HC2 Holdings, Inc. (“HC2”) (NYSE:HCHC), a diversified holding
company announced today that MediBeacon Inc., a privately held
portfolio company within HC2’s Pansend Life Science (“Pansend”)
announced today that they have entered into a definitive agreement
with Huadong Medicine, a publicly traded company on the Shenzhen
Stock Exchange (SZ:000963, U.S. dollar equivalent $6 billion market
cap). The agreement will provide exclusive rights to MediBeacon’s
portfolio of assets in Greater China. Huadong Medicine will
be responsible to fund the clinical trials, commercial and
regulatory activities in 25 Asian countries, including Greater
China (PRC Mainland China, Hong Kong, Macau, Taiwan), Thailand,
Vietnam, Indonesia, Philippines and Singapore.
Under terms of the agreement, MediBeacon will
receive an initial $15 million equity payment at a pre-money
valuation of $300 million and will receive a second $15 million
equity payment upon achieving US FDA approval for its TGFR
Measurement System at a pre-money valuation of $400 million.
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, PhD, Chief Scientific Officer and Co-Founder of MediBeacon
Inc., will assume the role of Special Scientific Advisor to Huadong
Medicine.
MediBeacon’s Transdermal Glomerular Filtration
Rate (TGFR) Measurement System is designed to measure kidney
function at the point of care without the need for blood sampling
or urine collection, and is poised to begin its pivotal trials in
the US and Europe. The U.S. Food and Drug Administration (FDA)
granted Breakthrough Device designation to the TGFR in
2018.1 MediBeacon’s agents and devices are not approved for
human use by any regulatory agency.
It is estimated that 10.8% of the people in
China suffer from Chronic Kidney Disease (CKD).2 Kidney disease is
a "hidden epidemic" affecting more than 850 million people
worldwide.3 The ability to measure GFR is of high clinical interest
especially in patients with, or at risk of, kidney disease.
MediBeacon’s fluorescent agent platform for use
in physiological function monitoring has important applications
beyond the field of kidney health. The Company’s Transdermal
Gastrointestinal Permeability System has been supported by multiple
grants from the Bill & Melinda Gates Foundation. In addition,
the company has just completed initial pre-clinical studies
evaluating use of its agents in imaging the vasculature of the
eye.
“The MediBeacon-Huadong partnership in Asia is
an important step for the Company,” said Philip Falcone, HC2’s
Chairman, Chief Executive Officer and President. “This
collaboration will allow breakthrough technology to help patients
in one of largest markets in the world. It will also provide
MediBeacon the capital to reach its regulatory and commercial goals
in other regions, including the United States and Europe.”
“We are excited that MediBeacon has entered into
a strategic partnership with Huadong Medicine, one of the leading
pharmaceutical companies in China,” said David A. Present, M.D.,
Co-Founder and General Partner of Pansend.
“Huadong Medicine has over 6,500 representatives
covering all key regions in China and has a major presence in the
treatment of kidney disease,” said Cherine Eldumiati Plumaker,
Co-Founder and General Partner of Pansend.
About MediBeacon Inc.MediBeacon’s mission is to
commercialize biocompatible optical diagnostic agents for
physiological monitoring, surgical guidance, and imaging of
pathological disease in the human population. Several product
concepts in these arenas are contained in the MediBeacon
Intellectual Property estate. MediBeacon’s portfolio includes a
renal function system that uses an optical skin sensor combined
with a proprietary fluorescent tracer agent that glows in the
presence of light. This system, currently in human trials, is
designed to enable clinically practical point of care measurement
of a patient’s kidney function. Learn more about MediBeacon at
www.medibeacon.com
About HC2 Holdings, Inc.HC2 Holdings, Inc. is a
publicly traded (NYSE MKT:HCHC) diversified holding company, which
seeks opportunities to acquire and grow businesses that can
generate long-term sustainable free cash flow and attractive
returns in order to maximize value for all stakeholders. HC2 has a
diverse array of operating subsidiaries across seven reportable
segments, including Manufacturing, Marine Services, Utilities,
Telecommunications, Life Sciences, Insurance and Other. HC2's
largest operating subsidiaries include DBM Global Inc., a family of
companies providing fully integrated structural and steel
construction services, and Global Marine Systems Limited, a leading
provider of engineering and underwater services on submarine
cables. Founded in 1994, HC2 is headquartered in New York, New
York. Learn more about HC2 and its portfolio companies at
www.hc2.com
For information on HC2 Holdings, Inc., please
contact:
Investor Relations Garrett Edson ir@hc2.com (212)
235-2691
About Huadong Medicine Co., Ltd.Established in
1993, Huadong Medicine Co., Ltd. specializes in the production and
sales of antibiotic, Chinese patent medicine, synthetic drug,
genetic engineering drugs, as well as wholesale business of Chinese
and western medicine, Chinese herbal medicines, medical apparatus
and instruments. Through many years of work, Huadong has built
competitive market position with its rich portfolio of products,
strong commercial capabilities, and well recognized brand names in
the fields of kidney disease, organ transplantation, diabetes, GI,
and operating rooms. The company is a large comprehensive
listed pharmaceutical company integrated with pharmaceutical
R&D, pharmaceutical industry, pharmaceutical distribution,
retail, pharmaceutical logistics, and undertakes the task of
special drug storage of the state, provincial and municipal
governments. The company successfully issued 50 million A-shares on
the Shenzhen stock exchange in December 1999. (Stock abbreviation:
Huadong Medicine; stock code: 000963). 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. In 2017, the
company realized operating revenue of 27.832 billion yuan. Net
profit attributable to shareholders of listed companies was 1.480
billion yuan. Learn more about Huadong Medicine at
www.eastchinapharm.com
1 Data on file. MediBeacon Inc., St. Louis, MO.2 “Prevalence of
chronic kidney disease in China: a cross-sectional survey”, Zhang
L. et al, Lancet. 2012 Mar 3;379(9818):815-22. doi:
10.1016/S0140-6736(12)60033-6.3 Joint Press Release, June 27, 2018
“The hidden epidemic: Worldwide, over 850 million people suffer
from kidney diseases”, American Society of Nephrology – ASN
(https://www.asn-online.org), ERA-EDTA (http://web.era-edta.org)
and ISN (https://www.theisn.org).
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