Huanghai Pharmaceutical – Multidimensional Industry Upgrades Exploration


Overview


Huanghai Pharmaceutical is a leading player in China’s generic drug industry with a specialization in time-released medication. Its two most popular products, Nifedipine and Metformin, both enjoy an annual sales volume of over 2 billion RMB, propelling Huanghai to become the largest pharmaceutical company in Qingdao, the provincial capital of Shandong. However, recent breakthrough in bio-technologies reduced the barriers to entry for the generic drug industry. On the other hand, Huanghai is also facing pressure to expand beyond its current product lineup in preparation for its imminent IPO launch in Hong Kong. In lieu of Huanghai’s needs, Bridge Point Capital organized a one-week immersion program for Huanghai in the United States to better understand current trends and dynamics in the bio-pharma industry, explore potential overseas collaboration and identify business development opportunities.


Challenges


Despite being a current market leader in China’s time-released generic drug vertical, changes in technology are creating a paradigm shift against Huanghai’s market position. These challenges include:

  • Increasing competition within the Chinese pharmaceutical industry due to lower barriers to entry and relaxing regulation from China’s National Medical Products Administration.

  • Pressure for short to medium term performance in preparation for a successful IPO in Hong Kong.

  • Limited access to business development opportunities and research collaborations overseas.

Needs

  • Licensing opportunities for new drugs and technologies in areas including cancer treatment, cardiovascular, and metabolic drugs.

  • Strategy advisory in business development and market expansion.

  • Regulatory advisory in complying and understanding the process of licensing American drugs in China.

The Bridge Point Solution


After understanding the current challenges faced by Huanghai, Bridge Point Capital drafted a comprehensive solution package to best cater to Huanghai’s most urgent needs. Some of the highlights of BPC’s service to Huanghai include:


1. R&D Collaboration:

  • Organized seminar with the Biological Science Department of Columbia University, where Huanghai met with the dean and other experts to discuss current development of antibody research.

  • Visited the Car-T Cells Lab of New York-Presbyterian University Hospital of Columbia and Cornell to understand advancement in Car-T biotechnologies.

  • Visited Dana-Farber Cancer Institute to learn about the latest progress of clinical trial-stage cancer medicines.

  • Visited Harvard Medical School and discussed licensing opportunities for a list of potential Harvard technologies.

  • Visited Massachusetts Institute of Technology and its research incubator. Held dialogue with Dr Zhinan Xia, pioneer in antibody research, and discussed recent trends in immunotherapy and antibody development.

2. Drug Licensing and Business Development Advisory:

  • Visited Pfizer’s North America headquarter. Held meeting with Pfizer’s director to discuss current pharmaceutical marketing strategies and future development. Signed a Memorandum of Understanding with Pfizer’s China subsidiary, UpJohn, to explore future collaboration opportunities.

  • Collaborated with Sino-American Pharmaceutical Professionals Association (SAPA) to organize a seminar which invited chief scientists from major pharmaceutical corporations including Merck, Gilead, Bristol-Myers Squibb and Johnson & Johnson to explore prospective drug licensing opportunities in China.

  • Generated a list with over 100 potential licensing opportunities in generic drugs according to Huanghai’s needs throughout the immersion program.

3. Regulation and Compliance Advisory

  • Held meeting with prominent law firm Winston & Strawn to obtain an overview of the regulatory landscape for drug approval and licensing in China and America.


Selected Organizations & Corporations Huanghai Established Relationships With


The Bridge Point Advantage


For Chinese pharmaceutical companies seeking to expand market share and forge business collaborations with western market leaders, the services provided by Bridge Point Capital offers to fulfill these needs on multiple fronts. In our week-long immersion trip with Huanghai, we present to Huanghai a plethora of licensing, research corporation and business development opportunities. Through establishing and building relationships with global pharmaceutical giants such as Pfizer, Huanghai’s immersion trip opens up endless opportunities to expand its current market footprint, allowing it to gain potential new channels and resources they can use to venture beyond its product portfolio. Meanwhile, by leveraging on Bridge Point Capital’s exclusive network of the legal and regulatory experts, Huanghai is assured to enjoy a streamlined and hassle-free experience in navigating the regulatory labyrinth to license U.S. medications to China. The comprehensive solution designed by Bridge Point Capital not only addressed the urgent needs of Huanghai, but also opened up new doors for market expansion and industry upgrade.


About us:


Bridge Point Capital is a private equity firm based in New York with a focus on U.S.-China cross-border investment. We invest in disruptive late-stage healthcare companies that can benefit from penetrating the vast yet unexplored Chinese healthcare market. We aim to leverage our expertise in both healthcare and capital markets to establish a sustainable investment platform for our investors.