Dunen Medicine Secures Tens of Millions in Series A+ Funding to Advance High-Quality Precision Pharmacotherapy Services

VCBeat has learned that Hangzhou Dunen Medical Laboratory Co., Ltd. (“Dunen Medicine”) recently announced the completion of its tens-of-millions-yuan Series A+ financing round.

This round of financing was led by Jingyao Fund, with participation from other well-known domestic funds. The proceeds will be used to support Dunen Medicine in the research and development of products and reagents related to precision medication, the continuous enhancement of its scientific research service capabilities, and further market expansion for co-established laboratories.

Group Photo at the Financing Signing Ceremony

Dun’en Medicine is a co-founding entity of the “Center for Clinical Precision Medication Research” at the Yangtze Delta Region Institute of Tsinghua University, Zhejiang, and also serves as the technical support and technology commercialization partner for the Zhejiang Yangtze Delta Biomedical Research and Development Center. The company focuses on precision pharmaceutical services, operating multiple platforms including a clinical personalized medication genetic analysis platform, a physicochemical platform for therapeutic drug monitoring, a platform for pharmacotoxicological research, and an AI-powered prescription assistance system. It provides clinical testing services related to precision pharmacotherapy and markets associated products such as testing equipment and assay kits.

Chen Zhijun, Founder and Chairman of Dunen Medicalstated: “Against the current backdrop of the capital market, this round of financing holds significant strategic importance for us. From an external perspective, it reflects the capital market’s long-term confidence in our prospects. Internally, it signifies recognition of Dunen’s development trajectory and industry value, while also strengthening our confidence and determination in corporate growth. Leveraging this financing, we will swiftly complete the transformation of our internal management and business model, achieving refined, process-driven, and systematic internal management, as well as standardized and systematic delivery of external services, thereby facilitating a rapid transition from mere implementability to high-quality development.”

Chen Zhijun, Founder and Chairman of Dunen Medicine

Amid the broader context of healthcare cost containment and rational drug use, the traditional model of “subsidizing medical services with drug profits” is shifting toward “sustaining medical practice through technical expertise.” Precision medication can enhance therapeutic efficiency and reduce overall drug treatment costs, thereby benefiting patients and becoming the mainstream trend in pharmacotherapy.

DunEn Medical was established in 2017 and is one of the earliest teams in China to focus specifically on precision pharmaceutical services. Centered on clinical guidance for precise medication use, the company targets the high-potential market of precision pharmaceutical services, committed to providing global medical experts and patients with higher-quality, more reliable precision medication solutions.

Commenting on the successful completion of this funding round, Chen Zhijun, Founder and Chairman of Dunen Medical, attributed the achievement primarily to the company’s core strengths in three key areas. First, in terms of business direction, Dunen Medical focuses on providing pharmaceutical care services centered on precision medication guidance, seizing the opportunity presented by the transformation of clinical pharmacy in China—a relatively innovative approach. In 2017, when China fully implemented centralized volume-based procurement, Dunen Medical was established in the same year, gaining a first-mover advantage in the market through its unique business entry point.

Secondly, in terms of business model, unlike the traditional third-party medical testing model that relies on outsourcing specimens, Dunen Medical provides localized technical services to hospitals through a co-built laboratory model.

Furthermore, Dunen Medicine boasts significant talent advantages. As the implementing entity for the “Precision Medication Research Center” under the Zhejiang Yangtze Delta Region Institute of Tsinghua University, Dunen Medicine leverages its affiliation with the Institute and the “Clinical Center for Precision Medication” to establish collaborative research talent channels with both the Zhejiang Yangtze Delta Region Institute of Tsinghua University and Tsinghua University. This provides the company with a solid foundation for industry-academia-research translation and robust talent resource advantages.

Leveraging these advantages, along with its unique insights into precision medication and years of accumulated research experience, Dunen Medicine has established a comprehensive, full-industry-chain layout to build an ecosystem centered on the entire drug lifecycle. Today, this innovative pharmaceutical care service ecosystem is beginning to yield tangible results.

2023 was a year for Dunen Medicine to refine its business model for pharmaceutical care services, strengthen its high-quality capabilities in precision medication, expand the coverage of co-built laboratories, and accelerate the construction of an industrial ecosystem for pharmaceutical care services.

First, in terms of its business model, after completing the previous round of nearly RMB 100 million in financing led by CICC Capital in 2022, Dunen Medical has closely focused on the pharmaceutical care industry ecosystem, systematically refining its business model for high-quality precision pharmacy services. This includes accelerating the establishment and promotion of co-built laboratories, strengthening scientific research service capabilities, and delivering standardized, systematic, and high-quality technical services. As a result, the company has evolved from initially achieving “feasible implementation” to now enabling “rapid deployment.”

“Our business model has been refined to a high degree of maturity, enabling faster market expansion and enhanced service capabilities,” said Chen Zhijun. “We have established model co-built laboratories in key provinces and regions such as Zhejiang, Sichuan, Hunan, and Fujian, and the nationwide network of co-built laboratories is beginning to take shape.”

In terms of products, Dunen Medicine has further enriched its product pipeline, expanding from market-essential offerings to the development of proprietary products such as drug resistance testing and genetic testing. The company currently possesses capabilities for over 200 pharmacogenetic tests and more than 200 therapeutic drug monitoring assays, with products covering disease areas including oncology, psychiatry, and cardiovascular and cerebrovascular disorders. Furthermore, in database construction, Dunen Medicine has accumulated medication data from hundreds of thousands of cases.

In terms of external collaborations, Dunen Medicine is also accelerating its connections and partnerships with both the industry and hospital sectors. On the upstream and downstream sides of the industry, Dunen Medicine has successively established strategic collaborations with companies such as Zhonghan Biology and Luoxi Medical. On the hospital side, Dunen Medicine has signed comprehensive strategic cooperation plans with local governments and hospitals, including the Zhangping Municipal People's Government, the Zigong Municipal People's Government, and the Second Affiliated Hospital of University of South China.

Moreover, Dunen Medical has obtained numerous industry qualifications, including being recognized as a Hangzhou Unicorn (Quasi-Unicorn) Enterprise by the Hangzhou Venture Capital Association, and was selected as a Zhejiang Provincial Specialized, Refined, Differential, and Innovative (“Zhuan Jing Te Xin”) Enterprise. Moving forward, the company will continue to expand its market presence and revenue scale, preparing for application to become a Zhejiang Provincial Specialized, Refined, Differential, and Innovative “Little Giant” Enterprise.

Chen Zhijun also stated that the company plans to submit its initial public offering (IPO) application to the Beijing Stock Exchange by the end of 2025, aiming for a listing in 2026. This move seeks to establish the first publicly listed company in the field of precision pharmaceutical care services, thereby contributing to the enhancement of pharmaceutical care standards and promoting the high-quality development of precision pharmaceutical care.

Wu Ziyuan, Investment Director of Jingyao Fund

Regarding this round of financing,Wu Ziyuan, Investment Director of Jingyao Fundstated: “Rational drug use is an established objective of pharmaceutical administration in medical institutions, and a key component of deepening healthcare system reform and building a Healthy China. It is crucial to establish a high-quality, multi-tiered, diversified, and leading pharmaceutical care service system. Therefore, we are highly optimistic about the pharmaceutical care sector. This optimism stems not only from its position at the intersection of two policy drivers—“the transformation of pharmaceutical care models” and “the high-quality development of public hospitals”—but also from the public’s growing demand for precise medication and targeted treatment. As the nation advances the Healthy China initiative, people’s health holds a priority strategic position and serves as an important indicator of national prosperity and strength.

Yin Haipeng, Vice President of the Hangzhou Branch of the Yangtze Delta Region Institute of Tsinghua University

Yin Haipeng, Deputy Dean of the Hangzhou Branch of Tsinghua Yangtze Delta Region Institutestated: “‘“Science and technology constitute the primary productive force, talent is the primary resource, and innovation is the primary driving force.” Dunen Medicine has proposed a novel model—the “New Integrated Pharmaceutical Care Service Platform”—which collaborates with hospitals to co-build capabilities, empower healthcare institutions, and address the needs of the general public. This innovative pharmaceutical care service enterprise is precisely what is required by China’s current national context and industry landscape. Furthermore, Dunen Medicine boasts a young and dynamic team. We highly recognize its strategic layout in the pharmaceutical care industry, and it is a key biomedical enterprise cultivated and developed by our institute. The Yangtze Delta Region Institute of Tsinghua University will continue to provide Dunen Medicine with support and services in terms of talent, technology, and platforms, hoping that Dunen will emerge as a unicorn company in this niche sector.

Since its inception, Jingyao Fund has maintained a long-term focus on two major sectors: healthcare and cutting-edge technology. We concentrate on investment opportunities in specialized vertical niches, dedicated to identifying high-growth enterprises with strong explosive potential and technological prowess within these segments. Our team has been actively tracking investment opportunities in the healthcare sector since 2013, successfully investing in companies such as Duality Biologics, Kangda Medical, and Mingkang Bio. Aligning closely with national policy directions, Jingyao Fund pursues long-term value investing, growing alongside portfolio companies to achieve a triple win for enterprises, investors, and the populations they serve.

Zhejiang Yangtze Delta Region Institute of Tsinghua University is a pioneer and leader in Zhejiang Province’s implementation of the strategy to “introduce prestigious research institutes and universities, and jointly build innovation platforms.” Since its establishment in 2003, the Institute has been based in Zhejiang and oriented toward the Yangtze River Delta region. By adopting a self-financing, market-oriented operational model, it has explored an effective paradigm for provincial-university collaboration. It has introduced and cultivated more than 1,000 high-level overseas talents for Zhejiang, making it one of the earliest launched and largest overseas talent recruitment and intelligence introduction platforms in China. In 2019, the Institute was included as the sole innovation platform in the national strategic plan, the Outline of the Integrated Development Plan for the Yangtze River Delta Region. In 2020, it was recognized as one of the “Top Ten Industry-University-Research Integration Organizations” at the national level, being the only new-type R&D institution from Zhejiang Province to receive this honor.