Vectura forms Chinese newco for asthma, COPD devices

Vectura Group plc (LSE:VEC) partnered with Tianjin KingYork Group Co. Ltd. and private equity investor Zendex Bio Strategy to form a JV -- Tianjin Kinnovata Pharmaceutical Co. Ltd. -- to develop and commercialize respiratory products in China and other Asian markets. Vectura will hold a 35% stake in the JV, which will develop Vectura's Clickhaler and Duohaler reservoir dry powder inhaler (DPI) devices in Asia for asthma and chronic obstructive pulmonary disease (COPD). Kinnovata also partnered with the Shanghai Institute of Pharmaceutical Industry (Shanghai, China) to develop additional DPI devices. Chris Chan, previously an advisor to Zendex, is CEO of Kinnovata.

KingYork, a subsidiary of Tianjin Pharmaceuticals Group Co. Ltd. (Tianjin, China), will have a 50% stake in the JV, and Zendex a 15% stake. The parties are each contributing assets -- including cash, IP and a manufacturing facility -- cumulatively worth RMB260 million ($42.3 million). Vectura said the deal will capitalize on "KingYork's local regulatory expertise and experience in corticosteroid products" to help Vectura access the Asian respiratory market. BioStrategy Management advised Vectura, which is eligible for royalties on sales through 2030. ...