Zhejiang Tianyuan, Novartis deal

Novartis agreed to acquire an 85% stake in vaccine company Zhejiang Tianyuan for RMB850 million ($124.5 million) in cash. Tianyuan has marketed vaccines for seasonal influenza, hemorrhagic fever with renal syndrome, Japanese encephalitis and meningococcal meningitis. According to Novartis, Tianyuan had 2008 sales of $25 million. Novartis said the deal will facilitate the introduction of more of its vaccines in China, where it currently offers vaccines against influenza and rabies. The deal, which is subject to government and regulatory approval in China, is expected to close in 1H10.

Separately, Novartis announced it will invest $1 billion over the next five years to increase R&D activities in China. The company will expand the Novartis Institute of BioMedical Research (CNIBR) and relocate it in Shanghai. CNIBR's activities will include analytics, biomarkers, in vivo pharmacology, protein production, characterization and scale-up screening, chemistry, proteomics, genomics and imaging. Novartis said it expects CNIBR to increase collaborations with other institutions in China. ...