Summary
- Illumina will acquire GRAIL, an Illumina spin-out that is developing an early screening test for multiple forms of cancer, for $8 billion in cash and stock.
- Sequoia Capital China is raising $2.2 billion for a new yuan-denominated fund, the company's sixth fund.
- Sinovac Biotech announced the start of a Phase III trial of CoronaVac, its COVID-19 vaccine, in Turkey.
Deals and Financings
Illumina (NASDAQ:ILMN) will acquire GRAIL (GRAL), an Illumina spin-out that is developing an early screening test for multiple forms of cancer, for $8 billion in cash and stock (see story). In 2017, GRAIL bought Cirina, a Hong Kong-San Francisco liquid biopsy company cofounded by Dr. Dennis Lo, a pioneer in testing blood to detect early stage cancer. Cirina was backed by Decheng Capital. GRAIL expects to launch its first product, Galleri, a test for more than 50 types of cancer, in 2021.
Before GRAIL was acquired by Illumina for $8 billion, GRAIL merged with Cirina, a Hong Kong company that had developed the novel technology that was the cornerstone for GRAIL's cancer test (see story). Cirina was backed by Decheng Capital, a healthcare venture capital firm with offices in Silicon Valley and Shanghai. In an exclusive interview, Min Cui, PhD, Founder and Managing Partner of Decheng, told ChinaBio Today about Decheng's history with Cirina and how the company came to be part of the $8 billion Illumina-GRAIL deal.
JD Health, a Beijing online healthcare company started by China e-commerce giant JD.com (NASDAQ:JD), plans to raise $3 billion in a Hong Kong IPO later this year, according to unofficial sources (see story). In August, JD Health completed an $830 million Series B funding led by Hillhouse Capital at a $12-billion valuation. JD Health offers 30-minute delivery of pharmaceuticals, a telemedicine service that saw increased demand during the COVID-19 pandemic and health services such as genetic testing. It was spun out of JD.com last year.
Sequoia Capital China is raising $2.2 billion for a new yuan-denominated fund, the company's sixth fund. The company has invested in about 600 China companies in sectors that include TMT, healthcare, consumer/service, and industrial technology over the past 15 years. Sequoia China's website lists 40 healthcare members of its portfolio, including Innovent, CStone, Zai Lab and Venus MedTech. The new fundraising is significant because it shows Sequoia, a US company, is committed to building its China business, despite rising diplomatic tensions between the two countries.
Genor Biopharma, a Shanghai company, is conducting a Hong Kong IPO that could raise up to $370 million. The company is developing a clinical-stage portfolio of 14 mAbs and recombinant fusion proteins, a combination of novel drugs and biosimilars that targets indications in cancer, metabolic and autoimmune diseases. Its PD-1 molecule is currently in four pivotal Phase II trials. In June, Genor completed a $160 million Series B financing led by Beijing's Hillhouse Capital Group.
Viva Biotech (OTCPK:VBIZF) (HK: 1873) of Shanghai will pay $80 million to acquire fellow drug CRO SYNthesis Med Chem (Hong Kong). SYNthesis is a preclinical small molecule drug discovery CRO that specializes in high-end pharmaceutical chemistry and synthetic chemistry services. The company has labs in Suzhou, Shanghai and Australia. SYNthesis' expertise is "downstream" from Viva's structure-based drug discovery services that it offers to biopharma customers. One month ago, Viva announced a $368-million deal to acquire an 80% stake in Zhejiang Langhua Pharma, a CDMO and API company.
