HONG KONG – With its latest acquisition, China’s Walvax Biotechnology Co. is raising the ante on its investments to $600 million, hoping to leverage its growing size into a profitable pipeline of, among other things, monoclonal antibodies (MAbs).

Walvax, of Kunming, Yunnan Province, is now working on a deal that would ultimately give it full control of Genor Biopharma Co. Ltd., of Shanghai, China, a specialized developer of MAbs. If the deal goes through, Walvax should emerge as one of the larger Chinese biotechnology conglomerates. Genor is estimated to be worth around $160 million. Walvax’s market cap is approximately $1.02 billion.

Walvax has announced a framework agreement to acquire 58.08 percent of Genor from Shihezi Ansheng for a still-undetermined amount. Shihezi is an investment company based in the western territory of Xinjiang, China.

“The whole thing is still underway. There are still assessments and an audit to go,” Gong Sun Qing, a manager at Walvax, told BioWorld Asia.

Under terms of the proposed deal, Walvax will first acquire 51 percent of Genor Biopharma stock from Ansheng and then gradually take over the remaining 7.08 percent. The deal calls for Walvax to finish its audit, assessment and legal due diligence by mid-December.

Walvax (SZ:300142), founded in 2001, is focused on the research, development, production and sales of biologics, vaccines and blood products.

The company has a state-of-the-art R&D center and a vaccine production facility in Yunnan and a pilot base in the China Medical City (CMC) industrial park in Taizhou, Jiangsu Province. Walvax’s existing products include Group ACYW135 meningococcal polysaccharide vaccine, Group A and C meningococcal polysaccharide vaccine, and Haemophilus Influenzae Type b Conjugate vaccine.

Genor Biopharma is a subsidiary of Wison Group, a multi-industry conglomerate. The company was launched in December 2007 to focus on developing and commercializing therapeutic MAbs, recombinant therapeutic proteins and other biologics. The company employs a team of experts with rich experience in R&D, manufacturing and quality control at companies such as Amgen Inc., Genentech Inc., a unit of Roche AG, and Abbott Inc. (now Abbvie). This experience has made Genor one of China’s top MAbs developers and a fitting acquisition target for Walvax.

Wison has invested $20 million in Genor Biopharma along the way and holds 41.92 percent of its stock. Walvax said it plans to eventually acquire Wison’s remaining stock.

Walvax’s goal is to raise its international profile. This latest deal represents a large step into MAbs.

“Entering the MAbs developing area is a strategic choice of the company,” Walvax said in its deal announcement.

Genor Biopharma’s development pipeline includes 10 MAbs; four are biosimilars.

In July 2013, the China Food and Drug Administration (CFDA) approved the launch of clinical trials for GB221, a biosimilar version of Roche’s breast and gastric cancer drug Herceptin (trastuzumab).

Genor also is seeking trial approval for two other biosimilars: One is GB242, a biosimilar version of Remicade (infliximab, Johnson & Johnson). The other is GB232, a biosimilar version of Humira (adalimumab, Abbott). Both target rheumatoid arthritis.

Next up is an application for a clinical trial approval in 2014 for GB222, a biosimilar version of Avastin (bevacizumab, Roche AG).

This is Walvax’s second foray into the potentially lucrative MAbs market. In April and July of 2012, the company signed a collaboration framework deal and a capital increase agreement with Shanghai Fengmao Biotechnology Co., a biotech developing MAbs.

That deal fell through after a messy break-up that included allegations by Walvax of contract fraud.

In June, Genor Biopharma and Biocnd Inc., a Korean biotech, inked a partnership to develop two MAb biosimilars. Under those terms, Genor licensed to Biocnd the South Asia, Southeast and Northeast Asia (except Greater China) and Russian rights to GB232, a biosimilar of Humira and rest-of-world rights (except Greater China, Japan, the U.S. and Europe) to GB221, a biosimilar of Herceptin. Biocnd will be responsible for international clinical development and registration for both products. Financial terms were not disclosed.

According to Thomson Reuters Cortellis, Walvax also has deals with Changchun Huapu Biotechnology, of Jilin, China, to develop recombinant hepatitis B vaccine and Mellow Hope Pharm Industrial Co. Ltd., of Shenzhen, China, to market Walvax’s Haemophilus influenza type B conjugate vaccine worldwide.