YuXi Pharma Secures Tens of Millions in Pre-A Funding to Accelerate Development of Innovative Dermatology Therapeutics

On January 24, 2022, Nanjing Yuxi Pharmaceutical Technology Co., Ltd. (hereinafter referred to as “Yuxi Pharma”) announced that it had recently completed a pre-Series A financing round amounting to tens of millions of RMB.This round of financing was led by Bencao Capital, with participation from Jiuyou Capital, Changfazhan, Aibo Qingshi, and Mingfeng Capital. Existing shareholders Yingdi Capital and Tibet Gaoge continued to increase their stakes.. The proceeds from this financing round will be primarily allocated to clinical trials of products, pipeline development, the construction of innovative technology platforms, and team expansion.

Yuxi Pharma is an R&D-driven company specializing in the development of improved new drugs in the dermatology field, committed to addressing unmet needs across all segments of the skin health industry chain. The company has built its product pipeline around its proprietary “Innovative Long-Acting Transdermal Technology Platform.” Currently, multiple drug candidates are under development, with the lead candidate, IDT-001, scheduled to initiate clinical trials this year.

Healthcare and consumer goods are two global mega-sectors, each with a market size exceeding one trillion US dollars. Skin health, as the overlapping domain of these two sectors, has long been a focal point for global research and development. Data show that the global market for dermatological pharmaceuticals was valued at approximately USD 50 billion in 2018 and is projected to reach USD 92.4 billion by 2028. China has a large population affected by skin diseases; however, over the past decade, very few new dermatological drugs have been launched domestically. Clinical practice still relies heavily on legacy products approved two or three decades ago, such as miconazole nitrate cream (Daktarin) for antifungal treatment, mupirocin ointment (Bactroban) for antibacterial therapy, and mometasone furoate cream (Elocon), a corticosteroid. Furthermore, domestically marketed products exhibit considerable uniformity in dosage forms, predominantly consisting of topical ointments and creams. There is an urgent clinical need for innovative therapeutic products.

Currently, there are two major challenges in the global development of topical formulations: first, enhancing the transdermal delivery efficiency of topical drugs; and second, improving patient compliance with topical formulations. Yuxi Pharmaceutical’s “Innovative Long-Acting Transdermal Technology Platform” is a formulation platform characterized by strong transdermal performance and sustained long-acting drug release. Drugs developed based on this platform can increase the transdermal permeability of poorly soluble drugs by orders of magnitude when applied to the lesion site, maintain prolonged drug release, and thereby enhance therapeutic efficacy. Meanwhile, the base material of this technology platform itself promotes wound healing, prevents infection at the lesion site, and offers transparency and aesthetic appeal, significantly improving patient compliance.

Hu Tao, Founder of Yuxi Pharmaceuticalstated, “We are deeply honored to have secured support from multiple specialized biomedical investment institutions. The successful completion of this financing round provides a strong foundation for accelerating our R&D pipeline and enhancing our technology platform. Over the next two to three years, we anticipate that a series of product candidates will enter various clinical stages. We look forward to working with both existing and new investors to jointly build an internationally competitive innovative drug pipeline, thereby benefiting more patients.”

Lead Investor of This RoundGeng Xiangnan, Investment Director at Bencao Capitalstated: “We are highly optimistic about leveraging innovative pharmaceutical technologies to enhance drug efficacy. Yuxi is a rare domestic innovator in topical dermatological medications, driving formulation innovation through its proprietary technology platform. The team boasts impressive business development capabilities and execution strength, combining outstanding innovation with commercialization prowess. Bencao and its partners will also explore deeper synergistic collaborations with the company to support its rapid and efficient growth.”

Investors in This RoundSun Yi, Managing Partner at Jiuyou Capital“Jiuyou Capital is honored to participate in this round of investment in Yuxi Pharmaceuticals. Innovative drugs and cutting-edge technology platforms in dermatology have always been our key investment focus. The domestic dermatology market has seen no launch of innovative products for a considerable period. Yuxi Pharmaceuticals’ strong breakthrough has injected vitality into innovation in the field of dermatology. The company’s multiple platform technologies and excellent business development capabilities will continuously enrich the dermatology market with new products, bringing significant benefits to patients.”

Investors in This RoundWang Ying, General Manager of Chang Development CapitalIt stated: “Skin health possesses both medical and consumer attributes, featuring a large audience base and diverse sales channels and scenarios. There are still opportunities for new brands and products in China. Yuxi has established technological platforms such as long-acting transdermal delivery, which hold broad application prospects in the fields of dermatological pharmaceuticals and medical aesthetics.”

Investors in this round, lead angel investorWang Yiping, Partner at Yingdi Capitalstated: “We are honored to have participated in two rounds of investment in Yuxi Pharmaceutical. The dermatology product market boasts a capacity of hundreds of billions of yuan, with substantial unmet clinical needs and a scarcity of innovative products and companies. The company’s patented transdermal technology platform addresses the pain points of low transdermal efficiency and suboptimal efficacy associated with topical dermatological drugs and medical aesthetics active ingredients, thereby improving patient compliance.”