Minoval Pharma Completes Over RMB 100 Million Series A Financing to Accelerate Dermatological and Psychiatric Drug Development

VCBeat has learned thatNanjing Minova Pharmaceuticals Co., Ltd. (hereinafter referred to as “Minova Pharma”) completed its Series A financing round, exceeding RMB 100 million, in July this year. The round was co-led by Huagai Capital, Lize Capital, and Jinpu Health, with existing shareholders Yuanhe Origin and Wenzhou Investment continuing to increase their investments. It is reported that the proceeds from this financing round will be primarily used to advance the preclinical research and clinical development of Minova Pharma’s innovative drugs in the fields of disfiguring diseases and mental disorders.

Established in February 2021, MINOVA PHARMA adheres to the mission of “making patients’ lives better” and is dedicated to the research, development, and industrialization of novel drugs for major diseases that severely impact patients’ quality of life, such as disfiguring conditions and mental disorders. Within less than a year and a half since its inception, MINOVA PHARMA has completed multiple rounds of financing. Its investors include listed companies such as Lifang Pharmaceutical, as well as investment firms such as Yuanhe Origin.

Why Is Capital Bullish on MINOVA PHARMA’s Development? The Answer May Lie in the Growth Potential of Its Sector and the Company’s Technological Accumulation.

MINOVA PHARMA’s product pipeline is primarily focused on two areas: mental disorders and disfiguring diseases. The decision to enter the fields of mental disorders and disfiguring diseases is related to MINOVA PHARMA’s understanding of the current market. The most critical factor, undoubtedly, isBoth categories of diseases have a broad patient population and significant market growth potential.

From the perspective of mental disorders,According to the "2021 China Health and Health Statistical Yearbook," in 2020, the number of outpatient and emergency visits by department in medical and health institutions showed that psychiatric outpatient and emergency visits reached 60,119,534. Although the number of patient diagnoses and treatments has relatively increased, the consultation rate remains low. Additionally, according to World Health Organization statistics, there are approximately 90 million patients with depression among those with mental disorders in China, with incidence rates reaching as high as 20% in certain specific populations. As life pressures increase and awareness of health science popularization improves, more patients are emerging. The decision to enter the market for mental disorders, particularly depression, stems from MINOVA PHARMA's recognition of the current lack of rapidly acting and highly safe pharmacological treatment options available on the market.

From the perspective of disfiguring diseases,The primary hospital departments involved are Plastic Surgery and Dermatology. This refers to a range of conditions that impair facial aesthetics or physical appearance, including hair loss, acne, photoaging, various types of hyperpigmentation, scars, and localized abnormal fat accumulation. The current overall market is characterized by high incidence rates and an increasingly younger patient demographic. Meanwhile, significant unmet clinical needs persist in the market. For instance, while hair loss, acne, and various forms of pigmentation and acne lesions are highly prevalent among the Chinese population, pharmaceutical companies have not prioritized R&D investment in dermatological therapies. Consequently, drugs currently used in clinical practice are largely legacy agents, associated with suboptimal efficacy, poor safety profiles, and unsatisfactory user experience. MINOVA PHARMA aims to address these gaps by developing innovative therapeutics for disfiguring diseases, thereby providing patients with optimal treatment options.

In addition to the clinical needs and market growth potential in the aforementioned disease areas, Liu Fei, General Manager and Founder of MINOVA PHARMA, also pointed out that several other factors contributed to the company’s decision to enter these fields. For instance, regarding the market for disfiguring diseases—

From the perspective of market landscapeCurrently, products in this field are mainly developed by a few multinational pharmaceutical companies such as Allergan and Galderma, leaving room for the development of domestically produced products. From a technical perspective, the relatively backward state of domestic technologies in this related field has created conditions for the development of MINOVA PHARMA.

From the perspective of disease awarenessFor Asian populations, there is strong unmet demand for treatments such as skin whitening and melasma removal. In the realm of disfiguring diseases with prominent consumer healthcare attributes, patients typically pay out-of-pocket, thereby circumventing the current commercialization and reimbursement bottlenecks faced by innovative drugs that rely primarily on medical insurance coverage.

With the market size for related diseases surpassing RMB 10 billion, MINOVA PHARMA has adopted “Better Life” as its development theme, strategically focusing on two pipelines: “Mental Well-being” and “Physical Appearance.” By leveraging advanced technology, the company provides users with safer and more reliable products. This strategic layout is underpinned by MINOVA PHARMA’s core competencies.

In the view of Dr. Liu Fei,MINOVA PHARMA’s ability to secure financing is attributable to its strategic focus on key therapeutic areas, extensive R&D expertise, and robust platform technology capabilities.

From the perspective of market segments, historically, capital investment in domestic innovative drug R&D has focused more on therapeutic areas that pose severe threats to patients’ lives, such as oncology and cardiovascular diseases. In recent years, however, specialty drugs in fields like ophthalmology and dermatology have begun to attract investor attention and favor. On one hand, the public’s pursuit of a better quality of life has driven further development of consumer healthcare; on the other hand, the therapeutic segments currently pursued by MINOVA PHARMA, which possess consumer-oriented attributes, offer substantial market growth potential and are less affected by policies such as medical insurance cost containment.

From an R&D perspectiveMINOVA PHARMA boasts a distinct talent advantage. Currently, the company employs over 60 staff members, with more than 50 dedicated to R&D, including six PhDs and over 20 master’s degree holders. MINOVA PHARMA has established a comprehensive team structure covering medicinal chemistry, formulation, quality control, biological evaluation, intellectual property, regulatory affairs, clinical management, and project management. Furthermore, the core team has worked together for over a decade, honing their capabilities through more than ten R&D projects, which has fostered strong execution skills and resilience in tackling challenging tasks. Notably, this core team consists primarily of professionals born in the 1980s who possess extensive local experience. They also maintain a global perspective, having led the development and clinical trials of multiple new drugs targeted for development and registration in mature markets such as Europe and the United States.

It may be necessary to provide additional clarification:Dr. Liu Fei, the founder of MINOVA PHARMA, earned his Ph.D. from China Pharmaceutical University. At Simcere Pharmaceutical, one of the earliest pharmaceutical companies in China to engage in innovative drug R&D, Dr. Liu served as the Director of the Medicinal Chemistry Department. In this role, he led a team that collaborated with numerous overseas-returnee scientists to develop novel drugs targeting JAK, SYK, BRAF, and other targets. When Simcere established its Baijiahui incubation platform, Dr. Liu co-founded Nanjing Sinuotai Pharmaceuticals with colleagues in 2013. In 2014, Dr. Liu’s team embarked on a second entrepreneurial venture by partnering with Dr. Chen Zhiming, a legendary figure in the global field of drug formulation, to establish Nuoruite (with operations in Nanjing and Hefei). The company initiated and pursued dozens of improved new drug projects, advanced five new drugs into clinical stages, and successfully completed patent challenges for several complex generic drugs. Throughout this process, the team focused on therapeutic areas such as psychiatric disorders and dermatological conditions. Leveraging their unique understanding of value assessment in new drug development for specialized departments like psychiatry and dermatology, they launched their third entrepreneurial venture in 2021 by founding MINOVA PHARMA.

From the perspective of the technical platformMINOVA PHARMA has established multiple technical platforms in the fields of molecular structure innovation and complex formulations, enabling the flexible application of various medicinal chemistry and formulation technologies to develop innovative drugs that meet patients' clinical needs. MINOVA PHARMA categorizes its technological capabilities under the “Phenotypic Drug Discovery and Industrialization Platform Based on Natural Small Molecules.” This industrialization platform encompasses multiple technical sub-platforms, including phenotypic drug screening, total synthesis of natural products, structural modification of natural products, and novel drug delivery systems, allowing for the development of active ingredients with optimal efficacy and the most optimized drug delivery methods for different indications.

Unlike the strategies of other innovative pharmaceutical companies,Since its inception, MINOVA PHARMA has been considering the issue of commercialization implementation.To expedite the commercialization of its products, MINOVA PHARMA has chosen a development path aligned with its core strengths. Leveraging years of practical experience, the company identifies “micro-innovation” products that meet patients’ clinical needs and align with regulatory incentives. This approach enables new drug development under relatively controllable risks, and the concept of “micro-innovation” is also the origin of MINOVA PHARMA’s name.

Liu Fei clearly pointed out, “Start-up biotech companies must develop their own technological strengths and product characteristics to find a path for survival and growth that suits them. For start-up drug development enterprises, it may be necessary in the short term to re-evaluate product portfolios, carefully streamline pipelines, concentrate resources on advancing higher-priority candidates into late-stage clinical trials or toward market approval, and adopt conservative financial planning.” This cautious approach to development has also yielded certain positive results.

Currently, MINOVA PHARMA has one blockbuster drug for disfiguring diseases in Phase III clinical trials, which is expected to become the first locally administered lipolytic agent approved in China; one innovative drug for psychiatric disorders has submitted a clinical trial application; and multiple products are in preclinical development, with expectations to enter clinical studies sequentially in 2023.

For MINOVA PHARMA, the completion of this round of financing will enable the advancement of five new drug pipelines, which were previously initiated and are currently undergoing preclinical research, into the clinical stage. In the later stages, MINOVA PHARMA will develop its strategy based on specific circumstances. After the drugs are launched, the company will comprehensively evaluate its financial and personnel resources at that time, first establishing a foothold locally by prioritizing the domestic market before considering whether to expand into overseas markets.

In fact, MINOVA PHARMA plans to build a product matrix integrating pharmaceuticals, medical devices, and cosmetics around its drug portfolio, with the ultimate goal of growing into a biopharma company in relevant sectors.To achieve this goal, MINOVA PHARMA plans to continuously strengthen its R&D, clinical, and manufacturing teams, gradually build and refine its sales team, and explore sales models tailored to the unique characteristics of its products.

While upholding its vision of “First in China, Best in the world,” MINOVA PHARMA also expressed its hope to collaborate with industry research institutes and universities to drive the discovery of new targets and mechanisms, thereby further benefiting patients worldwide.

Zhu Jingyang, Deputy Investment Director at Huagai CapitalHe stated, “Serious consumer healthcare combines the characteristics of both consumer goods and medical services. On one hand, unlike pharmaceuticals and consumables, it faces less pressure from centralized procurement, resulting in a smaller impact on the payment side. On the other hand, compared to ordinary consumer goods, serious consumer healthcare products have extremely high barriers to entry, offering greater growth stability and making them more resilient across market cycles. Historical economic fluctuations show that consumer healthcare companies demonstrate more stable revenue growth compared to general consumer sectors and broader market indices. MINOVA PHARMA focuses on the development of new drugs for mental disorders and disfiguring diseases, positioning its products as therapies and medications with consumer attributes. Its core technical team has collaborated for over ten years; under the leadership of Dr. Liu Fei, they have spearheaded the R&D and clinical trial applications in both China and the United States for more than ten products, demonstrating exceptional synergy and cohesion. Within just two years, the company’s first product has entered Phase III clinical trials, reflecting highly efficient execution and operational strength. Finally, we are delighted to lead this investment round in MINOVA PHARMA. We look forward to creating synergies between MINOVA and Huagai Capital’s ecosystem, supporting the company’s development across multiple dimensions—including product R&D, corporate partnerships, market expansion, and commercialization—so that its products can benefit patients at an early stage.”

Cheng Xiakai, Managing Director of Lize Capital“MINOVA PHARMA, as a leading new drug R&D enterprise in China’s consumer healthcare sector, has established highly differentiated innovative drug pipelines in two niche segments. The company has completed preclinical validation for multiple products and will sequentially enter the clinical trial application phase. We look forward to the early approval and market launch of these products, thereby benefiting the growing patient population in China.”

Miao Yu, Partner at Jinpu Health“MINOVA PHARMA, as a leading enterprise in China’s consumer healthcare sector, possesses unique insights and project initiation strategies regarding unmet clinical needs and products in the medical field. The company has conducted thorough and meticulous validation of its product pipeline, effectively controlling R&D risks. We believe that under the leadership of Dr. Liu, MINOVA will bring more high-quality products to China’s pharmaceutical industry.”

Dr. Liu Fei, Founder of MINOVA PHARMA“He expressed his delight at gaining recognition from renowned professional investment firms, including Huagai Capital, Lize Capital, and Jinpu Health, and extended his gratitude to existing shareholders, Yuanhe Origin and Wenzhou Investment, for their unwavering support. This round of financing will propel the company’s novel drug pipeline in the fields of mental health and disfiguring diseases into comprehensive clinical development, with the aim of providing global patients with more innovative treatment options at an earlier stage.”

Huagai Capital was established in 2012 as a private equity investment firm co-founded by professionals from renowned domestic and international investment institutions. With the vision of “becoming the most trusted capital partner for entrepreneurs and investors,” the company focuses on private equity investments in the healthcare and technology sectors, dedicated to fostering the growth of small and medium-sized enterprises into industry leaders. Currently, the firm manages approximately RMB 20 billion in assets, with 24 of its portfolio companies successfully listed.

Lize Capital, established in 2014, is a private equity investment firm dedicated to the healthcare industry. It currently manages three funds denominated in US dollars and RMB, with total assets under management approaching RMB 4 billion. Lize Capital invests globally in ventures founded by outstanding entrepreneurs, high-quality assets, and cutting-edge technologies, with a particular focus on addressing unmet medical needs and tapping into the vast market potential in China. Its portfolio includes industry-leading and innovative companies such as Chipscreen Biosciences, Chentai Pharmaceuticals, Moga Biologics, Neurelis, Wugen, MicroTech Medical, TianGuangShi Biologics, Hanyu Medical, Qingyun Technology, Nuomai Medical, Qpex Biopharma, and Jumpcode. Leveraging its expertise and global network, Lize Capital adds value to its portfolio companies and helps them develop innovative solutions for unmet medical needs, fostering innovators that meet international standards.

Jinpu Health Fund, established in April 2015, is a specialized private equity fund under Jinpu Investment, focusing on equity investments in the healthcare and medical industry. The fund manages assets exceeding RMB 2 billion. Its investment scope covers biotechnology and pharmaceuticals, medical devices, in vitro diagnostics (IVD), and healthcare services. Committed to being a discoverer and creator of value, the fund’s partners possess over 15 years of experience in either private equity investment or the healthcare sector. Team members hold master’s or doctoral degrees from renowned universities both in China and abroad, with professional backgrounds spanning molecular biology, pharmacy, clinical medicine, biomedical engineering, finance, and law. The two consecutive funds managed by the team have both received investments from the National Council for Social Security Fund (NCSSF) and the China Development Bank. Notably, this team was the first to secure investment from the NCSSF, pioneering the entry of Chinese pension funds into private equity funds.

MINOVA PHARMA was established in February 2021. The company boasts a core team with over 10 years of collaborative experience in new drug R&D, having led the development and regulatory submissions for multiple new drug candidates in both China and the United States. Distinguished by its integration of molecular structural innovation with novel drug delivery systems, MINOVA PHARMA has built a “phenotypic drug discovery and industrialization platform based on natural small molecules.” The company excels at translating source innovations in biological sciences into innovative drugs with superior clinical efficacy and high safety profiles, thereby providing patients with better therapeutic options.