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segunda-feira, 27 de novembro de 2017

Chinese biotechnology companies set to raise $10 billion this year in innovation push

Pharmaceutical groups in China are on track to raise about $10 billion this year from venture capital investors, initial public offerings (IPOs) and licensing agreements with foreign drugmakers, reported the Financial Times. Mark Alles, chief executive at Celgene, which recently finalised a global strategic oncology collaboration with Chinese biotechnology company BeiGene, said "true innovation is happening here in China, and multinational companies have to throw away the bias about where to go and how to think about where innovation is happening."

Under the deal, BeiGene licenced its investigational PD-1 inhibitor BGB-A317 to Celgene for most global markets, except Asia, but including Japan, for $263 million upfront, as well as up to $980 million in milestones and royalties tied to future sales of BGB-A317. Celgene also took a $150-million equity stake in BeiGene, which is conducting trials for two cancer drugs, and another for an anaemia therapy in the US and Australia.

While most US drug trials being run by Chinese drugmakers are early-stage, some companies, such as Zensun, are further along. The Shanghai-based pharmaceutical firm, which raised $76 million in a funding round this month, has completed Phase II trials of its heart-failure drug Neucardin in China, Australia and the US, and has obtained FDA approval to advance the treatment into late-stage testing.

In August, WuXi Biologics and its Chinese partner Harbin Gloria Pharmaceuticals sold an exclusive license to the anti-PD-1 antibody GLS-010 to US-based biotechnology company Arcus Biosciences for up to $816 million. WuXi Biologics also raised $586 million in an IPO in Hong Kong in June, while Zai Lab, which specialises in cancer drugs, raised $172 million in a Nasdaq IPO last month.

"More and more venture capitalists are willing to invest in the [Chinese] biotechnology industry," commented Jinzi Wu, CEO of liver-disease drug developer Ascletis, which raised $100 million in financing early this year. The executive added "we have so many local funds wanting to invest in innovative companies."

Chengbin Wu, founder of EpimAB Biotherapeutics, an oncology-focused start-up that raised $25 million in a funding round this year, suggested that changes brought about by reforms of China's drug approval process since 2015 have helped bolster investment. "Speeding up the process to shorten the timeframe to be more or less close to the US is very important for innovation, because timing is everything," he said.

However, some investors have expressed concerns about inflated valuations. Liang Lin of Eli Lilly's Asian venture capital arm, which has invested almost $500 million into mostly Chinese start-ups since 2008, noted that "most of the innovative drugs being developed in China are in the 'me-too' category," products that are similar to existing medicines, but aimed at the domestic market. "The valuations for innovative pharmaceutical companies in China are much higher than before, which is a concern," Lin added.

Financial Times, By: Anna Bratulic


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