Roche Shuts Down Gene Sequencing Subsidiary NimbleGen and Completes Full Workforce Layoff; Fosun Pharma Acquires 28% Stake in DiHuiXin for RMB 406 Million to Expand IVD Business

June 22: Roche Announces Closure of Its Gene Sequencing Subsidiary NimbleGen, and laid off all 79 employees,The majority of the laid-off employees were scientists, technicians, and engineers. On June 20, Fosun Pharma announced that it planned to invest RMB 406 million in cash to acquire a 28% equity stake in Dihuixin, further enriching its business model for medical diagnostics and expanding sales channels for diagnostic products.

01

[HR] Wang Jian, General Manager of Roche Greater China, Leaves After Six Months; Role Temporarily Assumed by Greater China CFO

On June 23, sources revealed that Jay Wang, General Manager of Boston Scientific’s Greater China region, will step down, with his duties temporarily assumed by June, the CFO of Greater China.

Wang Jian joined Boston Scientific on November 15, 2017, asVice President of Boston Scientific and General Manager of Greater China, reporting directly to Wang Xin, Senior Vice President of Boston Scientific Corporation and President of the Asia-Pacific region, while also joining the leadership team of Boston Scientific's Asia-Pacific region.

Prior to joining Boston Scientific, Wang Jian served as General Manager for C.R. Bard in mainland China and Hong Kong. Before joining Bard, he had an 11-year career at Johnson & Johnson.

• In 2003, served as Product Manager for Johnson & Johnson’s Ortho Clinical Diagnostics (OCD) business in China; due to outstanding professional performance, was subsequently promoted to OCD Regional Manager, National Sales Manager, and National Director.until promoted to Vice President of Johnson & Johnson and General Manager of OCD；

• In August 2014, Wang Jian left Johnson & Johnson OCD and joinedBard serves as Vice President and General Manager for Mainland China and Hong Kong.；

• In April 2017, BD Medical announced the acquisition of Bard for $24 billion in a cash-and-stock transaction.
  

02

[Layoffs]Roche Shuts Down Probe-Based Gene Sequencing Subsidiary NimbleGen, Gradually Laying Off All Employees

On June 22, Roche issued a statement announcing its plan to close NimbleGen in Madison, Wisconsin.and dismiss all 79 employees. Specifically, four employees will leave by the end of this year, following layoffs of 45 staff at the end of 2019 and 30 in 2020. The majority of those laid off were scientists, technicians, and engineers.

In 2007, Roche acquired NimbleGen for $27.5 million; the company was founded in 1999,Consistently focused on the research and manufacturing of target enrichment probes for DNA sequencing。

In fact, this is the second round of layoffs at the company. Prior to this, in 2012, Roche shut down NimbleGen’s microarray business to focus on sequencing for target enrichment products, resulting in the dismissal of 44 out of 100 employees in Madison.

03

[Compensation] Top 10 Highest-Paid Female Executives in the Global Pharmaceutical Industry in 2017: Johnson & Johnson’s Sandra Nearly $20 Million, Ranking First

On June 18, GEN website selected the 2017 biopharmaceutical industryTop 10 Highest-Paid Female Executives. The highest-ranked isJohnson & Johnson's Sandra E. Peterson。In addition, the total compensation in 2017 for female executives from United Pharmaceuticals, AbbVie, Mylan, and Allergan also exceeded$10 million。

04

[Pharmaceuticals] CITIC Halts Acquisition of Harbin Pharmaceutical Group; Mixed-Ownership Reform Path Suspended Due to Policy Changes

On June 21, Harbin Pharmaceutical Group Co., Ltd. issued an announcement stating that CITIC Capital had terminated its tender offer for the company.The reason is that it received a notice forwarded by its controlling shareholder, Harbin Pharmaceutical Group, from the Harbin State-owned Assets Supervision and Administration Commission, given the significant changes in relevant policy regulations concerning the indirect transfer of equity interests in listed companies by state-owned shareholders.Harbin Pharmaceutical Group’s Mixed-Ownership Reform Path Temporarily Halted.

▲On May 16, the State-owned Assets Supervision and Administration Commission of the State Council and other authorities jointly issued the “Measures for the Supervision and Administration of State-owned Equity in Listed Companies” (Order No. 36), to effectively regulate the supervision and administration of state-owned equity in listed companies. Order No. 36 shall come into force on July 1, 2018, while Order No. 19 shall be repealed simultaneously.

According to public information, on December 25, 2017, the Harbin State-owned Assets Supervision and Administration Commission, CITIC Iceland, Warburg Pincus Iceland, Harbin Pharmaceutical Group, and CITIC Capital Healthcare signed the “Capital Increase Agreement Regarding Harbin Pharmaceutical Group Co., Ltd.” Pursuant to the terms of the aforementioned agreement, CITIC Capital Healthcare injected capital into Harbin Pharmaceutical Group and subscribed for its newly increased registered capital.1RMB 500 million. The actual controller of Harbin Pharmaceutical Group will change from the State-owned Assets Supervision and Administration Commission of Harbin Municipal People's Government to CITIC Capital Holdings.。

This suspension means that the mixed-ownership reform of Harbin Pharmaceutical Group will be postponed, with no clear timetable at present. It is expected that the mixed-ownership reform of Harbin Pharmaceutical Group will be launched again soon. Many in the industry speculate that CITIC Capital may also be involved next time.

05

[Acquisition] Fosun Pharma Acquires 28% Stake in Medical Device Company Dihui Xin for RMB 400 Million, Enriching Its Diagnostics Business

On June 20, Fosun Pharma announced that it plans to make a cash investment of RMBRMB 406 million, acquire the equity held by Hangzhou Digui28% Equity Interest in DiHuixin。

It is reported that DiHuixin was established in August 2015,Specializing in the agency and professional technical support of imported in vitro diagnostic (IVD) products, its agency brands mainly include Roche Diagnostics, Sysmex, Sebia, BD, and Beckman Coulter, among others. Dihui Xin's distribution products and technical support servicesCovering Guangdong Province, ChinaMajor tertiary and secondary hospitals and other medical institutions。

Upon completion of this transaction, DiHuixin will become an associate company of Fosun Pharma, further enriching its business model in medical diagnostics and helping to broaden the sales channels for diagnostic products.

06

[Medical Devices] CRH Partners with Thalis to Establish a Joint Venture: A Strategic Alliance of Leading IVD Distributors to Develop Regional Clinical Laboratories

On June 16, Thalis, a medical device company listed on the A-share market, announced its intention to jointly invest with China Resources Pharmaceutical Commercial Group Medical Devices Co., Ltd. to establish a new company. The proposed name of the new company is “China Resources Thalis Medical Technology Co., Ltd.”‍China Resources Medical Devices contributed RMB 17.85 million, holding a 51% equity stake, while Thales contributed RMB 17.15 million, holding a 49% equity stake. The Chairman of the Board is appointed by China Resources.。

Under the agreement, the new company will integrate the strengths of both parties to expand regional laboratory center projects and centralized laboratory service projects across cities and counties nationwide:

• CR Medical Devices and Subsidiaries of China Resources Pharmaceutical Commercial Group Co., Ltd.Responsible for the warehousing and distribution of hospital client resources and consumables such as in vitro diagnostic reagents.。

• SeresResponsible for the procurement and supply of diagnostic reagents, as well as providing after-sales service for equipment and daily operational management.。

CR Medical Devices Plans to Establish a Joint Venture with Thales, Marking the Third Subsidiary under CR Pharmaceutical Commerce to Enter into a Strategic Partnership with ThalesThe areas of cooperation are the joint establishment of regional clinical laboratory centers and the centralized supply of reagents and consumables.。

07

[Medical Devices]Latest! Ministry of Commerce Data: Ranking of Medical Device Sales Across 31 Provinces, Henan Takes the Top Spot

On June 21, the official website of the Ministry of Commerce released the “Statistical Analysis Report on the Operation of the Pharmaceutical Distribution Industry in 2017.” The report’s data show that in 2017, the total sales value of seven major categories of pharmaceutical products nationwideRMB 20,016 billion, year-on-year after excluding non-comparable factors+8.4%, with the growth rate decreasing by 2.0 percentage points year-on-year.

▲ Top 10 Provinces by Medical Device Sales

Among them, the total sales of medical devices in 2017 amounted to RMB 94 billion, year-on-year+54%The top three provinces by sales volume were Henan, Anhui, and Shandong. The combined sales from the top 10 provinces and municipalities accounted for 72.1% of the national total.

08

[Pharmaceuticals]Humanwell Healthcare Divests Blood Products Assets for RMB 660 Million to Strengthen Leadership in Core Competencies

On the evening of June 20, Humanwell Healthcare announced that the company had$102 million (approximately RMB 660 million)Transfer of the 20% equity interest in Zhongyuan Ruide to CSL Behring (Asia Pacific) Limited. Upon completion of the transaction, the Company will no longer hold any equity interest in Zhongyuan Ruide. The Company stated that the sale of the 20% equity interest in Zhongyuan Ruide will generate approximately RMB 250 million in investment income for the Company.

In its announcement, Humanwell Healthcare stated that in recent years, Zhongyuan Ruide has continuously expanded its business scale and enhanced its industry standing primarily by establishing new plasma collection stations to increase plasma volume, improving product yields, and advancing product research and development; however,Achieving economies of scale through organic growth is subject to numerous constraints, and catching up with industry leaders still faces many challenges。

Taking these factors into account, Humanwell Healthcare took the lead in divesting its blood products business and will exit certain niche segments with less pronounced competitive advantages or weaker synergies at appropriate times, so as to concentrate on strengthening its leadership or leading position in each market segment.

09

[Policy] State Council Executive Meeting: Accelerate Approval of New Drugs Listed Overseas

On June 20, the Premier of the State Council presided over an executive meeting of the State Council to determineAccelerate the approval of new drugs already marketed overseas, implement measures to reduce the prices of anticancer drugs, and strengthen the supply guarantee for shortage medicines.It mainly includes the following three points:

• Streamlined market approval requirements are applied to drugs for rare diseases and certain drugs for the prevention and treatment of life-threatening conditions, allowing direct submission for market approval with complete research data obtained overseas.Regulatory authorities shall conclude their reviews within 3 months and 6 months, respectively;

• All provinces (autonomous regions and municipalities) shall conduct specialized centralized procurement for anti-cancer drugs included in the National Reimbursement Drug List, and accelerate negotiations for the inclusion of exclusive anti-cancer drugs not covered by the list into the reimbursement scheme.Launch Pilot Programs for National Centralized Drug Procurement to Achieve Significant Reductions in Drug Prices；

• Establish a filing system for shortages of medicines and discontinuation of production of active pharmaceutical ingredients, and increase reserve efforts to ensure uninterrupted medication supply for patients.。

The release of this policy signifies that a batch of new drugs already marketed abroad will accelerate their approval process in China, addressing urgent clinical needs and enabling patients to access these "life-saving medications" sooner.

10

[Policy]NHC Issues Notice: Approval Requirements for Establishing Secondary and Lower-Level Medical Institutions Abolished, Further Lowering Barriers for Private Healthcare Providers

On June 19, the Medical Administration Bureau of the National Health Commission issued the "Notice on Further Reforming and Improving the Approval Work for Medical Institutions and Physicians."The core content is to deepen the reform of "streamlining administration, delegating power, and improving services," integrating the approval for establishment and practice registration into a single license for secondary and lower-level medical institutions.

The “Notice” indicates that, except for tertiary hospitals, tertiary maternal and child health care hospitals, emergency centers, emergency stations, clinical laboratory centers, Sino-foreign joint venture/cooperative medical institutions, and wholly owned medical institutions from Hong Kong, Macao, and Taiwan, the health administrative departments will no longer issue the “Approval Certificate for Establishing Medical Institutions” for the establishment of other medical institutions.The "Medical Institution Practice License" is issued only upon practice registration.

This means that the threshold for establishing private medical institutions has been further lowered.

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(Translational Medicine Network 360zhyx.com)