Innovative Transdermal Drug Delivery Platform Xinling Pharma Secures Nearly RMB 100 Million in Pre-A Funding Led by Fuhui Ventures and Zhongke Chuangyao

VCBeat (WeChat ID: vcbeat) has learned that Xinling Pharmaceutical Technology (Shenzhen) Co., Ltd. (hereinafter referred to as “Xinling Pharmaceutical”) recently announced the completion of its Pre-A financing round, raising nearly RMB 100 million. The round was led by Fuho Capital, with follow-on investment from Zhongke Chuangyao Venture Capital. Qiantuhui Pharma served as the financial advisor for this financing round. The proceeds will be primarily used to strengthen product research and development, enrich the product pipeline, and expand the professional team, thereby further consolidating Xinling Pharmaceutical’s leading advantage in core transdermal formulation technologies.

Dr. Tang Jiansheng, Founder of NewLead Medicine, stated: “We extend our sincere gratitude to the Qiantuhui team for their diligent efforts during this financing round. Working in close collaboration with our company’s team, Qiantuhui helped us efficiently complete the fundraising process, thereby supporting NewLead Medicine’s accelerated future growth. We wish Qiantuhui continued success in serving more outstanding Chinese biopharmaceutical enterprises in 2022.”

Xinling Pharmaceutical was co-founded in 2019 by Dr. Tang Jiansheng, an internationally renowned formulation expert, and Dr. Liao Shiping, a quality research specialist. Dr. Tang, one of the most influential scientists in transdermal drug delivery systems globally, has developed and launched 14 transdermal patches (with several others pending FDA approval). He is a recipient of the U.S. National Inventors Award and the Distinguished Achievement Award from the Iowa State University Alumni Association. Dr. Tang previously served as Senior Principal Scientist at Mylan, a leading company in transdermal drug delivery technologies; as Director of Transdermal Formulation R&D at Teva, a Fortune 500 company specializing in 505(b)(2) products and generics; and as Head of Global R&D at Aveva, a world-leading transdermal patch company. The founding members of Xinling Pharmaceutical possess over 20 years of R&D and management experience in the transdermal drug delivery industry. Its technical and management teams have established mature transdermal drug delivery technology platforms and have successfully achieved industrialization of multiple transdermal formulations both domestically and internationally. The company is committed to becoming a world-leading innovative platform enterprise integrating R&D, manufacturing, and sales of transdermal drug delivery systems.

Transdermal drug delivery refers to the absorption of drugs through the skin into the systemic circulation, achieving effective plasma concentrations for the treatment or prevention of clinically approved indications. Compared with oral and injectable administration, transdermal drug delivery offers the following advantages:

1) Avoid the first-pass effect;

2) Reduce many types of side effects, such as gastrointestinal reactions;

3) The dosage remains stable, with a duration of up to 7 days;

4) For special populations such as children, the elderly, and pregnant women, convenient drug administration methods can enhance patient compliance.

The international market for transdermal drug delivery is substantial, while the domestic market in China is just emerging. According to projections by an Irish market research firm, the global transdermal drug delivery market is expected to reach USD 7.358 billion (approximately RMB 49.5 billion) by the end of 2024. Currently, hundreds of transdermal patch products are available on the global market, with 45 transdermal drug delivery systems approved. Major players in the global transdermal drug delivery system industry include Teva, Novartis, Johnson & Johnson, Mylan Pharmaceuticals, Hisamitsu Pharmaceutical, and AVEVA, among others. The Chinese transdermal drug delivery market is valued at nearly RMB 10 billion; however, it remains dominated by traditional plasters, cataplasm patches, and gel patches, which primarily employ local administration technologies and focus on pain management and orthopedics. As centralized volume-based procurement continues to advance and the challenges of new drug development intensify, transdermal patch formulations for systemic delivery in the treatment of various diseases will become a key area of innovation for pharmaceutical companies in both product development and sales.

Dr. Tang Jiansheng, CEO of NewLead Pharma“Better meeting clinical needs is the mission of pharmaceutical companies. Xinling Pharma insists on taking clinical needs as the starting point and regards this as the gold standard for developing innovative products. Transdermal formulations feature low investment, low risk, and short development cycles, and their future commercial value is in no way inferior to that of many highly competitive sectors. The company will use the funds raised in this financing round to continuously advance the R&D, clinical trials, NMPA and FDA registrations, and commercialization of multiple transdermal formulation products, laying a solid foundation for its future development.”

Zeng Jun, Founding Partner of Fuho Capital“He stated: ‘Innovative formulations, particularly transdermal patches, represent a rapidly growing market in China. Coupled with the overarching trend of domestic substitution, we are firmly optimistic about the industry’s future prospects. Dr. Tang Jiansheng, the company’s founder, possesses extensive experience in the field of transdermal patches, having led and completed the research and development of multiple original transdermal patch products. After establishing Xinling Medicine as an independent venture, he assembled a top-tier team specializing in transdermal patches in China. Xinling Medicine boasts unique proprietary technologies, as well as comprehensive capabilities in product R&D, manufacturing, and regulatory approval. In particular, the management team demonstrates strong execution capabilities and a global perspective. We believe that, with the advancement of the company’s product pipeline and a mature commercialization strategy, Xinling Medicine will emerge as a leading enterprise in China’s transdermal formulation sector.’”

Fu Junrong, Partner at Fuho CapitalIt stated: “Against the backdrop of high investment and high risk in innovative drug R&D, developing and filing novel formulations—particularly transdermal patches—via the 505(b)(2) pathway represents a promising direction. In recent years, the number of drugs approved by the FDA through the 505(b)(2) pathway has surpassed those approved via 505(b)(1). Chinese domestic enterprises testing the U.S. innovative drug market through the 505(b)(2) pathway have now entered a harvest period. Currently, China’s pharmaceutical industrial policy environment encourages the development of improved new drugs, promoting both improvement and innovation to meet clinical needs. The 505(b)(2) pathway is a unique U.S. new drug application route that has become one of the development strategies for many pharmaceutical companies, often metaphorically described as ‘a climbing journey standing on the shoulders of giants.’”’Xinling Pharma possesses unique transdermal formulation technology, with a product pipeline targeting large-market segments. The company’s R&D and regulatory approval progress are at the forefront in China. In particular, its management team demonstrates strong R&D capabilities and a global perspective. We believe that as Xinling advances its product development and implements a mature commercialization strategy, it will emerge as a leader in the field of innovative drug formulations. We look forward to establishing a long-term partnership with Dr. Tang, not only to facilitate the company’s investment and financing activities but also to explore business development (BD) opportunities for product license-in and license-out collaborations.

Fuho Capital is a venture capital 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 both real 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], Casecade [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 Medicine [New Drug R&D], Luoqi Biotechnology [Nanobodies], Lingkang Era [Pharmaceutical CDMO], Ruishun Biotechnology [Cell Therapy], and Xinling Pharmaceutical [Transdermal Formulations].

Qiantuhui is a comprehensive service platform for the promotion, matchmaking, and transaction of equity, technology, and services supply and demand in the global pharmaceutical and healthcare industry. Focusing on the pharmaceutical and healthcare sector, the platform is dedicated to providing high-quality resource integration services. Leveraging channels such as the internet, mobile internet, high-level summits, targeted salons, WeChat official accounts, and publication media, the platform offers clients cooperation opportunities across nearly 50 categories, including corporate equity, new drug/generic drug technologies, international technologies, and pharmaceutical clinical/sales services. This fosters mutual exchange and win-win collaboration within the global pharmaceutical and healthcare industry. The platform currently serves over 500 VIP clients, more than 600 promotional clients, and over 8,000 member clients. It has successfully facilitated 68 matchmaking conferences and assisted clients in completing over 70 financing and M&A transactions, with a cumulative transaction value exceeding RMB 20 billion. Furthermore, the platform has established long-term partnerships with international partners such as TPP, MSQ, Cenponts, Beyond Lab, Z Investment, and Zeith, while aggregating over 1,000 domestic pharmaceutical and healthcare investment institutions to provide premium services for Chinese pharmaceutical enterprises implementing overseas M&A strategies.

With over a decade of deep engagement in the pharmaceutical industry and extensive industry resources, Qiantuhui is committed to serving as the premier bridge between innovative biopharmaceutical enterprises and investors, deeply empowering corporate growth. To better facilitate the accelerated development of China’s innovative biopharmaceutical companies, Qiantuhui established a specialized financial advisory (FA) platform for the pharmaceutical and healthcare industries in March 2021. This platform provides dedicated services across multiple segments, including innovative large-molecule and small-molecule drugs, gene and cell therapies, CXO services, improved novel drug technology platforms, IVD diagnostics, innovative medical devices, digital health, medical services, and License-in/out projects.