On the evening of December 22, the Source Concord Cell Gene Engineering Co., Ltd. (Source Concord) announced a 13 percent (118.7 million yuan) acquisition of shares held by Dr. Xiang Hu for Shenzhen Beike Biotechnology Co., Ltd. (Beike). Source Concord hopes that through this acquisition of shares in Beike Biotechnology, it will be able to help shape Chinese national policy planning and redefine the industrial transformation of stem cell technology.
In the domestic field of basic research and industrialization of stem cells, Source Concord and Beike Biotechnology are the largest firms in the North and South respectively, and occupy an important position in the biotechnology market. Beike Biotechnology is the world’s largest stem cell producer, a world leader in stem cell research, cell banking, and immunotherapy. Currently Beike Biotechnology has the world’s largest, most comprehensive data-based clinical safety and efficacy study database (consisting of more than 80,000 people) and an integrated research system. BGI, another life science company with the Shenzhen Municipal Government is a key partner of Beike Biotechnolgy. With so much experience and data in the life science field, Beike Biotechnology has laid the groundwork for creating an effective and successful business model.
One exciting aspect of the shares acquisition is the creative and revolutionary aspect that Beike brings to the biotechnology field. Beike Biotechnology has filed for thirty-one patents for their technologies, and as of the acquisition date, twenty-six have achieved authorization.
Another facet of this deal is the advantage in terms of new drug approvals. Currently, Beike’s submission for the use of umbilical cord mesenchymal stem cells for the treatment of systemic lupus erythematosus (SLE) has been registered and formally accepted by the State Food and Drug Administration (CFDA), and has entered the review process. Beike Biotechnology is also a cancer immunotherapy company, using immune cells to target a number of treatment areas. One such example is the recent international strategic cooperation between Beike Biotechnology and Altor BioScience. The deal between Beike and Altor pertains to a novel recombinant dimeric protein complex, ALT-803, which has conducted fourteen stage 1 & 2 clinical trials in the United States. Once the molecule is transferred to an easily useable form, a new growth point will emerge in the immunotherapy market in China.
Beike Biotechnology has been committed to basic research, translational research, investing in research and development of stem cell therapy and stem cell advanced technology. Each year Beike has seen and increase in stem cell research bases and prospective clinical pharmacology based cooperation projects. Once a change in the national policy takes place, the development of the stem cell and immunotherapy industry can achieve immeasurable growth. While on August 1, 2014, Beike’s revenues were 60.21 million yuan with a net profit of 19.35 million yuan, earnings could potentially see an unprecedented boost after CFDA approval and national policy reform.
Source Concord said the acquisition will help the company achieve its biological therapy, cell gene drugs, biological resources preservation, joint development of the US treatment of cosmetics, cell preparation, genes and other business resource goals through the integration of both sides to further enhance the company’s technology research and development. For Source Concord to achieve clinical transformation and provide biotech products, Beike Biotechnology will help lay a solid foundation to help achieve the company’s stem cell layout and downstream industry chain by providing biological resources, technologies, products, and services.
About Source Concord
Source Concord Cell Gene Engineering Co., Ltd. (hereinafter referred to as “Source Concord”) is China’s first investment in biological resources in the enterprise storage project, is currently the only one in Shanghai and Shenzhen in cell engineering and genetic engineering as their main business, is a listed company (stock code: 600645) dual-core driver of development, and also hosts the National Stem Cell and Regenerative Medicine Industrial Technology Innovation Alliance vice chairman.
After 14 years of operation, Source Concord Stem Cell Genetic Engineering Co. is one of China’s largest life and health industry management projects industry companies, registered capital of 349 million, has a market value of over ten billion yuan. Source Concord also owns East Concord stem cell genetic engineering Co., and Ze Biotechnology Co., Ltd., a subsidiary of three well-known stem cell corporations. Currently, they are focusing on the development of a set of biological resource preservation projects, genetic testing, stem cell therapy beauty cosmetics, cell preparation and other projects.
Visit www.vcanbio.com for details.
SOURCE: Source Concord Cell Gene Engineering Co., Ltd.