Sanyou Bio Completes Tens of Millions of RMB Series B+ Financing Led by Huatai Zijin to Accelerate Upgrades of Its Innovative Antibody Drug Discovery Platform

Shanghai, China, August 2, 2022. Sanyou Biopharmaceuticals Co., Ltd. announced the completion of its Series B+ financing round, raising tens of millions of RMB. The round was led by Zijin Hongyun Fund and Huatai Guoxin Fund, both under Huatai Zijin (Jiangsu) Equity Investment Fund. Existing shareholder LH Ventures made an additional investment, while Shenzhen QianhaiBeizeng Asset Management Co., Ltd. and Mr. Xia Guohai participated as co-investors.

The proceeds from this financing round will be used to strengthen the construction of an integrated R&D platform for innovative antibody drugs, consolidate the leading advantage of its ultra-large-scale innovative antibody drug discovery platform (with a pipeline valued at over RMB 1 trillion), launch an intelligent innovative antibody drug discovery platform, complete the construction of Phase II of the R&D center, and accelerate the development of international business.

Previously, the company completed its Series A and Series B financing rounds in May 2020 and June 2021, respectively. The continued favor from investors serves as a strong endorsement of the company’s innovation capabilities, platform development, and entrepreneurial team. Investors in this round expressed strong confidence in Sanyou Biopharmaceuticals’ integrated innovative antibody drug platform, its ultra-large-scale innovative antibody discovery platform with a capacity of over one trillion, and its intelligent innovative antibody drug discovery platform, expecting further breakthroughs in technological innovation. The participation of new investors in this round will accelerate Sanyou Biopharmaceuticals’ path to the capital markets, holding significant importance for the company’s development.

Since its establishment in 2015, Sanyou Biopharmaceuticals has been committed to building an internationally leading, high-quality, high-throughput, and integrated R&D and value translation platform for innovative antibody drugs. After seven years of rapid development, the company has grown from an initial team of three to a professional workforce of approximately 300 employees, over 70% of whom hold doctoral or master’s degrees. The team possesses comprehensive experience in the R&D and industrialization of innovative drugs. The R&D facility has expanded from just over 100 square meters to more than 20,000 square meters, establishing an advanced and fully equipped R&D center and pilot-scale laboratory for innovative antibody drugs. The company has created the Super Trillion Antibody Library (STAL), an industry-leading platform for discovering innovative antibody drugs that seamlessly integrates a “super-trillion phage display antibody library” with “high-throughput mammalian cell expression technology.” Furthermore, Sanyou Biopharmaceuticals has established more than 40 integrated core technology platforms covering innovative antibody drug discovery, optimization, production cell line construction, upstream and downstream process development, preclinical R&D, and industrialization development.

Sanyou Biopharmaceuticals aims to provide integrated solutions featuring “differentiated CRO, innovative CPO, and specialized CRS.” Its CRO business covers six categories of comprehensive CRO services, 11 categories of specialized CRO services, and 11 categories of phase-specific CRO services, encompassing all aspects of preclinical R&D. The CPO business offers six collaboration models, including targeted preliminary research and collaborative R&D, to better meet personalized R&D needs. The CRS portfolio comprises four core categories of reagents: proteins, antibodies, cells, and diagnostic reagents, with thousands of existing products that are continuously expanding. Currently, the company is concurrently conducting hundreds of preliminary research, collaborative, and comprehensive service projects, and has established friendly business partnerships with nearly 400 pharmaceutical companies, drug R&D institutions, and diagnostic reagent product companies worldwide.

Dr. Lang Guojun, Founder and CEO of Sanyou Biopharmaceuticalsstated, “We are deeply honored that our company has secured support from top-tier domestic investment institutions. We extend our sincere gratitude to both new and existing investors for their recognition and support of Sanyou Biopharmaceuticals. Sanyou Biopharmaceuticals will fully leverage this round of financing to accelerate the construction and continuous upgrading of its three major platforms: the ‘Integrated Platform for Innovative Antibody Drugs,’ the ‘Ultra-Scale Platform for Innovative Antibody Drug Discovery (with a capacity exceeding ten trillion),’ and the ‘Intelligent Platform for Innovative Antibody Drug Discovery.’ Driven in parallel, these ‘Three Major Platforms’ will comprehensively address the critical shortage of high-quality candidate molecules for innovative antibody drugs, seamlessly integrate all stages from ‘target identification to Investigational New Drug (IND) application,’ and lead the development and transformation of the ‘Collaborative Innovation Business Model.’ This will enable all entities and individuals committed to innovative drug R&D to utilize Sanyou’s open platform in a ‘better, faster, and more confident’ manner, develop higher-quality innovative drugs, realize their new drug development aspirations, and ultimately benefit patients worldwide.”

Zhang Quanyuan, Head of Healthcare Investment, Managing Director, and Fund Partner at Huatai Zijin“It stated: ‘Sanyou Biopharmaceuticals is an industry-leading R&D service platform for innovative macromolecular drugs. The company’s team, led by Dr. Lang Guojun, has been deeply engaged in drug discovery for many years, accumulating extensive R&D service experience and demonstrating impressive execution efficiency. The company has served numerous mature pharmaceutical and biotech enterprises both domestically and internationally, achieving rapid growth and widespread industry recognition. We are optimistic about the company’s future development and look forward to its continued progress in empowering the development of innovative macromolecular drugs, helping to address unmet clinical needs, and benefiting a broad patient population. Huatai Zijin (Jiangsu) Equity Investment Fund will continue to uphold its investment philosophy of “growing together with entrepreneurs,” leveraging its own resources to consistently support the company’s development.’”

Zheng Yu, Vice President of LH Ventures“It stated: ‘Sanyou Biopharmaceuticals has accumulated many years of experience in the field of innovative antibody discovery, providing high-quality services and creative solutions to numerous clients both domestically and internationally. The company continues to strengthen its integrated R&D service platform, constantly enhancing the platform’s automation, intelligence, and internationalization levels, while improving its CRO+CPO+CRS layout to consolidate its leading position in the industry. We are delighted to see the team continuously evolve and forge ahead under the leadership of Dr. Lang, particularly impressing us by overcoming difficulties and sticking to their posts during the pandemic. We look forward to and believe that the company will continue to reach new heights and achieve more positive progress in the future.’”

Cheng Siyi, Partner and Head of Investment Department at Qianhai Beizeng Asset Management“The statement read: ‘Sanyou Biopharmaceuticals is an internationally leading platform enterprise dedicated to the research, development, and services of innovative antibody drugs. The company’s team possesses comprehensive experience in innovative drug R&D and industrialization, having established over 40 innovative technology platforms covering antibody discovery and optimization, production cell line construction, upstream and downstream process development, and preclinical research. We are deeply impressed by Sanyou Biopharmaceuticals’ commitment and execution capability in helping clients develop innovative antibody drugs with higher quality and greater efficiency, and we look forward to the company contributing more innovative strength to the prevention and treatment of human diseases. The company’s operations align closely with the investment philosophy of Beizeng Asset Management, and we are honored to participate in and support the future development of Sanyou Biopharmaceuticals.’”

Investor Xia Guohaistated: “As an expert in the R&D of innovative antibody drugs, Sanyou Biopharmaceuticals has built an integrated R&D platform for innovative antibody therapeutics at a globally leading level. I believe that under Dr. Lang’s leadership, the company will continue to independently develop new technologies and products, thereby continuously strengthening its core competitiveness. I hope that Sanyou Biopharmaceuticals will forge ahead, strive for excellence, and achieve even more remarkable accomplishments in the future.”

Huatai Zijin is a wholly-owned subsidiary of Huatai Securities (601688.SH) engaged in private equity investment. Leveraging the full business chain advantages of Huatai Securities and adhering to the investment philosophy of “growing with entrepreneurs,” the company provides comprehensive capital services to its partners by drawing on its abundant financial and industrial resources. With a registered capital of RMB 6 billion and assets under management exceeding RMB 50 billion, Huatai Zijin manages multiple funds, including PE, M&A, FOF, and industry-specific funds.Huatai Zijin maintains a clear industry focus, basing its investments on rigorous sector research and deeply cultivating strategic emerging industries such as healthcare and TMT, thereby accumulating extensive industry experience and resources. Its healthcare investment portfolio includes Mindray Medical (300760), WuXi AppTec (603259.SH/2359.HK), RemeGen (09995.HK), Getein Biotech (603387), BrightGene Bio-medical Technology (688166), Addex Therapeutics China (688488), Bioswamp (688399), Shuyu Civilian Pharmacy (301017), Lifetech Scientific (688389), HeartCare Medical (2160.HK), Vazyme Biotech (688105), Geneseeq, EcoCyte, Sepax Technologies, Xinqing Medical, Yestar, and Happy Dental.By fully leveraging the capital operation advantages of the securities firm ecosystem, Huatai Zijin has facilitated the successful listing of numerous portfolio companies on the A-share and H-share markets. By providing comprehensive support to industry leaders, the company has established industry-leading capabilities in industrial investment and mergers and acquisitions.

LH Ventures, established in 2018, currently manages multiple RMB and USD funds with assets under management totaling RMB 2.5 billion. Backed by an experienced management team, the firm has helped numerous portfolio companies achieve successful listings on the A-share market and NASDAQ, delivering internal rate of return (IRR) figures that rank among the top in the industry. With a global perspective, LH Ventures specializes in value-add investing and adheres to long-term value investment principles, focusing deeply on key sectors such as intelligent technology and biomedicine. Operating across both China and the United States, the firm leverages capital to drive industrial consolidation and has built a comprehensive ecosystem around core industries in China.

Shenzhen QianhaiBeizeng Aset ManagementCo.,LTD specializes in investments within the broader healthcare sector. Its founder brings over 30 years of experience in research and development as well as operational management in the biopharmaceutical industry. Since its establishment in 2016, the company has set up and managed eight funds. Adhering to the philosophy of “focusing on innovation, discovering value, and providing post-investment empowerment,” it integrates industry-derived investment principles with market-oriented value assessments to identify and nurture China’s most outstanding and high-growth innovative enterprises. By leveraging its own resources and capabilities, the company delivers value-added services to portfolio companies, thereby accelerating their development and enhancing their value.

Sanyou Biopharmaceuticals is a high-tech biotechnology enterprise focused on the research and development of innovative antibody drugs and related services. The company is committed to building an internationally leading, integrated platform for high-quality, high-throughput R&D and value translation of innovative antibody therapeutics. It aims to construct a business ecosystem encompassing therapeutic, R&D, and diagnostic products and services, collaborating with global biopharmaceutical, diagnostic, and drug development companies to open new frontiers in the diagnosis and treatment of human diseases.

Sanyou Biopharmaceuticals has established an integrated R&D laboratory for innovative antibody drugs, spanning over 20,000 square meters and equipped with advanced and comprehensive facilities. The company has built more than 40 core innovation technology platforms, represented by its series of trillion-level phage display antibody libraries, covering innovative antibody drug discovery, optimization, production cell line construction, upstream and downstream process development, preclinical R&D, and industrialization. It has formed a business system integrating “differentiated CRO, innovative CPO, and specialized CRS.” The company continuously introduces new technologies, products, services, and scenarios that embody the “Three Excellences”: best quality, fastest speed, and highest cost-performance ratio. Sanyou Biopharmaceuticals has established friendly business partnerships with nearly 400 pharmaceutical companies, drug R&D institutions, and diagnostic reagent product companies worldwide.