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Juno Therapeutics (JUNO) sets-up sub, JW Biotechnology (Shanghai) Co., Ltd with WuXi AppTec – HOLD post news

April 8, 2016 12:20pm

… To build a Chinese Cell Therapy company leveraging JUNO's Immuno-oncology cell-based immunotherapies for patients with hematologic and solid organ cancers

JUNO and WuXi AppTec have started a new company in China. JW Biotechnology (Shanghai) Co., Ltd's whose mission will be to build a Chinese cell therapy company by leveraging JUNO's chimeric antigen receptor (CAR) and T cell receptor (TCR) technologies together with WuXi AppTec's R&D and manufacturing platform and local expertise for patients with hematologic and solid organ cancers.

James Li, M.D., formerly a Kleiner Perkins partner and General Manager of Amgen China, and a JW Biotechnology (Shanghai) Co., Ltd co-founder, has been appointed CEO of JW Biotechnology (Shanghai) Co., Ltd. Dr. Ge Li of WuXi AppTec’s will serve as Chairman of the Board of JW Biotechnology (Shanghai) Co., Ltd, and the remainder of the Board of Directors will initially include Dr. James Li, Hans Bishop, Steve Harr, M.D., Juno's Chief Financial Officer and Head of Corporate Development, and Edward Hu, WuXi AppTec's CFO and CIO.

The Bottom Line: WuXi AppTec's contract services are the basis for development and commercialization in China. JUNO and WuXi AppTec have equal initial ownership in JW Biotechnology.

Juno will receive an upfront payment in equity, milestone payments, and royalties on any net sales.

JUNO is UP +$0.93 or +2.27 to $41.78 in a day’s trading range of $40.47 to $43.14. The issue to consider is that trying to get any revenue re-patriated to the US will have many barriers but, that is still an early warning.

HOLD post the news.

Over 2.5 million people in China die annually from cancer, making it imperative for us to find an effective structure to reach these patients. The Chinese government's regulatory reforms are expected to drive growth and demand for quality medicines that target major unmet medical needs in China.

35 companies, 1 interpreter!

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