Week In Review: Chi-Med To Raise $100 Million In US Offering Next Week

Deals and Financings

Hutchison China MediTech (Chi-Med) (AIM: HCM), a company developing novel drugs for oncology and autoimmune diseases, is scheduled to raise $100 million by listing ADS shares on the NASDAQ exchange (see story). The offering values Chi-Med at $1.9 billion. Each ADS will be equal to one-half of each London-traded Chi-Med share. Chi-Med will issue 6.1 million ADSs at a price to be determined by demand, though it will probably be close to one-half the present London ADS value, or $16.33 each. The underwriters have the option of placing another $15 million of stock to cover overallotments. The transaction is scheduled to take place the week of March 14th.  

Meinian Onehealth Healthcare, a Shanghai provider of China medical exams and disease screening, will pay $415 million to acquire the remaining 72% of a rival, Ciming Health Checkup Management (see story). In January 2015, Meinian purchased its original 28% stake in Ciming, though it did not disclose the price. Meinian said it would issue new shares to finance the acquisition. Still pending is the contentious battle for iKang Healthcare (NSDQ: KANG), another China provider of medical examinations. iKang’s management has offered $17.80 per ADS to take the company private, while Meinian is offering $25 per ADS, a 40% increase and a $1.5 billion valuation. 

Two affiliated China investors, Tianyi Lummy International and China BioPharma Capital, participated in a $60 million financing of North Carolina’s Argos Therapeutics (NSDQ: ARGS) (see story). One year ago, the two China companies agreed to a $40 million investment in Argos that included Lummy Pharma’s acquisition of China rights to Argos’ immunotherapy cancer treatment, Arcelis™. Argos said the latest capital raise will fund the company for 15 months, long enough to complete a Phase III trial of Arcelis.  

Haisco Pharma (SHZ: 002653) secured China rights to a novel treatment for chronic wounds developed by Microbion, a US-Canada biopharma (see story). To gain the rights, Haisco made an investment of undisclosed size in Microbion. The drug, MBN-101, is a clinical-stage product in the bismuth-thiol class aimed at treating resistant and difficult-to-treat infections, including biofilms. Haisco will be responsible for China regulatory work and commercialization of MBN-101.