Resproly Secures Over RMB 100 Million in Series B+ Financing to Advance Inhaled Drug Clinical Development
Recently, Zhuhai Resproly Biopharmaceutical Co., Ltd., a leading domestic R&D enterprise for high-end inhaled formulations, completed over RMB 100 millionBround of financing, led by Qianhai Fund of Funds and followed by Fuhui Venture Capital. It is understood that the funds raised in this round will be primarily used to advance clinical studies for existing pipeline candidates, expand the professional team, and promote innovative drug research and development. Huashang Law Firm served as the legal advisor for this financing.
Previously, Resproly announced in February 2021 that it had completed a Series B financing round of nearly RMB 200 million. Currently, primary market investment and financing in the biopharmaceutical sector are at a cyclical low. Resproly’s completion of two major funding rounds within just one year demonstrates the strong comprehensive capabilities of its core team and reflects investors’ firm confidence in the inhaled formulation sector.
Resproly, founded in 2018 by Dr. Chen Yongqi, a seasoned pharmaceutical expert, is an integrated enterprise specializing in the R&D, manufacturing, and sales of formulation technologies and devices for respiratory inhalation drug delivery. To date, Resproly has established four major R&D and production platforms for inhaled formulations: metered-dose inhalers (MDIs), dry powder inhalers (DPIs), nebulizer solutions, and nasal sprays. Its pipeline under development covers a comprehensive range of respiratory products, addressing high-demand therapeutic areas such as asthma, chronic obstructive pulmonary disease (COPD), and central nervous system disorders.
It is reported that Resproly’s first generic product, RSG0101, will complete its bioequivalence (BE) filing within the year and subsequently enter clinical trials, with a potential market launch as early as 2023. In addition, Resproly plans to advance two other high-end inhalation formulations into the clinical trial stage in 2022.
Dr. Chen Yongqi, Chairman of Resproly, expressed gratitude to new and existing investors for their trust and support in Resproly’s technology and team, as well as for their profound understanding of the development trends in the niche sector of high-end inhalation formulations. Resproly has always emphasized the principles of “being pragmatic in planning, entrepreneurial endeavors, and personal conduct.” The company continues to welcome ongoing oversight from its shareholders and board members to safeguard its growth. After nearly four years of dedicated effort, Resproly has established a notable presence in China’s high-end inhalation formulation sector. Its technology platform and R&D pipeline have been continuously iterated and upgraded. We are confident that Resproly’s venture in high-end inhalation formulations will achieve steady and long-term success, delivering excellent returns to investors and creating substantial economic and social value for society.
Dr. Duan Xufang, Executive Director of Qianhai Fund of Funds, stated, “We highly value Dr. Chen Yongqi’s extensive experience in the field of inhalation formulations. The team he has assembled at Resproly is a rare top-tier team in China’s dry powder inhalation formulation sector. Since its establishment, Resproly has achieved rapid growth, with continuous improvements in its technology platform, R&D pipeline, and corporate governance structure, demonstrating the team’s strong execution capabilities and vitality. Qianhai Fund of Funds is pleased to participate in this round of financing alongside numerous professional healthcare investment institutions and will continue to provide support for the company’s future development.”
Dr. Cheng Hao, Investment Partner in Biopharmaceuticals at Fuhui Venture Capital, pointed out that inhalation formulations are becoming a R&D hotspot in the biopharmaceutical sector both domestically and internationally. In particular, the powder inhalation formulation technology, in which Dr. Chen Yongqi has specialized, is unleashing significant market potential. We are pleased to see that Resproly, as a domestic biopharmaceutical company, has rarely mastered the core technologies for inhalation drug delivery—a capability held by only a few multinational pharmaceutical giants—and has built a robust R&D pipeline covering multiple blockbuster drugs from the top 100 global pharmaceutical rankings, each with sales in the billions of dollars. Within just a few years, Resproly has developed the capacity to conduct synchronous R&D with multinational corporations in the field of novel biological antibody inhalation delivery. We look forward to partnering with Resproly to jointly explore the broad market prospects for inhalation formulations.
In recent years, as relevant technology platforms have matured, high-end inhalation formulations have become a focal point for strategic investment by biopharmaceutical companies and investment institutions. Inhalation formulations are a drug dosage form in which the active pharmaceutical ingredient is dissolved or dispersed in a suitable medium and delivered directly to the lungs via specialized administration devices in the form of vapor or aerosol, thereby exerting local or systemic therapeutic effects. This approach can rapidly and directly enhance drug efficacy, reduce the required dosage, and minimize adverse reactions, making it the preferred treatment for respiratory diseases such as bronchial asthma and chronic obstructive pulmonary disease (COPD).
Data shows that in recent years, the market for inhaled medications at terminals including urban and rural public hospitals, community health centers, and township health centers in China has expanded year by year, with an annual growth rate remaining in double digits. The market size first surpassed the RMB 20 billion mark in 2018, reached RMB 23.68 billion in 2019, representing a year-on-year increase of 10.51%. It is projected that by 2023, the market size of inhaled preparations at the terminal of domestic public medical institutions will reach RMB 34.67 billion.
Based on device classification, inhaled formulations can be categorized into dry powder inhalers (DPIs), metered-dose inhalers (MDIs), and nebulized solutions (NEBs). Among these, dry powder inhaled formulations have risen rapidly due to their superior therapeutic efficacy for respiratory diseases. From the product portfolios of originator pharmaceutical companies, it is evident that with the accelerated approval of combination products, the number of dry powder inhalers marketed in China has increased significantly. Currently, the top two combination products by market size in China, Symbicort and Seretide, are both dry powder inhalers.
However, the formulation of dry powder inhalers (DPIs) presents significant manufacturing challenges. During the preparation process, micronized solid drug substances, either alone or blended with suitable carriers, are filled into capsules, blisters, or multi-dose reservoirs. These formulations are designed to be aerosolized by specialized DPI devices and inhaled by patients directly into the lungs. Determining the appropriate carrier type and optimizing the details of the inhalation device impose exceptionally high demands on formulation teams. It is understood that Dr. Chen Yongqi has participated in the development of most global blockbuster inhaled pharmaceutical products, possessing extensive R&D and industrial experience in inhaled drug delivery. Upon returning to China to establish his own venture, Dr. Chen dedicated himself to the R&D and production of inhaled aerosols and dry powder inhalers for respiratory diseases. By leveraging a dry powder inhalation formulation platform, he has built a dual-engine R&D model for Resproly, combining “high-end generics” with “innovative drugs,” thereby accelerating the development and research of inhaled formulations in China.
Qianhai Fund of Funds is a large-scale commercial fund of funds established in alignment with the spirit of “supporting the establishment of Qianhai equity investment funds of funds” as outlined in the State Council’s Reply on Policies Supporting the Development and Opening-up of the Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, and in response to the broader trend of an impending boom in China’s equity investment fund-of-funds industry. Qianhai Fund of Funds brings together influential limited partners (LPs) with substantial strength and interactive resources, primarily including government entities, insurance and financial institutions, well-known enterprises, and listed companies. It also assembles one of the most proficient fund-of-funds management teams in China, characterized by its deep understanding of private equity investment, extensive experience, broad resource networks, and superior management and service capabilities. The managing partners of the management company hail from top-tier investment institutions, with an average of over 20 years of investment management experience, overseeing assets under management exceeding RMB 100 billion, and delivering investment performance that ranks among the best in the industry.
Fuhui Venture Capital is a VC investment firm specializing in the commercialization of scientific and technological achievements and early-stage investments in technology enterprises. It excels in investing in sectors such as healthcare and advanced manufacturing, with a management team possessing extensive experience in real economy industries and equity investment. Its healthcare portfolio includes numerous high-quality companies such as New Horizon Health (06606.HK), Airdoc Technology (02251.HK), Weizhen Biotechnology [Medical Devices], Jinbaihui Biotechnology [Medical Devices], Kaisikaidi [New Drug R&D], Zhiben Pharmaceutical [New Drug R&D], Niulan Biotechnology [Exosomes], Huazi Biotechnology [Long-acting Proteins], Baiji Hongye [New Drug R&D], Youli Pharmaceutical [New Drug R&D], Luoqi Biotechnology [Nanobodies], Lingkang Times [Pharmaceutical CDMO], Ruishun Biotechnology [Cell Therapy], and Xinling Pharmaceutical [Transdermal Formulations].