Nothing changes perceptions like an attention grabbing headline. Last week, news came that an AIDS vaccine, developed by a team of China scientists, produced “good” results in its Phase I trial (see story). In this case, the unassuming word “good” means the vaccine performed better than other experimental AIDS vaccines in their Phase I tests. The scientific team, aware of the daunting Phase II and III trials still ahead, is being cautious before claiming complete success for the vaccine. For the part of the world still stuck in thinking China biopharma is exclusively devoted to generic versions of western drugs, the announcement shows that China biopharma is at the forefront of this particular unmet issue of public health. The scientific team developing the vaccine is led by Prof. Shao Yiming, head of China's National Center for Disease Control and Prevention. The vaccine itself employs a unique mechanism. Using a smallpox vaccine as a carrier, the HIV virus gene is inserted into the vaccine. The vaccine has a replicative vector, which kills the HIV virus by replicating the attenuated HIV gene. The vaccine has already begun its Phase II trial, and we all wish them success.

Meanwhile, last week also saw the announcement of new deals among China biopharma companies, as they continue to consolidate entities and expand their business plans. Tigermed Consulting (??????????), a CRO with a clinical trial focus, established a subsidiary, Hunan Tigermed Xiangya Drug R&D Ltd. (see story). The subsidiary will augment Tigermed’s services in the pre-clinical and Phase I areas. A collaboration with Central South University (CSU), Tigermed Xiangya will give the company a Phase I Clinical Laboratory. Services will include, among others, pharmacokinetics (PK), pharmacodynamics (PD) and bioequiavailability (BE) studies.

Erye Pharmaceutical Co. (OTCBB: CHBP) of Suzhou tightened its relationship with NeoStem, Inc. (AMEX: NBS) when principals of Eyre invested $500,000 in a private market financing of NeoStem (see story). The investors paid $1.25 per unit; each unit includes one share of NeoStem and one warrant to purchase an additional share at $1.75. NeoStem ended the trading session at $.91, lower by one cent. In November, NeoStem agreed to acquire a 51% stake in Eyre Pharma. NeoStem is in the business of collecting and storing adult stem cells for future medical need.