3SBio said today it has acquired Zhejiang Wansheng Pharmaceutical for RMB 528 million ($85 million), less than a month after completing the largest IPO of the first half of 2015.
3SBio said the acquisition will enhance its capabilities by adding an integrated small-molecule drug R&D and a manufacturing platform. Zhejiang Wansheng has 13 production lines capable of producing various drug delivery formats, including tablets, capsules, TCM granules, injections, tinctures, ointments, and lotions. All were recently GMP-certified, according to the buyer.
“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 healthcare professionals,” 3SBio CEO and chairman Lou Jing, M.D., Ph.D., said in a statement.
The buyer also said the deal will also expand its product offerings for chronic kidney disease and oncology patients, and enable the company to further addresses unmet medical needs in diabetes-related complications and dermatology.
3SBio will now market the diabetic retinopathy treatment Qiming Keli, many of whose patients also suffer from kidney disease. In dermatology, the company added, it will seek approvals for additional indications for fexofenadine hydrochloride, a treatment for chronic idiopathic urticarial—a skin condition common to many dialysis patients.
Zhejiang Wansheng's current product portfolio includes six antidiabetic and hypertension products commonly used by chronic kidney disease patients. 3SBio said those offerings will expand its presence in the dialysis market by adding to its current nephrology portfolio. The deal also expands 3SBio’s portfolio of oncology drugs as Zhejiang Wansheng has six approved oncology products.
3SBio said the combined company will proceed with clinical development of “over 12” small-molecule pipeline candidates in its core therapeutic areas using internal facilities and expertise. 3SBio’s website lists 20 candidates: Eight in nephrology, six in cancer, and six in auto-immune diseases and other areas.
Pipeline candidates include HIF-PH inhibitor for anemia; cinacalcet hydrochloride for hyperparathyroidism; sevelamer carbonate for hyperphosphatemia; Colestilan for hyperphosphatemia and hypercholesteremia; DJ5 for autosomal dominant polycystic kidney disease (ADPKD); PEG-Irinotecanfor solid tumors; nadroparin calcium for blood clotting and thrombosis; and fondaparinux sodium for prophylaxis of deep vein thrombosis.
Zhejiang Wansheng currently has approximately 630 employees, including a national salesforce of around 300; 3SBio says its sales force numbers more than 600 professionals.
On June 24, 3SBio completed an IPO on the Hong Kong Exchange that generated $534 million in net proceeds, after deducting underwriting fees and estimated expenses in connection with the offering. The IPO was ranked number-one on GEN’s recently-published List of Top 20 Biopharma IPOs of January-June 2015.