Arthur Group Secures Hundreds of Millions RMB in Series A Funding to Advance High-End Drug Formulation Development and Continuous Manufacturing

In April 2022, Zhejiang Arthur Pharmaceutical (Arthur Group) announced the completion of its Series A financing round, raising hundreds of millions of RMB. The round was led by ADDOR Capital, with follow-on investments from private equity firms including Changxing Financial Holdings, Jiaxing Science and Technology City Fund, Hangzhou Ruiying Assets, and Huzhou Xincheng. The proceeds will be used to construct injection production lines at Arthur Pharmaceutical that comply with Chinese, U.S., and EU standards, and to build a product pipeline centered on upstream and downstream product lines for high-end formulations. Meanwhile, Arthur Pharmaceutical is committed to advancing the FDA submission for the first domestic drug product manufactured using continuous manufacturing processes. Kaicheng Capital and BFC GROUP served as financial advisors for this financing round.

Arthur Pharma was established in March 2020 as one of the first batch of “multi-billion-yuan” projects introduced in Nanhu District. Within less than two years since its inception, the company has experienced rapid growth, currently operating two R&D centers each exceeding 2,000 square meters, establishing four active pharmaceutical ingredient (API) production lines, assembling an R&D team of over 100 professionals, and developing dozens of product pipelines focused on high-end drugs. While strengthening its R&D and manufacturing capabilities, Arthur Pharma has also gained favor from several large domestic pharmaceutical companies. Through long-term, in-depth strategic partnerships with these collaborators, the company has already generated over RMB 100 million in early-stage R&D revenue, and future collaborative product sales are expected to bring additional income to Arthur Pharma.

Dr. Liu Hongbin, Founder and CEO of the Company, has held senior management positions at several renowned enterprises, including McKinsey & Company in the United States, Novartis Pharmaceuticals in Switzerland, and Pfizer Inc. in the United States. He possesses extensive international experience in the research, development, and manufacturing of high-end pharmaceutical formulations. Commenting on the successful completion of this Series A financing round, Dr. Liu stated: “First and foremost, I extend my heartfelt gratitude to the investors in this round for their support and trust in Arthur Pharma and myself. Such confidence is particularly invaluable amid the current downturn in the pharmaceutical investment landscape. Arthur Pharma will leverage this financing to further optimize its R&D pipeline, establish an injectable production line compliant with FDA standards, and advance its global layout for continuous formulation manufacturing. We will continue to uphold our founding philosophy and original aspiration—‘to carry forward the lost teachings of past sages and to secure peace and well-being for all generations’—so as to benefit more patients and ensure that the general public has access to high-quality medicines that are cost-effective, safe, and reliable.”

Dr. Meng Xiaoying, Investment Director of the Healthcare Division at ADDOR, the lead investor in this round, stated: “Arthur Pharma is committed to deploying high-end active pharmaceutical ingredients (APIs) and formulations, further strengthening its competitive moat through disruptive continuous manufacturing processes for drug products. It is a pharmaceutical company that combines stability with innovation. Arthur Pharma’s accumulation of upstream and downstream pipelines for high-end drug products, along with its innovative understanding of pharmaceutical manufacturing processes, is impressive. This aligns precisely with ADDOR’s philosophy of deep layout across the pharmaceutical industry chain. We look forward to Arthur Pharma’s rapid development in the future and will support the company in further deepening its advantages in niche sectors.”

Shen Feiying, Partner at Hangzhou Ruiying Asset Management, stated: “We are honored to partner with Arthur Pharma. Dr. Liu brings extensive experience in drug development and corporate management, having rapidly built a team of over 100 employees and established R&D and industrialization bases within a short period, demonstrating exceptional operational efficiency and managerial capability. Furthermore, Dr. Liu possesses unique insights into the industry and is actively advancing continuous manufacturing processes. We are confident that Arthur Pharma will become a leading international enterprise in advanced drug formulations, and we look forward to the early market launch of its products to benefit patients.”

ADDOR was established through a mixed-ownership reform within the Jiangsu High-Tech Investment Group, a well-established and renowned venture capital firm. It ranks among the industry leaders in terms of industry research capabilities, assets under management, and investment specialization, making it one of the most influential venture capital institutions in China. As of January 2022, ADDOR’s management team had overseen a cumulative capital base of RMB 121.8 billion, invested in and supported 1,135 startups, and facilitated the listing of 221 portfolio companies on domestic and international capital markets.

Hangzhou Ruiying Asset Management Co., Ltd. was established in 2017 and is a professional private equity investment management firm. The company primarily focuses on early-to-mid-stage strategic investments in two key sectors: healthcare and the big health industry, and high-end intelligent manufacturing. By collaborating with major research and development institutions and capital partners, it facilitates strategic incubation and the integration of strategic resources. The company adheres to the philosophy of “identifying project value through market analysis and scientific research, enhancing capital liquidity to create value, and ultimately driving value appreciation through operational and managerial excellence.” Its assets under management amount to several billion RMB. Representative portfolio companies include Adipogen, Newrate, Kayou Diagnostics, Maibang Biotechnology, Hepu Pharmaceutical, Suxin Medical, Jiudao Technology, and Gehuda, among other high-quality, high-growth enterprises.

WinX Capital is a leading investment bank in China’s healthcare and wellness sector. Five members of its founding team hold Ph.D. degrees in Global Finance from the PBC School of Finance at Tsinghua University, while its frontline professionals boast an average of over 10 years of experience in management, investment, and M&A, with cumulative transaction values exceeding RMB 30 billion. Headquartered in Beijing and Shanghai, WinX Capital maintains coverage of more than 3,000 active institutional investors and industrial conglomerates. In 2020 and 2021, it was consecutively ranked among the “Top 5 Most Promising Emerging Investment Banks in China” by 36Kr (WISE 2020/2021), listed as one of the “Top 4 Most Active Financial Advisors in Healthcare” by First New Voice in 2021, and recognized as one of the “Top 4 Best Financial Advisory Firms in Healthcare” in 2020 and “Top 2 Best Financial Advisory Firms in Healthcare” in 2021 by Qiming Technology & New Voice Innovation Services.

BFC GROUP is a boutique investment bank focused on the healthcare sector, headquartered in Shanghai, with operations spanning China, the United States, Europe, and major Asia-Pacific countries. The company is comprised of a team with professional pharmaceutical backgrounds and extensive industry experience, covering domestic and cross-border financing, mergers and acquisitions, and technology licensing transactions. Since its establishment over a decade ago, it has completed more than 100 projects, with a total transaction value exceeding USD 5 billion.