US-based MediBeacon Inc. has reached a $30 million deal giving China’s Huadong Medicine Co. Ltd. exclusive rights to its portfolio in China, Hong Kong, Macau and Taiwan, according to a statement.
Under the agreement, Huadong will make an initial payment of $15 million in lieu of equity to MediBeacon, valuing the company at $300 million. Once the TGFR system receives FDA approval, the US company will receive a second $15 million equity payment at a valuation of $400 million.
As part of the deal, the Shenzhen-listed medicine company will fund clinical trials, commercial and regulatory activities in 25 Asian countries and regions including Greater China (PRC Mainland China, Hong Kong, Macau, Taiwan), Thailand, Vietnam, Indonesia, Philippines and Singapore, according to a statement.
Huadong Medicine will fund all commercial and regulatory activities in Greater China and select Asian countries. In addition, MediBeacon will receive royalty payments on net sales in the specified countries.
As part of this transaction, Richard B. Dorshow, chief scientific officer and co-founder of MediBeacon Inc., will assume the role of special scientific advisor to Huadong Medicine.
Formed in 2012, MediBeacon’s largest shareholder is Pansend Life Sciences, LLC, a subsidiary of HC2 Holdings, Inc. The company commercialises biocompatible optical diagnostic agents for physiological monitoring, surgical guidance, and imaging of pathological disease.
Shenzhen-listed Huadong Medicine, on the other hand, produces and sells antibiotic, a Chinese patent medicine, synthetic drug, genetic engineering drugs, besides specialising in Chinese herbal medicines, medical apparatus and instruments.
The company successfully issued 50 million A-shares on the Shenzhen stock exchange in December 1999. At present, the registered capital of the company is 14.58 million yuan. The company and its main subsidiaries have more than 8,000 employees.