Diamedica gets $4m for China push

The deal will involve Hermed buying 20 million shares in the Canada-listed company at C$0.26 apiece, a transaction which values the group at about $23 million. Diamedica stock was last trading at C$0.28.

According to a statement, the capital will be applied toward R&D programs for upcoming clinical trials of the company's DM199 product, a synthetic human tissue protein used to treat neurological and kidney diseases.

"We look forward to working with Diamedica in positioning DM199 for the growing Chinese markets of acute ischemic stroke and diabetic kidney disease markets, as a strategic partner we'll leverage our resources in China," said Jerry Xiao, managing director of Hermed. "DM199 will also provide further commercial opportunities globally."

Diamedica believes DM199 has the potential to treat a broad spectrum of clinical scenarios where re-establishing blood flow and reducing inflammation in patients is vital to preserving organ function. The treatment has been administered to about 100 patients and demonstrated a safe, well tolerated profile along with biological effect.

Fosun and SK agreed last year to create Hermed as a $50 million fund that would invest primarily in the healthcare industry in China, with an emphasis on sub-sectors including pharmaceuticals, medical services, and devices and diagnostics. Investments typically range from $5-10 million per company with a 4-5 year exit horizon.

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• Topics
• Greater China
• Healthcare
• PIPEs
• Early-stage
• China
• USA
• Pharmaceuticals
• Fosun Group