Junion Therapeutics Secures Tens of Millions in New Funding to Advance Innovative Chronic Disease Therapies

Recently, Xiamen Junde Medical Technology Co., Ltd. (“Junde Medical”) announced the completion of a new round of financing amounting to tens of millions of yuan, exclusively invested by Deyi Capital. The funds from this round will primarily be used for the clinical trials, registration, production, and sales of its first oral weight-loss device, as well as to accelerate the R&D progress of product pipelines across multiple core technology platforms.

Junde Medical was established in January 2021 by Dr. Luo Jingnan, a Ph.D. graduate of the National University of Singapore and a seasoned expert in drug-device combination products. The company boasts a senior R&D team with multidisciplinary expertise from both domestic and international backgrounds. It aims to develop transformative drug-device combination products and novel therapeutic approaches by integrating cutting-edge technologies from materials science, pharmaceutics, biology, engineering, and machine learning, thereby building a platform enterprise dedicated to innovative therapies for the full lifecycle management of chronic diseases. Junde Medical focuses on chronic disease areas with significant unmet clinical needs, including obesity, diabetes, psychiatric disorders, and metabolic dysfunction-associated steatotic liver disease (MASLD). Currently, Junde Medical has established R&D centers at the Singapore Science Park and the Xiamen Haicang Biopharmaceutical Port, as well as a production base in the Xiamen Xiang’an Torch High-Tech Industrial Development Zone.

Dr. Luo Jingnan, the company’s founder, has dedicated his career to research in biomaterials-based regenerative medicine and combination drug-device products, boasting extensive expertise and a proven track record in the development and commercialization of combination drug-device technologies. The company’s core team comprises scientists and PhD holders from prestigious academic institutions both in China and abroad, spanning multidisciplinary fields such as materials science, pharmacy, and engineering. Equipped with cutting-edge research methodologies and core technologies, the team brings substantial R&D experience in the medical sector.

In terms of market demand, the incidence of metabolic chronic diseases is increasing day by day with the improvement of people's living standards and changes in dietary structure. According to the Frost & Sullivan report (2021), there were 490 million diabetes patients worldwide in 2020, with China being a major country for diabetes patients, having 130 million patients; there were 1.21 billion obese people globally, with 220 million in China; and the global prevalence of MAFLD was 1.76 billion, with 193 million cases in China. Obesity and metabolic-associated fatty liver disease (MAFLD) have become chronic diseases that urgently need to be controlled. Overweight/obesity can trigger and increase the incidence of diseases such as type 2 diabetes and endometrial cancer, while MAFLD can lead to the occurrence and development of cardiovascular diseases and tumors related to metabolic syndrome. These diseases impose a heavy burden on patients' families and society.

In terms of market supply, metabolic chronic diseases present the following characteristics: First, their pathogenesis is complex and influenced by numerous factors, making existing medical interventions insufficient to meet clinical needs. Currently, there are very few drugs and medical devices approved in China for overweight/obesity indications, and no drug has yet been approved by the FDA or EMA for MAFLD/NASH indications. Second, many patients with chronic diseases require long-term medication but exhibit poor adherence; for example, in the United States, approximately 50% of medications for chronic conditions are not taken as prescribed. Consequently, there is a significant market gap for innovative treatment solutions that are effective and can improve patient adherence.

Currently, in terms of its product pipeline for chronic disease treatment, Junde Medical has established multiple technology platforms, with more than 10 products either under development or planned. Among these, the product targeting overweight and obesity based on the superabsorbent polymer technology platform is currently in the clinical trial phase and is expected to obtain a Class III medical device registration certificate in 2023.

Since its inception, Xiamen Junde Medical Technology Co., Ltd. has collaborated with top-tier international patent law firms to secure patents globally covering product technologies, manufacturing processes, packaging, methods of use, and new indications. The company actively seeks partnerships with renowned experts in medicine, materials science, and bioengineering, as well as industry-leading companies both domestically and abroad, to provide clinicians with practical and highly effective treatment solutions.

Dr. Luo Jingnan, Chairman and General Manager of Junde Medicalstated, “We extend our gratitude to Deyi Capital for its recognition and support of our team, platform technology, and the progress achieved to date. Our team firmly believes that, leveraging our continuously innovative technology platform, diverse product portfolio, and deep industry insights, the company will successfully bring its pipeline of innovative products to the global market. With the benefit of Deyi Capital’s extensive industry experience, we are committed to advancing our mission to become a global leader in full-cycle innovative therapies for chronic diseases, thereby helping hundreds of millions of chronic disease patients worldwide enjoy a high quality of healthy living.”

DeDr. Xiao Xinye, Investment Director at Deyi Capitalstated: “Healthcare is a key focus area for Deyi Capital, with innovative drug-device combination products holding significant growth potential. Dr. Luo Jingnan and his team possess deep professional expertise in materials science and life sciences, along with extensive commercialization experience, and have accomplished a substantial amount of work in a relatively short period. Deyi Capital is particularly optimistic about the team’s independent intellectual property rights, foundational platform-based innovation capabilities, and expects that such robust original innovation will yield a continuous stream of innovative products.”

Deyi Capital, established in 2016, focuses on investments in healthcare, information technology, and green industries. Its management team brings extensive experience in investment, investment banking, and industrial operations, along with broad market resources and specialized post-investment service and management capabilities. In the healthcare sector, Deyi Capital has invested in industry-leading and innovative enterprises such as Zeltis Pharmaceuticals (688266.SH), Allist Pharmaceuticals (688578.SH), Yifang Biopharma, Boyun Biopharma, Manteia Data Technology, Feishuo Biotech, Huamai Taico, Huiyi Huiying, Jingyu Medical, Jidian Biology, Shangyi Shukang, and Nuofeng Pharmaceutical.