Shanwan Biotech Secures Tens of Millions in Series B Funding to Advance In Situ Gel Drug Delivery Platform

VCBeat learned at the earliest opportunity that recently,Suzhou Shanwan Biomedical Technology Co., Ltd. (hereinafter referred to as “Shanwan Bio”) announced the completion of its Series B financing round, raising tens of millions of yuan and bringing its cumulative fundraising to nearly 100 million yuan. This round was led by the Lianyungang Jinqiao Emerging Industries Fund. Micro-Nano Capital served as the exclusive financial advisor. The funds raised will be used to advance clinical trials for multiple in-house developed products in Shanwan Bio’s pipeline, as well as to construct China’s first in-situ gel drug production base featuring multi-scale and multi-line manufacturing capabilities.

Shanwan Biopharma, established in 2018, is primarily engaged in the research, development, and production of sustained- and controlled-release drug delivery systems for the treatment of chronic diseases. Currently, its core R&D pipeline projects are mostlyIn Situ Gelling Long-Acting Sustained and Controlled-Release Drug Formulations。Subcutaneous in situ gel is a formulation approach in which the drug and excipients are mixed prior to injection, with final drug encapsulation and sustained/controlled release achieved in vivo after administration. As a novel drug dosage form,Compared with traditional microspheres or implants,In Situ GelIt offers advantages such as high drug-loading capacity, excellent compatibility, more controllable release, greater flexibility in duration, simple and efficient manufacturing processes, and low cost.It has become one of the hotspots in pharmaceutical formulation research in recent years.

Currently, the clinical advantages and pharmacoeconomic value of high-end formulations are highly aligned with the national strategy for high-quality development.PromoteInnovation in Advanced Drug Formulationsgradually becomingA New Wave of Industry Development.However, on a global scale, the number of approved generic complex formulations remains very limited.According to data from CICC Qixin, China's complex formulation market maintained a steady growth trend from 2017 to 2022, reaching RMB 540.8 billion in 2022, with a compound annual growth rate (CAGR) of 8.1% over the past five years. The complex formulation market is expected to continue its upward trajectory in the coming years, projected to reach RMB 701.6 billion by 2025 at a CAGR of 9.1%, and RMB 994.0 billion by 2030 at a CAGR of 7.2%.

As pharmaceutical innovation increasingly focuses on “innovative drug delivery methods,” Suzhou Shanwan Biomedical Technology Co., Ltd. has continued to deepen its expertise in the field of in situ gels, achieving a series of breakthrough results.The company has successfully established China’s first technical platform for in situ gel subcutaneous sustained-release formulations and built China’s first production line for in situ gel formulations compliant with both Chinese and U.S. GMP standards, which has officially been put into operation.Furthermore, Shanwan Biomedical obtained China’s first clinical trial approval for an in situ gel drug, filling a gap in this specialized technical field.

The localization of this platform technology represents a breakthrough achievement in China’s drug delivery system (DDS) field that warrants significant attention.From an investment perspective, Shanwan Biomedical’s forward-looking strategic layout not only demonstrates its precise grasp of cutting-edge formulation technologies but also signals its intent to secure a high-value-added position within the sustained-release formulation industry chain. Particularly against the backdrop of long-acting drug delivery becoming a major trend in chronic disease management and oncology treatment, Shanwan Biomedical’s subcutaneous in situ gel technology, as a highly scalable formulation platform, has successfully carved out a new path for differentiated competition in China’s pharmaceutical formulation industry. This innovation has undoubtedly pressed the “accelerator” for domestic formulation innovation, holding significant industry value and broad application prospects.

For this round of financing,Yao Zhichao, Chairman of Shanwan BiomedicalStatement: In today’s highly competitive yet opportunity-rich pharmaceutical landscape, innovation is undoubtedly the core force driving continuous industry advancement. Adhering to its unwavering commitment to innovation, Suzhou Shanwan Biomedical Technology Co., Ltd. (Shanwan Biomed) focuses on the upgrading of drug dosage forms. We recognize that China’s high-end complex formulation sector remains a vast blue ocean, eagerly awaiting exploration and development by responsible and capable enterprises. With courage and determination, Shanwan Biomed is fully dedicated to this endeavor. Leveraging our innovative capabilities and relentless efforts, we aim to inject vibrant vitality into this emerging market, leave a solid and significant mark on the path of developing high-end complex formulations, help propel China’s pharmaceutical industry to new heights, and contribute Shanwan Biomed’s unique strength to safeguarding public health.

Ma Wanli, General Manager of Jiangsu Jinqiao Private Equity Fund Management Co., Ltd.It was stated that the biopharmaceutical sector has long been a key industrial development focus for Lianyungang City. We are highly optimistic about Shanwan Biomedical’s in situ gel formulation project and believe that its commercial mass-production initiative in Lianyungang will accelerate innovation in high-end, complex drug formulations. Like fresh blood, it will inject continuous new vitality into Lianyungang’s pharmaceutical industry, driving the entire emerging pharmaceutical sector toward higher quality and greater innovativeness, thereby leaving a significant mark on the development history of Lianyungang’s biopharmaceutical industry.

Li Dingyi, Founder of Micro-Nano CapitalIt is noted that leuprorelin has always been a blockbuster drug in the field of prostate disease treatment. Currently, Suzhou Shanwan Biomedical Technology Co., Ltd. is the first company in China to obtain clinical trial approval for an in situ gel formulation of leuprorelin. Furthermore, there remains a gap between China and overseas markets in the field of advanced drug formulations. As a representative enterprise in domestic formulation development, Suzhou Shanwan has significant room for future growth.

Jiangsu Jinqiao Private Equity Fund was established in 2021 as a market-oriented equity investment fund management institution initiated by Lianyungang Industrial Investment Group. Leveraging the resource advantages of its diverse shareholders, Jinqiao Fund selects and focuses on high-quality enterprises across China that demonstrate industrial synergy with Lianyungang City. It specializes in layout and resource integration along the upstream and downstream segments of advantageous industrial chains, including biopharmaceuticals, new materials, new energy, high-end manufacturing, and synthetic biology, thereby cultivating a cohort of high-tech enterprises and industrial clusters to elevate the level of industrial development. Since its inception, the team has completed investments in over 40 companies, with cumulative investment amounts nearing RMB 3 billion, and has successfully guided multiple portfolio companies to list on capital markets.

MicroNano Capital is a leading investment bank in China’s “life and health” industry, dedicated to identifying high-quality enterprises with the potential to achieve fivefold value growth within three years from the vast landscape of medical innovations. Through its three core business pillars—incubation, financing, and consulting—the firm helps companies enhance their value and achieve capital appreciation. The team brings many years of experience in investment, investment banking, and consulting within the life and health sector, covering multiple sub-sectors including pharmaceuticals, medical devices, medical aesthetics, AI+healthcare, and synthetic biology. As of 2024, MicroNano Capital has assisted more than 30 partners in securing over RMB 1.5 billion in financing, deeply incubated two projects, served more than 30 long-term consulting clients, and provided consulting services on clinical development, global expansion, business transformation, and industrial planning to over 70 projects.