Shengyuan Pharmaceuticals Secures Tens of Millions RMB in Pre-A Financing Led by Qirong Venture Capital, Xieyao Capital, and Baifu Health with Hyi Capital as Exclusive Financial Advisor

VCBeat (WeChat ID: vcbeat) has learned that Shengyuan Medicine (hereinafter referred to as “Shengyuan” or the “Company”), a leading integrated ophthalmic diagnosis and treatment platform in China, recently announced the completion of its Pre-A financing round, raising tens of millions of RMB. The round was jointly invested by Qirong Venture Capital, Xieyao Capital, and Baifu Health, with Haoyue Capital serving as the exclusive financial advisor. Shengyuan Medicine stated that the proceeds from this financing round will be primarily used for the preclinical development of dry eye disease therapeutics and the market promotion of innovative ophthalmic point-of-care testing (POCT) products.

Founded in May 2015 and located on Guangzhou International Bio Island, the company specializes in the research and development of ophthalmic diagnostic products and therapeutic drugs. Its core team comprises industry elites from internationally renowned ophthalmic pharmaceutical companies such as Pfizer, Alcon, and EyeCRO, covering the entire industrial chain including target discovery, new drug R&D, clinical development, and marketing. With established R&D and GMP-compliant manufacturing facilities, the company ensures comprehensive capabilities for the R&D, production, and sales of Shengyuan Ophthalmology’s diagnostic and therapeutic products.

Dr. Huang Jingfeng, Founder and CEO of Shengyuan Medicine, earned his Ph.D. from the Scripps Research Institute in California, USA. With nearly 20 years of extensive experience across the entire spectrum of drug development—from novel drug discovery to clinical development—in multinational pharmaceutical companies, he spent over a decade at Johnson & Johnson in the United States. There, he engaged in research on the mechanisms of immune diseases, innovative drug R&D, and clinical trials, accumulating substantial expertise in applying bioinformatics, genomics, and proteomics to study disease molecular mechanisms and biomarkers. Later, he served as Director in the Global Ophthalmology New Drug Clinical Development Department at Pfizer, where he was primarily responsible for clinical translational medicine research in ophthalmic diseases, clinical trials of new drugs for dry eye disease, and external collaborations. He also served as an expert member of the Data and Safety Monitoring Committee for clinical trials at the National Eye Institute (NEI). Dr. Huang has amassed rich experience and resources in ophthalmic translational medicine research, the study and clinical application of biomarkers, and operational management.

Ophthalmology has emerged as a focal point in biotechnology in recent years, boasting significant market potential. However, compared to international standards, China’s existing ophthalmic technologies and treatment modalities still have substantial room for improvement and development. Shengyuan Medicine leverages biomarkers as a strategic entry point to develop innovative ophthalmic drugs, spanning from pathological mechanisms to therapeutic targets. Simultaneously, the company establishes in vitro objective diagnostics and molecular subtyping for eye diseases to guide the clinical development and application of new drugs. By breaking away from the current reliance on optometric and imaging equipment in ophthalmic diagnosis and treatment at the level of pathological mechanisms, Shengyuan Medicine introduces precision medicine into the field of ophthalmology.

In terms of pharmaceuticals, the company focuses on product development targeting the mechanisms of ocular diseases and rapidly achieves clinical translation, significantly reducing R&D cycles and costs. In configuring its product pipeline, the company prioritizes drug projects for refractive errors and anterior segment diseases, which feature simple and convenient administration routes and low clinical translation risks. Leveraging biomarker research, the company has built a portfolio of products through a combination of in-house development and in-licensing. Its first new drug is an eye drop formulation for the treatment of dry eye disease.

Taking dry eye products as an example, with the changes in modern social life, there is a huge unmet clinical need for the diagnosis and treatment of dry eye. However, since dry eye is a category of diseases with different pathological mechanisms and complex and diverse pathogenic mechanisms, existing treatment methods have significant limitations.

Restasis® is the first drug approved by the U.S. FDA for the treatment of aqueous-deficient dry eye disease, with the immunosuppressant cyclosporine as its active ingredient. Although Restasis® demonstrated only a marginal advantage over the control group in clinical trials, along with significant irritation and a slow onset of action, it still achieved considerable commercial success, reaching global sales of $1.19 billion in 2019.

The mechanism of action of the company’s SY-201 eye drops differs from that of existing dry eye treatments. It effectively enhances the repair of ocular surface epithelial tissue, inhibits damage and cell death induced by dry eye, and stimulates epithelial cell proliferation. Extensive data from animal models and investigator-initiated clinical studies demonstrate that the product features rapid onset of action, favorable safety profile, and high response rate. Furthermore, pursuing the 505(b)(2) regulatory pathway can accelerate clinical development.

For ophthalmic POCT products, identifying and validating the correlation between biomarkers and diseases requires big data, long-term accumulation, and strong interpretation capabilities and experience in bioinformatics and systems biology. Leveraging years of biomarker research, extensive industry experience, and a robust R&D capability, Shengyuan has become the first company in China to develop independently originated rapid tear fluid testing products. These products are internationally leading and fill a gap in the domestic market.

Rapid In Vitro Immunoassay for Lymphotoxin-alpha (LTα-POC) consists of a micro-tear collector, an LTA reagent card, and a compact analyzer, featuring quantification, rapidity, and ease of use. The LTA assay has previously completed prospective controlled clinical trials involving over 1,000 cases of dry eye and non-dry eye subjects at multiple centers, including the Xiamen Eye Center Affiliated to Xiamen University, the Zhongshan Ophthalmic Center of Sun Yat-sen University, the Eye & ENT Hospital of Fudan University, and West China Hospital of Sichuan University. These studies have validated the high clinical diagnostic value of the LTA assay, supporting its use as an adjunctive tool for the clinical diagnosis of dry eye disease.

Dr. Huang Jingfeng, Founder & CEOShengyuan’s team is committed to expanding its ophthalmic omics platform and applying it to the development of pharmaceuticals and diagnostic products. The ophthalmology sector holds immense market potential, with substantial unmet needs in both diagnosis and treatment. Leveraging its research and accumulated expertise in biomarkers, the company has rapidly established an integrated layout in diagnostics and therapeutic drugs. Meanwhile, its first-generation diagnostic product has obtained regulatory approval, and a marketing team composed of leading figures in academic promotion within China’s ophthalmology community has been assembled. I am delighted to receive support from experienced and well-resourced investment institutions at this critical milestone in our development. Moving forward, the company will continue to deepen its engagement in the ophthalmology field, advance the development and implementation of new technologies, and benefit eye disease patients in China and around the world.

Yu Yongping, General Manager of Qirong Venture Capital Medical Fundstated that tear fluid proteomics will revolutionize the entire diagnostic and therapeutic framework for ocular surface diseases, driving the industry toward precision medicine. Dr. Huang’s team has accumulated over 20 years of experience in ophthalmic pharmaceuticals and companion diagnostics. Their LTα-POC product, validated by clinical trials involving more than 1,000 human subjects, holds significant practical value for the precise diagnosis of dry eye disease. We are confident in the team’s professionalism and dedication, and look forward to their continued ability to deliver surprising results for investors.

Head of Xieyao CapitalIt stated that Shengyuan Medicine, leveraging its biomarker technology platform and focusing on ophthalmic diagnosis and treatment scenarios, is simultaneously developing innovative drugs and a series of POCT testing products, thereby establishing a unique competitive advantage in the field of precise diagnosis and targeted therapy for eye diseases. The management team possesses outstanding professional expertise and extensive experience in new drug R&D, clinical development, and the marketing of ophthalmic products. There are high expectations for Shengyuan Medicine to rapidly evolve into a “unicorn” enterprise in the niche sector of ophthalmic diagnosis and treatment.

Dr. Xu Weixin, Partner at Baifu HealthIt was stated that, from a team perspective, Mr. Huang, the founder of Shengyuan, has dedicated many years to the field of ophthalmology and is an expert in the clinical management of dry eye disease in the United States; Mr. Li, the head of medical device sales at Shengyuan, established the China ophthalmic pharmaceutical sales team for a multinational pharmaceutical company; and Professor Liu, a collaborative researcher on new drugs for dry eye disease, is a leading academic authority in ophthalmology in China. From a product perspective, the dry eye disease diagnostic product is relatively unique in the Chinese market, has obtained registration approval, and is poised for nationwide promotion. From an R&D perspective, the dry eye disease candidate drugs have all demonstrated positive data, with expectations that both projects will enter Phase III clinical trials within three to four years. We are confident in Shengyuan’s future.

Ding Yameng, Founding Partner of Haoyue CapitalIt was stated that ophthalmology, as a hotbed for global innovation, holds immense market potential, and Haoyue has long been closely monitoring and remains optimistic about the development of this sector. Shengyuan is one of the few platform-based enterprises in China with capabilities in both diagnostic products for eye diseases and drug development. Through years of accumulation, the company’s team has established efficient collaborative capabilities spanning from early-stage target discovery to clinical development, product commercialization, and subsequent promotion. We believe that by leveraging internal R&D and external acquisitions, the company will build a comprehensive portfolio of ophthalmic diagnostic and therapeutic products, accelerate the development and implementation of ophthalmic solutions, and benefit more eye disease patients in China.

Qirong Venture Capital, established in 2017, is a healthcare investment fund jointly founded by Tus-Holdings Science & Technology Services, Huarong Rongde, and Junhao Capital. It has invested in more than ten outstanding enterprises, including Kemei Diagnostics (in vitro diagnostics, with an application filed for the STAR Market), Ruibo Biology (nucleic acid therapeutics, planning to file for the STAR Market in the near term), Haichuang Pharmaceutical (small-molecule targeted drugs, planning to file for the STAR Market in the near term), Zhongke Weiguang (coronary imaging), Zhidao Biology (innovative peptide drugs), and Zhidao Medical Management (third-party hospital evaluations), delivering substantial returns to its investors.

Xieyao Capital is a venture capital fund management platform focused on the pharmaceutical sector under the Chinese Academy of Sciences (CAS). Leveraging the new drug R&D resources and platform advantages of the Suzhou Institute for Drug Innovation, Shanghai Institute of Materia Medica, CAS, it primarily invests in early-stage and growth-stage new drug development projects. The firm incubates and cultivates outstanding biopharmaceutical technology enterprises, drives pharmaceutical technological innovation and achievement transformation through resource empowerment, aims to build a renowned biopharmaceutical venture capital fund in the industry, and collaboratively constructs an ecosystem for pharmaceutical innovation.

Baifu Health Medical Investment Fund (Baifu Health) is the second RMB-denominated fund established by the former RMB fund team of Bio-Veda Capital (BVCF). It has attracted core team members from Shanghai Yuansu Investment Management Co., Ltd. to join, with the Yuansu team hailing from Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd. (a company listed on the STAR Market). The team members directly responsible for investment and fund operations each possess over fifteen years of relevant experience. Over the past decade, the current investment management team has invested in 17 pharmaceutical and healthcare companies across China and the United States. These portfolio companies span both countries and cover a series of highly forward-looking sectors with significant market potential, including innovative biologics, cell therapy, healthcare services, high-value-added medical devices and consumables, medical big data, and online diagnosis and treatment. Baifu Health focuses on early-stage investment opportunities in the biomedical sector. With the support of Fudan-Zhangjiang, it provides extensive post-investment services to its portfolio companies, aiming to generate high-quality, low-risk returns for its investors.