The move will fill the gap in China and change the pattern that transnational pharmaceutical enterprises alone in China build up research and development center.

The move will fill the gap in China and change the pattern that transnational pharmaceutical enterprises alone in China build up research and development center.

Joint Party’ Realizing 90% Equity Merger of NMS Group, a Cancer Drug Research Institute in Italy


On March 28 Milan time, the Chinese national flag was raised in Nerviano Medical Sciences Group S.r.l, the world famous emerging tumor research and development agency in Italy (hereinafter referred to as NMS groups). The China union players gave priority to the V-Capital in west China holding wholly-owned subsidiary, Yi Cun equity in Sun Company, Nanjing Hicin Pharmaceutical and its holding stockholder Cao Yuping, venture capital in Dong Cheng district and Gao Yan, eucalyptus capital, who completed 90% share acquisition to the NMS group with a total value (including capital injections and debt restructuring) of about € 300 million. The merger will change the current pattern that transnational pharmaceutical enterprises alone in China build up research and development center, allowing the country to have truly access to the innovative resource base for the research and pharmacy of global anti-tumor drug.


The NMS Group is not only the largest research and development agency for cancer drug in Italy, but also one of the few comprehensive research institutions in the field of international antitumor drugs in line with the global drug research and development certification system and quality standards, with more than 53 years of research and development history. The Group provides one-stop service of drug research and development. The business covers drug synthesis and screening, preclinical testing clinical trials and new drug custom-made development and manufacture organization (CDMO), with a complete industrial chain from early drug detection to the drug registration. The company boasts 429 employees, including 378 researchers (146 for new drug research and development, 99 for preclinical testing, 33 for clinical trials, 100 for CDMO), of which more than 63 has received doctoral degrees.


The representative products of NMS Group refer to Doxorubicin Hydrochloride for Injection, Epirubicin Hydrochloride for Injection, Idarubicin Hydrochloride for Injection, Cabergoline, Sunitinib Malate Capsules. There are 20 varieties under study: 6 are in clinical stage, 5 of which have been externally authorized, 2 are to be listed in 2018; 2 are to be admitted to clinic, 8 are in preclinical stage. In addition, 4 antibody-coupled drugs are available. Of the 2 products to be approved in 2018, LGX818 products are in clinical phase III; NMS-E628 (Entrectinib, NTN) products are in clinical phase II. Currently the products have access to breakthrough drug qualification from the United States Food and Drug Administration (FDA) and drug priority qualification from the European Medicines Administration (EMA).


It is noteworthy that the well-known pharmaceutical company in Europe announced to purchase U.S. pharmaceutical company Ignyta in the course of this merger for about 1.7 billion dollars on December 22, 2017. The company focused on the development of precision treatment drugs for rare tumors, taking a vast--TrkA/B/C, ROSL and ALK inhibitor Entrectinib as its core, which is available in oral biology and has central nervous system activity. It is the new drug that NMS authorizes to Ignyta. According to the authorization agreement, NMS Group can obtain up to 12% of royalty income when the drug comes into market. 


Tang Weiqing, the chairman of Huaxi Holding and V-Capital, said the successful acquisition of NMS Group represents the acquisition, integration and investment ability of Huaxi Holding and V-Capital in the big healthy industry, which lays a sound foundation for Huaxi Holding to be a strong asset management business in the next 2-3 years, to build high quality industrial assets and to make profits in the near future.



(The first one on the left: Yi Baxian, vice president and management partner in Shanghai Pu Dong Science and Technology Investment Co., Ltd. The third one on the left: Zhao Jianghua, the managing director in V-Capital. The fourth one on the left: Andrea Agazzi, the chairman in NMS Group. The first on the right: Xu Jun in Eucalyptus capital)


The managing director Zhao Jianghua, who is responsible for the acquisition of V-Capital, has worked in the San Jiu group and other well-known pharmaceutical companies for nearly 20 years. He indicates that this acquisition will fill the gap in China and build a research and development for cancer drug base on the basis of one-stop anticancer drug research and development industry chain in NMS group, achieving coordinated development between China and Europe in drug development and innovation.


Hicin Pharmaceutical shows in the announcement that the acquisition will be conducive to the promotion of new drug development in China and innovation capabilities of the entire industry chain in pharmaceutical development. The company will speed up the deep docking with international innovative resources and improve the company's new drug research and development level as well as international operational capabilities so as to enhance the company's comprehensive competitiveness by virtue of the implementation of this project. 


Andrea Agazzi, the chairman of NMS group, is also optimistic about China's capital inflows, saying that the entry of major powers--Chinese shareholders, was a significant step in the "once again" strategy of the NMS group launched by the current board of directors about two years ago.


The remaining 10% stock right of NMS group is held by the Foundation of Lombardy Regional Government Medical Research (FRRB) in Milan, Italy.  


Schedule: A case in big health industry Representative in V-Capital

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