Raynovent Secures RMB 370 Million Series C Financing to Accelerate Commercialization of Oral Antivirals for COVID-19 and Influenza

On December 30, 2022, Guangdong Raynovent Biotech Co., Ltd. (“Raynovent”) announced the completion of its RMB 370 million Series C financing round. The round was co-led by Yide Fund and Yifeng Capital, with participation from Wanlian Guangsheng and Guangzhou Guoju Venture Capital. Zhongsheng Pharmaceutical and Qichi Capital continued to make additional investments. JoyCap Capital served as the exclusive financial advisor for this financing round.

Raynovent stated that following this financing round, the company will focus on advancing clinical trials for its core R&D pipeline and commercializing its oral medications for COVID-19 and influenza A.

Established in October 2018, Raynovent focuses on the R&D of innovative drugs in the fields of respiratory and metabolic diseases. As a leading innovator in China in the areas of respiratory antivirals and NASH, it is a controlling subsidiary of Zhongsheng Pharmaceutical (002317), a well-known A-share listed company.

Raynovent, leveraging its understanding and insights into the pathophysiology of respiratory and metabolic diseases, is focused on developing novel therapies for major conditions such as influenza, COVID-19, obesity, and non-alcoholic steatohepatitis (NASH). Currently, multiple innovative drug candidates targeting obesity, NASH, and viral respiratory infections are in preclinical and clinical development. Notably, ZSP1273, the first domestically approved Class 1 chemical new drug for the clinical treatment of influenza A, and RAY1216 tablets, a specific 3CL protease inhibitor for the treatment of COVID-19, are both rapidly advancing through Phase III clinical trials.

In recent years, Raynovent has achieved rapid development and gained widespread social recognition. It has successively been ranked No. 37 on the “Top 100 Future Healthcare Companies in China · China Innovative Pharmaceuticals List” (5th Edition), selected for the “Top 30 Most Innovative Small-Molecule Drug Companies in China” for both 2020 and 2021, listed among the “Top 50 Pioneering Enterprises of the New Economy in the Guangdong-Hong Kong-Macao Greater Bay Area” in 2021, named one of the “Top 20 Deloitte China Technology Fast Rising Stars” in 2021, recognized as a “GEI China Potential Unicorn Enterprise” in 2021, honored as a “Pioneering Enterprise” among the “Top 50 Biotech Innovation Enterprises in the Guangdong-Hong Kong-Macao Greater Bay Area” (5th Edition) in 2022, and acknowledged as an “Enterprise with Investment Value” in 2022. Meanwhile, it has also been certified as a National High-Tech Enterprise and identified as a “Potential Unicorn” enterprise by the Guangzhou Development District and Huangpu District.

Dr. Chen Xiaoxin, Co-founder and President of RaynoventThe successful completion of Raynovent’s Series C financing round demonstrates the high level of recognition and confidence that investors have in Raynovent’s team and its strategic pipeline layout in core therapeutic areas, marking the company’s entry into a new phase of development. Since 2020, global public health systems have faced unprecedented challenges. Raynovent has been deeply engaged in the field of respiratory antivirals, with its core product candidates—the anti-SARS-CoV-2 3CL Mpro inhibitor RAY1216 and the anti-influenza virus RNA polymerase inhibitor ZSP1273—both rapidly advancing through Phase III clinical trials. With the support of both new and existing shareholders from this funding round, Raynovent aims to accelerate the commercialization of RAY1216 and ZSP1273, thereby bringing timely benefits to patients in China and around the world who have been severely affected by the pandemic.

Mr. Huang Qingshan, Yide FundIt was stated that Raynovent focuses on the antiviral and metabolic fields, with a core team possessing extensive experience in innovative drug R&D and management, as well as strong execution capabilities. We hope that RAY1216, a potent, broad-spectrum anti-SARS-CoV-2 3CL protease inhibitor independently developed by Raynovent with global independent intellectual property rights, will soon help China build a protective barrier against COVID-19. We endorse the company’s vision of bringing innovative therapies to patients with global respiratory and metabolic diseases, particularly viral and infectious diseases. We also appreciate Chairman Long Chaofeng and his team for their deep industry understanding, forward-looking strategic vision, and determination and commitment to innovation. Yide Fund thanks the company’s shareholders and management for their recognition. We will provide proactive value-added services to help Raynovent become a leading, world-class, science-driven innovative biotechnology company in China.

Mr. Zhu Jinqiao, Founder of Yifeng CapitalIt was stated that, as an outstanding representative of innovative drug subsidiaries independently incubated by listed companies, Raynovent has established a strong product portfolio in the fields of respiratory and metabolic diseases, and boasts an exceptional executive team led by Dr. Chen Xiaoxin. Yifeng Capital, a long-standing shareholder of the company, has maintained a positive long-term outlook on Raynovent’s development. In the area of COVID-19 therapeutics, following its significant investment and the launch of China’s first domestically produced small-molecule oral RdRp inhibitor, Yifeng Capital has continued to deepen its support. The company is now poised to potentially bring to market China’s first standalone 3CL protease inhibitor, further strengthening its anti-pandemic portfolio.

Dr. Li Bin, Founder of Qingchi CapitalIt stated that since leading the initial funding round for Raynovent in 2018, we have witnessed the Raynovent team’s exceptionally efficient R&D execution capabilities. From the influenza-specific drug candidate ZSP1273 to the COVID-19-specific drug candidate RAY1216, the company has continuously pioneered advancements in China’s antiviral field, advancing two blockbuster candidates into Phase III clinical trials within four years. Meanwhile, the team has also achieved considerable progress in R&D within the NASH and metabolic disease areas. Qingchi Capital firmly believes that Raynovent’s drug pipeline holds significant medical value. As a staunch supporter of Raynovent’s endeavors, we have consistently reinforced our investment in every financing round. Amidst the current concurrent surge of COVID-19 and influenza, we hope that Raynovent’s anti-COVID-19 3CL inhibitor, RAY1216, will complete Phase III clinical trials and reach the market as soon as possible, bringing much-needed relief to the vast patient population in China.

Wanlian Guangsheng"We are honored to participate in this round of financing for Raynovent. As a pioneer enterprise in the Guangzhou Development District, Raynovent has been dedicated to the R&D of innovative drugs in the fields of respiratory and metabolic diseases. The professionalism and execution capability of its team are impressive. In particular, regarding the development pipeline of small-molecule anti-COVID-19 drugs, the team has demonstrated professional foresight, keen insight, and exceptional execution through its accurate assessment of pandemic trends, clear understanding of the global competitive landscape for small-molecule anti-COVID-19 drug development, and firm commitment to participating in this field. We are pleased to see the rapid progress of RAY1216 in Phase III clinical trials. Amid the current severe pandemic situation, we hope that RAY1216 will be approved for market launch as soon as possible, benefiting society and the nation, and contributing Guangzhou’s strength to the fight against COVID-19!"

Mr. Yang Xi, Chairman of Guangzhou Guoju Venture Capitalstated that Raynovent possesses a differentiated product pipeline and efficient project execution capabilities, with a distinctive strategic layout in the fields of respiratory and metabolic diseases. We are highly optimistic about Raynovent’s innovative drug pipeline and look forward to leveraging this financing round to help bring its innovative drugs with significant clinical application potential to market, thereby benefiting a broad patient population.

Mr. Long Chaofeng, Chairman of RaynoventHe stated that, despite the capital winter in 2022, Raynovent’s successful completion of this financing round not only demonstrates the clinical value of our innovative product pipeline in core therapeutic areas, but also reflects the industry’s recognition and affirmation of the professional expertise and strong execution capabilities of our core R&D team. We are honored to welcome Yide Fund, Wanlian Guangsheng, and Guoju Venture Capital as new investors. We extend our sincere gratitude to our controlling shareholder and existing shareholders, Qichi Capital and Yifeng Capital, for their continued support across multiple rounds. With the joint support of both new and existing shareholders, Raynovent will continue to strive for efficient advancement of its pipeline to benefit patients!

Mr. Chen Yonghong, Chairman of Zhongsheng PharmaceuticalIt was stated that Raynovent is the core subsidiary of Zhongsheng Pharmaceutical and serves as the practitioner and pioneer in the company’s strategic upgrade. During the three-year period marked by the rampant spread of COVID-19, the Raynovent team advanced the projects RAY1216 and ZSP1273 with high efficiency and quality, achieving positive outcomes through their exceptional professionalism, steadfast dedication, and strong sense of social responsibility. This capital increase not only acknowledges the progress of Raynovent’s projects but also affirms the capabilities of its team. We will continue to fulfill our responsibilities as the controlling shareholder, allocate and coordinate resources from all parties, and make every effort to promote the comprehensive development of Raynovent’s operations.

Mr. Ding Yameng, Founding Managing Partner and Chief Operating Officer of Haoyue CapitalHaoYue Capital expressed that it was honored to serve as the exclusive financial advisor for Raynovent’s current round of financing, assisting the company in successfully completing the transaction. As an innovation leader in China’s respiratory antiviral and metabolic disease sectors, Raynovent boasts a robust pipeline featuring multiple Best-in-Class (BIC) and First-in-Class (FIC) candidates, with two blockbuster products rapidly advancing into Phase III clinical trials. The Raynovent team has earned high recognition from both new and existing investors for its pioneering, pragmatic, and highly efficient approach to R&D and clinical development, as well as its strong sense of social responsibility in addressing urgent national healthcare needs. We believe that, with capital support, the Raynovent team will further enrich its clinical-stage product pipeline, accelerate the commercialization of products pending launch, continue to deliver leading clinical solutions, and successfully capture both domestic and international markets.

Raynovent, established in October 2018, is a subsidiary of the well-known A-share listed company Zhongsheng Pharmaceutical (002317). It focuses on the research and development of innovative drugs in the fields of respiratory and metabolic diseases, positioning itself as an innovation leader in China’s respiratory antiviral and non-alcoholic steatohepatitis (NASH) sectors. Leveraging its understanding and insights into the pathophysiology of respiratory and liver diseases, Raynovent is dedicated to developing novel therapies for major conditions such as COVID-19, influenza, diabetes, obesity, and NASH. The company boasts a highly promising pipeline of innovative drug candidates: in the respiratory field, three products have entered clinical trials, with two in Phase III and one in Phase II; in the metabolic field, two products are in clinical development, including one in Phase IIb. In 2023, the company is poised to commercialize its COVID-19 and influenza A products, marking the beginning of a new phase of growth.

Yide Fund boasts an investment management team composed of successful entrepreneurs, investment bankers with extensive practical experience, and financial professionals with banking expertise. Based in the Guangdong-Hong Kong-Macao Greater Bay Area, the firm is deeply engaged in equity investments in high-tech enterprises in Guangzhou, focusing primarily on biopharmaceuticals, high-end equipment manufacturing, and new energy. While consistently delivering strong investment returns across multiple sectors, Yide Fund actively promotes industrial advancement and social development in the Guangzhou region, fostering corporate innovation and growth.

Yifeng Capital is among the earliest specialized biomedical investment firms in China. Its investment team comprises Ph.D. holders in biomedical sciences from top-tier universities both domestically and internationally. Focused on global venture capital (VC) and private equity (PE) investments in the biomedical sector, Yifeng Capital has conducted rigorous screening and invested in high-quality enterprises both within and outside China, including Chipscreen Biosciences, Frontier Biotechnologies, Ascentage Pharma, Pumen Technology, Harbour BioMed, Obio Technology, Yihong Pharmaceutical, 3D Medicines, Apexigen, and Centrexion. Leveraging its outstanding investment performance and exceptional investment research capabilities, Yifeng Capital has been honored with distinctions such as being ranked among the “Top 30 Healthcare Investment Institutions in China” by Zero2IPO.

Qingchi Capital is an investment platform focused on the healthcare and pharmaceutical sectors. Based in Hong Kong and Shanghai, we manage billions of US dollars in assets for institutional investors from around the world. Our investor base includes sovereign wealth funds, university endowments, charitable foundations, pension funds, and family offices. Adhering to a long-term investment philosophy, Qingchi Capital primarily invests in public equities and late-stage private equity projects in Asia, particularly within the Greater China region. Qingchi Capital holds a Type 9 (Asset Management) license issued by the Hong Kong Securities and Futures Commission and provides investment services exclusively to professional investors.

As an investment platform under Wanlian Securities, a Guangzhou municipal state-owned securities firm, Wanlian Guangsheng has always remained rooted in Guangzhou and deeply engaged in the Greater Bay Area. Closely aligning with the “Four Orientations” proposed by General Secretary Xi Jinping—namely, orienting toward the global scientific and technological frontier, the main battlefield of economic development, major national needs, and people’s life and health—the firm invests in outstanding enterprises with hard-tech capabilities and sci-tech innovation attributes, thereby supporting the development of the real economy and facilitating economic structural upgrading and transformation. Its investment portfolio includes Jet Biofil (688026.SH), Lifang Pharmaceutical (003020.SZ), Lushan New Materials (603051.SH), MGI Tech (688114.SH), Narui Radar (registered), Langkun Environment (approved by the listing committee), Guanghe Technology, Daoyuan Technology, Wanxietong, Weidian New Energy, Yizhi Technology, Cloud-Seq Biotech, Huilun Biology, and Xinyang New Materials, among others. Currently, several of these companies have completed initial public offerings (IPOs) or are in the IPO review queue.

Guoju Venture Capital is a wholly-owned equity private fund subsidiary of Guangzhou High-Tech Industrial Development Zone Investment Group Co., Ltd. (hereinafter referred to as “High-Tech Zone Group”), with funds under management and participation exceeding RMB 3 billion. As a key capital operation platform for the High-Tech Zone Group to strengthen government-enterprise cooperation, industry-finance integration, and investment across the entire biopharmaceutical industry chain, Guoju Venture Capital leverages the Group’s strategic layout in the biopharmaceutical and health sectors. Adopting a “fund of funds + direct investment” approach, it actively promotes investment attraction and capital deployment in the biopharmaceutical sector of Guangzhou Development District. Its portfolio companies include YunKang Group, Shengnuoji, Paitzhen Biology, ClearMed, Lingsheng Medical, and Nuwa Life. Rooted in Huangpu District, Guangzhou, and extending its reach across the Guangdong-Hong Kong-Macao Greater Bay Area, Guoju Venture Capital is committed to becoming a leading state-owned venture capital firm in the biopharmaceutical industry within the Greater Bay Area and a renowned market-oriented fund of funds manager in China.

Founded in 1979, Zhongsheng Pharmaceutical is a top-100 Chinese pharmaceutical industrial enterprise and an A-share listed company, integrating drug research and development (R&D), production, and sales. Adhering to the core value of “Patient Interests First” and the corporate mission of “Caring for Life with High-Quality Products and Promoting Public Health with Premium Services,” the company focuses on therapeutic areas including ophthalmology, cardiovascular and cerebrovascular diseases, respiratory disorders, and digestive conditions. With pharmaceutical manufacturing as its core business, Zhongsheng Pharmaceutical pursues a development path driven by both R&D innovation and marketing innovation. It has gradually established a sustainable business system characterized by innovative drugs as the growth leader, traditional Chinese medicine (TCM) preparations as the business foundation, and generic chemical drugs as a supportive pillar, striving to become a first-class pharmaceutical and health industry group in China.

Haoyue Capital, established in January 2014, is a leading industry-focused investment bank in China specializing in the healthcare sector. Headquartered in Shanghai, the firm maintains regional offices in Beijing and Shenzhen. Committed to empowering growth through capital and research-driven insights, Haoyue Capital facilitates successful connections between outstanding Chinese healthcare enterprises and the capital markets, thereby creating value-added benefits for its clients. The partnership team comprises senior investment bankers with extensive experience in China’s healthcare sector, supported by a professional team of over 70 members. Haoyue Capital closely monitors dynamics and trends in the healthcare investment market, with its research and transaction coverage spanning multiple sub-sectors, including innovative pharmaceuticals, innovative medical devices, IVD and life sciences, health services, and smart healthcare. In 2021, Haoyue Capital completed more than 50 complex transactions involving private financing, mergers and acquisitions, and spin-offs of listed companies, with a total transaction value amounting to tens of billions of RMB, securing a leading position across various healthcare sub-sectors.