China’s probiotics sector undoubtedly holds immense potential for growth.
According to Alibaba Health data, in China's probiotics market in 2022, two international manufacturers, DuPont and Chr. Hansen, accounted for the majority of the market share, at approximately 50% and 35%, respectively. In contrast, domestic manufacturers such as Wecare Probiotics, Vland Biotech, and Runying Bio held relatively smaller market shares, at approximately 6.6%, 4.1%, and 2.5%, respectively.
For Chinese probiotic manufacturers, this represents a market with immense growth potential. To break the dominance of foreign giants, some companies are taking the lead by leveraging scientific research and brand building.In 2021, Hangzhou Puyuan Biotechnology Co., Ltd. also entered this field, leveraging microbiome-based preparations to modulate gut microbiota and regulate immune homeostasis, thereby developing a series of novel approaches for the prevention and treatment of autoimmune diseases.。
Establish a “localized” strain library, deploying resources of over 10,000 microbial strains
Market competition in the probiotics industry is, at its core, an intense rivalry centered on proprietary strains and advanced manufacturing technologies.In this field brimming with challenges and opportunities, mastering unique, high-quality probiotic strains, along with efficient and stable technologies for screening, evaluation, production, and storage, has become the key for companies to stand out.
Puyuan Biotechnology, which entered the market with innovative technologies, naturally has a deep understanding of the importance of this technological barrier.
First, regarding the founder’s background, Puyuan Biotechnology was established by Professor Liang Qiming from the Shanghai Jiao Tong University School of Medicine. In addition to holding a Ph.D. from Florida State University and completing postdoctoral research at the University of Southern California, Professor Liang has dedicated over a decade to biomedical R&D, specializing in the exploration of immune mechanisms underlying microbial infections and translational research.
In addition to Professor Liang, Professor Wang Yuhao, another co-founder of Puyuan Biotechnology, has also achieved breakthrough accomplishments in the field of gut microbiota–host interactions. Notably, his research on gut microbiota regulating host lipid metabolism not only revealed, for the first time, a novel mechanism by which microbes utilize host circadian clock components to participate in metabolic regulation, but also elucidated the pivotal role of the transcription factor NFIL3 in this process. These findings have been published multiple times in prestigious international journals such as Science, and have received numerous commentaries and highlight features in renowned journals. One of these studies was recognized by the American Gastroenterological Association as one of the Best Gut Microbiome Studies of the Year.
Combining the research experience of the two scientist founders,By leveraging its independently developed high-throughput culturomics-based isolation and identification technology for microbial strains, target screening technology for functional strains based on the “microbiota-host interaction” mechanism, and AI-assisted strain screening optimization technology, Puyuan Biotechnology has successfully established a comprehensive “localized” functional strain library comprising over 10,000 strain resources.
To date, Puyuan Biotechnology possesses over 2,500 proprietary strains with excellent characteristics, covering multiple therapeutic areas including inflammatory bowel disease, multiple sclerosis, ankylosing spondylitis, tumor immunology, and diabetes. Notably, the company holds seven patented strains that have been deposited at the China Center for Type Culture Collection (CCTCC) and are supported by extensive scientific evidence.
To explore the functional properties of bacterial strains in greater depth, Hangzhou Puyuan Biotechnology Co., Ltd. has adopted a dual approach: on one hand, it has developed diverse disease models covering multiple fields, including autoimmune diseases, neurological disorders, and infections; on the other hand, it has established collaborative partnerships with several renowned hospitals, such as The First Affiliated Hospital, Zhejiang University School of Medicine, Sir Run Run Shaw Hospital, and Ruijin Hospital, thereby providing scientific, evidence-based support for the clinical application of these strains.
On this basis,Hangzhou Puyuan Biotechnology Co., Ltd. has also completed in-depth characterization studies on more than 200 proprietary high-quality microbial strains with independent intellectual property rights.. These strains not only exhibit excellent tolerance, maintaining viability in simulated gastrointestinal environments, but also demonstrate potent inhibitory effects against intestinal pathogens, thereby helping to maintain gut microbiota homeostasis and reduce the risk of intestinal diseases.
“Consumption” First, Achieving Stable Cash Flow
Since its inception,Hangzhou Puyuan Biotechnology Co., Ltd. is positioned to center on the probiotic industry, using food and foods for special medical purposes (FSMP)/health supplements as entry points, with the goal of researching, developing, and manufacturing live biotherapeutic products suitable for clinical applications.。
Xu Wangyun, General Manager of Puyuan Biotechnology, described this development philosophy as “having flesh, blood, and soul.” Specifically, the R&D and sales of platform-based consumer products are regarded as the “flesh and blood,” while microbial innovative drugs are considered the “soul.” In 2022, Puyuan Biotechnology took the lead in launching Gibson ready-to-eat probiotic products, entering the consumer market.
In fact, probiotics have two distinct advantages and characteristics: First, although classified as functional foods, the probiotics market is already quite mature among such products, with high consumer awareness; scientific popularization and market education have achieved significant results. Second, probiotics can be regarded both as specialized functional foods and as mass-market consumer goods, holding immense potential to cross over from professional domains into the broader mainstream consumer market.
To Compete in the Consumer Probiotics Market, Product Efficacy Validation and Safety Assurance Are Key to Winning Consumer TrustGibson not only precisely regulates the balance of gut microbiota, effectively alleviating constipation and controlling diarrhea, but also enhances human immunity. Its clinical trial data are particularly remarkable: 90% of participants reported significant effects within 7 days, showed marked symptom improvement after 15 days, and reached the optimal state of consolidation and repair by day 30.
To further enhance competitiveness,Puyuan Biotechnology has also partnered with DuPont, a top-tier global supply chain partner from the United States.DuPont’s century-long expertise in the probiotics sector, backed by nearly 10,000 scientists, thousands of scientific publications on formulation strains, and ISO Class 100,000 cleanroom facilities, provides an unwavering guarantee of quality for Gibson’s probiotic products. This not only ensures that Gibson’s products achieve industry-leading standards across all stages—from strain research and development to production and processing—but also secures exceptional product quality and stability at the source.
Xu Wangyun told VCBeat that the consumer-grade probiotics industry is currently mired in a predicament characterized by uneven quality and a mix of reputable and dubious players. “There are relatively few professional-grade participants, particularly those with in-depth understanding of clinical and health domains; many entering companies are merely extensions of the food industry,” Xu Wangyun stated.Hangzhou Puyuan Biotechnology Co., Ltd. aims to leverage its scientific R&D expertise to develop probiotic products that genuinely benefit human health. More importantly, its early entry into the food consumer market has also provided the company with a stable cash flow.
Advancing Toward Live Biotherapeutic Products, with Multiple Product Pipelines Already in Place
“Funds generated from the sale of consumer products will be reinvested by Puyuan Biotechnology into the research and development of live biotherapeutic products, creating a virtuous cycle,” stated Xu Wangyun.
Live Biotherapeutic Products (LBPs) are a class of biological products containing live organisms (such as bacteria) that can be used to prevent, treat, or cure human diseases or indications, excluding vaccines. With the deepening of microbiome research, the field of LBPs has garnered increasing attention.
In its live biotherapeutic product (LBP) portfolio, Hangzhou Puyuan Biotechnology Co., Ltd. has also accelerated its pace. Xu Wangyun revealed that,Puyuan Biotechnology has established a pipeline of four live biotherapeutic product candidates, including Pm001, Pm002, BW002, and Dm008, targeting indications such as inflammatory bowel disease, ankylosing spondylitis, liver injury, and type 2 diabetes. Among these, Pm001, Pm002, and BW002 have all entered the preclinical research stage, with Pm001 expected to obtain Investigational New Drug (IND) approval in 2025.
Compared with the food consumer market, competition in the pharmaceutical market appears to be more intense and cutthroat. Xu Wangyun acknowledged that drug development cycles are longer and regulatory approval processes are stricter, but Hangzhou Puyuan Biotechnology Co., Ltd. is fully prepared. It is understood that the company plans to launch a new round of financing from late this year into next year to secure additional funds for team building, clinical advancement, and sales expansion, thereby ensuring the smooth progress of its drug R&D efforts.
As is well known, in the field of biomedicine, any company will face enormous challenges during its early stages of growth. These challenges may stem from the complexity of technological innovation, the substantial demand for capital investment, and the lengthy and uncertain clinical trial process. However, it is certain that the future of Puyuan Biotechnology is worth anticipating.
*Puyuan Biotechnology will launch a new round of financing. If investment institutions are interested in Puyuan Biotechnology and its technical products, please contact us.