HONG KONG – Newly listed Chinese biopharmaceutical company Shenyang-based 3SBio Inc. acquired small-molecule maker Zhejiang Wansheng Pharmaceutical Co. Ltd. for ¥528 million (US$85 million) to complement its oncology and nephrology pipeline.
Wansheng is engaged in the R&D, manufacturing and sales of chemically synthesized pharmaceuticals. It makes dermatological drugs, cancer drugs and drugs to treat diabetes complications.
"3SBio's proven capabilities in biologicals, combined with Zhejiang Wansheng's expertise in small-molecule manufacturing, will provide the enlarged group with a flexible platform for addressing the unmet medical needs of patients and their health care professionals," said 3SBio CEO and Chairman Lou Jing.
"Zhejiang Wansheng's current product portfolio includes six antidiabetic and hypertension products that are commonly used by chronic kidney disease patients, which will expand our products offering in the dialysis market in addition to our current nephrology portfolio," said Lou. "The acquisition also expands our portfolio of oncology drugs as Zhejiang Wansheng has six approved oncology products."
Wansheng is known for its expertise in dermatological and diabetes complications treatment-related products. It has three cancer drugs: Si Qu Di (docetaxel), Rui Si Yi (nastrozole) and Wan Wei (azasetron). 3SBio started working with the company last year and in October 2014 it obtained exclusive distribution rights to Wan Wei via a licensing deal. Wansheng's portfolio also includes Qiming Keli, one of the few treatments for diabetic retinopathy, which affects 34 percent of diabetic patients.
"In dermatology, we will also seek further indications for fexofenadine hydrochloride, a treatment for chronic idiopathic urticaria, a skin condition common to many dialysis patients," said Lou.
In addition, Wansheng has 13 GMP-certified production lines in China that can produce tablets, capsules, traditional Chinese medicine granules, injections, tinctures, ointments and lotions. It also has a sales force of 300 people.
Wansheng's turnover in 2013 and 2014 was ¥227 million and ¥279 million. Net profits before taxes were ¥22 million and ¥29 million for those years, respectively.
"The acquisition establishes the company's capability in the research and development, production and sales of chemically synthesized pharmaceuticals," said 3SBio. "It also expands the company's product offering in various areas, in particular the diabetes complication and dermatology area where the target's [Wansheng] expertise lies."
3SBio expects the acquisition to enhance the cost competitiveness of its chemically synthesized products since it can now terminate the manufacturing contract for iron sucrose and the in-licensing arrangement of three cancer drugs after the acquisition. By taking over Wansheng, 3SBio can also further develop its small-molecule pipeline by leveraging Wansheng's facilities and expertise and using its own strong distribution and sales network.
On June 22, 3SBio announced the acquisition of the ex-China global rights to California-based Apexigen Inc.'s anti-TNF monoclonal antibody (MAb) technology after it got the China rights for the same technology in 2006 and came up with drug candidate SSS07.
The anti-TNF MAb inhibits one of the key chemokine messengers that regulate the inflammatory process and plays an important role in the underlying mechanisms of rheumatoid arthritis, psoriasis and many other inflammatory disorders. SSS07 has moved from preclinical to a phase Ia trial in March. A phase Ib trial will start in early 2016.
3SBio went public in Hong Kong on June 11 after delisting from Nasdaq in 2013. The company's stock price (HK:1530) closed Tuesday at HK$9.02 (US$1.16), down HK0.08.