Yineng Pharmaceutical, a Leading TCM CXO, Completes Over RMB 100 Million Series A Funding Round to Advance Modernization and Innovation in Traditional Chinese Medicine
VCBeat has learned that Hunan Yineng Biopharmaceutical Co., Ltd., a leading Chinese medicine CXO enterprise, has completed a new round of financing exceeding RMB 100 million.This funding round marks the largest financing event in the traditional Chinese medicine (TCM) CXO industry since the pandemic., led by the Guangdong Traditional Chinese Medicine (TCM) Big Health Fund with participation from Huaige Capital, marking a milestone in the industry. The funds raised in this round will be primarily used to further strengthen the company’s R&D capabilities, establish an intelligent TCM R&D base, and build a more competitive TCM research and development platform.
Yineng Pharma is a national high-tech enterprise specializing in the development of new traditional Chinese medicine (TCM) drugs and natural medicines. As one of the few digital-intelligent TCM CXO providers globally, it offers one-stop, end-to-end technical services for new TCM drug development, clinical trials, and manufacturing to pharmaceutical companies worldwide. Through years of accumulation and expertise, Yineng Pharma has grown into one of China’s largest TCM CRO enterprises, with its technological capabilities, talent pool, and infrastructure ranking among the top in the industry nationwide.
Since its establishment, Yineng Pharmaceutical has completed the development and research of 83 classical prescriptions and 22 innovative traditional Chinese medicine (TCM) drugs, successfully registered 56 hospital preparations, established standards and scaled up production processes for nearly 400 single-herb formula granules, and accumulated hundreds of thousands of batches of research data on reserved medicinal materials, decoction pieces, and pharmaceutical preparations.
Dr. Yi Yueneng, Founder and Chairman of Yineng PharmaceuticalHe stated, “This signing holds significant importance for strengthening Hunan-Guangdong cooperation, advancing key projects, and achieving mutual benefits and win-win outcomes. It also plays a crucial role in expanding Yineng Pharmaceutical’s R&D scale and enhancing its digital and intelligent capabilities in traditional Chinese medicine (TCM). Moving forward, we will deepen our collaboration with the Guangdong TCM Big Health Fund and Huaige Capital to establish global leadership in TCM innovation, create new growth poles for the innovative development of TCM, inject new momentum into higher-quality regional integrated development, and continuously contribute Chinese wisdom to building a global community of health for all. We are committed to becoming a model for quality improvement, efficiency enhancement, and transformation and upgrading in China’s TCM industry.”
Yineng Pharma is a typical multidisciplinary enterprise integrating medicine, pharmaceuticals, and engineering. It was founded in 2009 by Dr. Yi Yueneng, a doctoral supervisor at the School of Basic Medical Sciences of Central South University and a distinguished lecturer at the NMPA Advanced Training Institute. Dr. Yi has 10 years of experience as a clinical pharmacist in hospitals and 17 years of experience in new drug research and development and regulatory submission. He has presided over the completion of seven national-level scientific and technological projects, including the Ministry of Science and Technology’s 973 Program, the Ministry of Science and Technology’s 12th Five-Year Plan Major New Drug Creation Project, and the China Postdoctoral Science Foundation, and has secured approval for 16 drug production licenses.
Yineng Pharmaceutical has established an expert team for the design of new traditional Chinese medicine (TCM) drugs, led by academicians, and formed a research-oriented medical talent team with over 15 years of experience in TCM drug R&D and regulatory submission. Bringing together experts, professors, and PhDs from prestigious domestic universities and leading enterprises in the field of TCM, the company provides end-to-end services covering TCM development, marketing, and production.
Yineng Pharmaceutical is also a technology-driven R&D enterprise, with R&D personnel accounting for as high as 92% of its workforce. Through the relentless efforts of its professional team, Yineng Pharmaceutical has established robust technological barriers and built a full-chain technology platform comprising an RWS-based intelligent clinical trial platform for new drugs, six major disease-focused new drug research platforms, and six core technology platforms.Joint Development and Application of an Intelligent Auxiliary System for TCM Syndrome Differentiation and Treatment with AI Scientists from Research Institutes, to map out pathways for evaluating the efficacy and elucidating the mechanisms of action of Traditional Chinese Medicine.
Yineng Pharmaceutical has also established a 6,000-square-meter automated R&D laboratory for new traditional Chinese medicine (TCM) drugs, enabling automated processes such as extraction and decoction of TCM raw materials. The facility performs a series of operations, including safe material introduction, flexible gripping, intelligent transport, sample addition and mixing, reaction analysis, and recovery processing.
Currently, Yineng Pharmaceutical has established quality standard research platforms for authentic medicinal materials in multiple provinces and municipalities, including Hunan, Yunnan, Hainan, and Guangxi. The company possesses twenty traditional Chinese medicine (TCM) processing research platforms covering techniques such as stir-frying, honey-frying, calcining, and blanching; thirty traditional TCM formulation process platforms for preparations like powders, mixtures, ointments, and pills; as well as modern TCM formulation process platforms for tablets, capsules, dripping pills, micro-pills, and nanocrystals.
It is worth mentioning that Yinneng PharmaPioneering the “Cloud Pharma Intelligent Research” End-to-End System for New Traditional Chinese Medicine Drug Development, covering areas from network pharmacology and laboratory automation to intelligent project management, patient recruitment, and optimized clinical trial design, innovatively applying AI technology throughout the entire R&D process of traditional Chinese medicine.
Meanwhile, this end-to-end system for the development of new traditional Chinese medicine (TCM) drugs is also a key component of Yineng Pharma’s YPM platform. The YPM platform is a management software system independently developed by Yineng Pharma, comprising a project management platform, an AI-driven quality management system, and an R&D big data platform.
Among these, Yineng Pharmaceutical’s comprehensive R&D platform has generated extensive big data, covering over 200 traditional Chinese medicine (TCM) development processes, research on more than 600 medicinal materials, and studies of over 100 classical formulas. It boasts internationally leading databases for TCM and ethnic medicinal materials, formula–syndrome efficacy, and network pharmacology, thereby laying a solid data foundation for the development of new TCM drugs.
Yineng Pharma is also leveraging its “Two Platforms, One System” architecture to deliver precision services, standardized management, real-time research progress tracking, and transparent information insights to over 100 medical institutions and domestic and international traditional Chinese medicine (TCM) enterprises.
It is understood that upon completion of this round of financing,Yineng Pharma will adhere to the strategic plan of “expanding scale and capturing market share,” aiming to cover 400+ pharmaceutical companies and hospitals in 2023, advance the R&D of 20 exclusive MAH combination new drugs, and submit five clinical trial applications.
Liu Jiangbo, Chairman of the Guangdong Traditional Chinese Medicine Big Health FundIt was pointed out: “The report to the 20th National Congress of the Communist Party of China proposed ‘promoting the inheritance, innovation, and development of Traditional Chinese Medicine (TCM).’ On February 10, 2023, the General Office of the State Council issued the Implementation Plan for Major Projects on the Revitalization and Development of TCM, further clarifying the development pathway for projects focused on the inheritance, innovation, and modernization of TCM. The Guangdong TCM Big Health Fund, committed to serving national strategies and promoting high-quality development of TCM, has strengthened its layout in key areas and weak links, accelerating the modernization, industrialization, and internationalization of TCM. In recent years, Yineng Pharma has seized industry development opportunities, vigorously carried out R&D activities, integrated into the national strategic plan for TCM industry development, achieved breakthroughs in specific fields, and contributed to advancing TCM innovation, establishing itself as a representative domestic TCM CXO enterprise. In the future, we will deepen our cooperation with Yineng Pharma, strengthen the construction of a technological innovation system for TCM, jointly promote the transformation of in-hospital preparations, and support the high-quality development of the TCM cause.”
Among various investment directions, the field of inheritance and innovation in traditional Chinese medicine has been a key sector for HuaiGe Capital to focus on and invest heavily in recent years."Traditional Chinese medicine (TCM) R&D, particularly for innovative TCM products, involves complex processes, imposes high comprehensive requirements on enterprises, and presents significant development challenges. As a result, professional contract research and manufacturing organizations (CXOs) have increasingly become an essential pillar supporting industry growth. 'During our search for suitable investment targets, we had the privilege of connecting with the Eneng team. We highly recognize Eneng’s profound foundational technological capabilities in new TCM drug development, its extensive experience in commercialized delivery, and its strong team execution capability. This alignment naturally facilitated the successful closure of this financing round,' stated Huai Ge Capital."
About Yien Pharma
Yineng Pharma is a leading domestic one-stop, full-process platform empowering the development of new traditional Chinese medicine (TCM) drugs, clinical trials, and production technologies. As a national high-tech enterprise focused on the development of new TCM drugs and natural medicines, it has grown into one of China’s largest CROs specializing in TCM after years of accumulation and consolidation, with its technical capabilities, talent pool, and hardware infrastructure ranking among the top in the industry nationwide.
Yineng Pharmaceutical currently boasts a team of over 300 scientific and technical experts led by academicians, along with digital-intelligent automated R&D laboratories backed by hundreds of millions in investment. The company has provided TCM new drug development and technology empowerment services to more than 100 enterprises and institutions across China. It has completed the development and research of 83 classical prescriptions and 22 innovative TCM drugs; successfully registered 56 hospital preparations; and established standards and scaled up production processes for nearly 400 single-herb formula granules. Yineng has accumulated hundreds of thousands of batches of research data on medicinal materials, decoction pieces, and preparations, and has assisted clients in securing approvals for TCM protected varieties and revising package inserts, among other achievements.
About the Guangdong Traditional Chinese Medicine Big Health Fund
As the first traditional Chinese medicine (TCM) fund in China initiated by state-owned capital, the Guangdong TCM Great Health Fund was jointly established in 2021 under the guidance of the National Administration of Traditional Chinese Medicine. The founding partners include CDB Capital, a wholly-owned subsidiary of China Development Bank; Guangdong Hengjian, Guangdong’s state-owned capital operation platform; and the Guangzhou Development District. The fund has a total size of RMB 30 billion, with an initial closing of RMB 5 billion. Leveraging the developmental finance strengths of China Development Bank and the systemic resource advantages of Guangdong Province, the fund supports the research and development, translation, and industrial commercialization of technologies related to the TCM industry. It also appropriately expands the connotation and extension of the TCM sector, aiming to deliver high-quality products and services to China’s broader great health industry.
About Weigao Capital
Founded by Mr. Wang Kai in 2017, HuaiGe Capital is a professional investment firm specializing in the healthcare and biotechnology sectors, with offices in Shanghai and Chengdu. The team possesses extensive industry background and expertise in venture capital/private equity investment and capitalization operations. HuaiGe Capital has invested in more than 20 high-quality enterprises, including Kangdelai Medical Devices (1501.HK), Cofoe Medical (301087.SZ), Weilizhibo, Zhidao Biology, Zhongyi Anke, Respry, Shengsi Biotech, Huajian Future, Ruiyi Technology, Hanling Medical, and Junsai Bio.
Guided by the spirit of “cherishing lofty aspirations while gathering nearby talents, and investigating things to extend knowledge,” Huaige Capital employs a dual-engine investment strategy of “VC investment” plus “industry empowerment” to create maximum investment value for its investors and portfolio companies.