma intends to use the device to deliver off-patent medications, but the company believes the Pneumahaler will eventually prove to be an effective delivery tool for biologic medications. According to Pneuma, the device combines advanced droplet ejector technology with digitally controlled breath-actuation.