Guanhuai Medical, a Leading Membrane Science Platform in China, Secures Hundreds of Millions of RMB in Series B Financing Led by Boyuan Capital and Sherpa Healthcare Partners

VCBeat has learned that Jiangsu Guanhuai Medical, a leading domestic platform enterprise in membrane science for the pharmaceutical sector, has announced the completion of its Series B financing round amounting to hundreds of millions of yuan. The round was co-led by Boyuan Capital and Sherpa Partners, with participation from Stone Capital and the Wuzhong Biopharmaceutical Industry Fund. Bairong Capital served as the exclusive financial advisor for this financing round.This round of financing will be used to support Care Medical’s continued R&D investment in the membrane science platform, expand production capacity for its assembly lines of membranes and filter columns for biopharmaceutical applications, and promote related products. Previously, the company secured Series A financing led by Sunshine Ronghui Capital.

Care Medical is located in the Wuzhong Comprehensive Bonded Zone of Suzhou, dedicated to improvingA Platform Enterprise for China’s Membrane Science Innovation Capabilities and Manufacturing Standards. Currently, the company's main products areHigh-end membrane materials and components, including nanofiltration, ultrafiltration, microfiltration, and reverse osmosis, primarily applied in biopharmaceutical-related fields such as vaccines, cell therapy, antibody drugs, and gene therapy, as well as in the field of blood purification. The company possesses full industry chain capabilities spanning raw material formulation, manufacturing and assembly of membrane production lines, membrane production, assembly of finished filter cartridges, and sales, establishing itself as a leading enterprise in membrane science platforms within China's pharmaceutical sector.

Guanhuai Medical Successfully Breaks the Technological Monopoly of Hollow Fiber Membranes in Biopharmaceuticals Held by Developed Countries. In the field of biopharmaceuticals,Tangential flow filters are critical process technology products used in perfusion cell culture, concentration, and viral filtration.Currently, the domestic market is entirely monopolized by foreign companies such as Repligen, Sartorius, Cytiva, Merck Millipore, and Asahi Kasei. Their products are expensive, have long lead times, and are subject to stringent export control reviews by the commerce departments of countries in Europe, the United States, and Japan, which has become a significant constraint on the rapid development of China’s biopharmaceutical industry.

Since its inception, Guanhuai Medical has invested substantial human and material resources to successfully develop hollow fiber membrane filter cartridges specifically designed for biopharmaceutical applications, including vaccines and cell therapies.It has become the only enterprise in China capable of mass-producing hollow fiber membrane tangential flow filters within the current biopharmaceutical sector, and has commenced external sales. Its capabilities include modification of membrane raw materials, independently developed production process formulations, a hollow fiber membrane manufacturing line with full independent intellectual property rights, establishment of scientific membrane fabrication methodologies, and an assembled production line for finished products.Built a solid competitive moat for Guanhuai Medical.

Recently, Guanhuai Medical’s tangential flow filters have passed biocompatibility safety testing certification, gained validation and acclaim from numerous renowned biopharmaceutical clients in relevant fields, and received and fulfilled multiple batches of commercial orders.Extensive validation data demonstrate that Care Medical’s TFFNOVA tangential flow filtration product achieves performance equivalent to imported products in practical applications, featuring lower shear stress and transmembrane pressure (TMP) during the CAR-T manufacturing process,Maintained the viability (>90%) and biological function of CAR-T cells, enabling the cell concentration to easily reach 60–100 times that of the bulk drug substance., with a high recovery rate of over 90%. At the 2021 Nanjing Biological Products Annual Conference, Care Medical's tangential flow filters garnered significant attention from numerous biopharmaceutical manufacturers upon their debut.

Meanwhile, Guanhuai Medical has independently developed its own flat-sheet membrane production line and flat-sheet membrane module assembly line.Preliminary automated production of flat-sheet membranes and membrane cassettes has been achieved, with plans to officially launch flat-sheet membrane cassette products within the year., achieving the commercialization of flat-sheet membrane cassettes with independent intellectual property rights. At that time, Guanhuai Medical leveragedCommercial Implementation of the Dual-Drive Strategy for Hollow Fiber Membranes and Flat-Sheet Membranes, which will thoroughly resolve the bottleneck issue faced by domestic biopharmaceutical companies in filtration processes during production. With the rapid development and maturation of China’s biopharmaceutical industry, the market size for upstream filtration in biopharmaceuticals will continue to expand. Upholding an unwavering spirit of craftsmanship, Guanhuai Medical will support the robust growth of China’s biopharmaceutical industry with its high-quality products.

China is a major country with significant demand for end-stage renal disease (ESRD) treatment. According to the Chinese National Renal Data System (CNRDS),As of 2020, approximately 700,000 patients in China were undergoing hemodialysis treatment, with an estimated consumption of over 100 million dialyzers and a market size of approximately RMB 6–7 billion.Currently, more than half of the dialyzer market in China is dominated by international manufacturers such as Fresenius, Nipro, and Bain. The potential for domestic substitution in China's dialyzer market is substantial.

Leveraging its independently developed 1,536-spinneret hollow fiber membrane spinning production line, the founding team of Guanhuai Medical is capable of manufacturing hollow fiber membranes for blood purification. This system surpasses imported German counterparts in spinning speed, production quality, and cost control, thereby establishing an insurmountable competitive barrier in the field of blood purification.。

Following the outbreak of the COVID-19 pandemic, a shortage of Extracorporeal Membrane Oxygenation (ECMO) systems, also known as "artificial lungs," became evident both domestically and internationally. As the ultimate life-sustaining intervention for critically ill patients, ECMO remains without any mature domestic commercial offerings in China, leaving the market monopolized by foreign companies. The hollow-fiber membrane oxygenator represents the most valuable and technically challenging component of ECMO systems, with its polymethylpentene (PMP) membranes supplied globally exclusively by 3M Membrana. Currently,Guanhuai Medical has partnered with China’s leading medical device manufacturers for joint R&D, aiming to break the foreign monopoly and resolve the “chokehold” issue in ECMO technology.

The high-end membrane materials that Guanhuai Medical focuses on are among the key products emphasized in recent documents issued by multiple national ministries and commissions for the development of biopharmaceuticals.In November 2021, the National Development and Reform Commission (NDRC) and the Ministry of Industry and Information Technology (MIIT) jointly issued the “Notice on Implementing the Plan to Promote High-Quality Development of the Active Pharmaceutical Ingredient (API) Industry” and its annex, “Major Projects for the High-Quality Development of APIs,” which clearly identified one of the key tasks as “...targeting frontier technological fields in active pharmaceutical ingredient (API) manufacturing...developing high-end membrane materials and modules such as nanofiltration, ultrafiltration, microfiltration, and reverse osmosis...”

Recently,Guanhuai Medical, a leading enterprise in the high-end film industry, partners with PetroChina, Zhejiang University, and Sichuan Universityalongside top-tier universities and renowned enterprises, were included in the Ministry of Science and Technology’s 14th Five-Year PlanThe Key R&D Program Project Team on “High-End Functional and Smart Materials” undertook the industrialization demonstration and application of 4-methyl-1-pentene monomers and their hollow fiber membrane materials for “artificial lungs” (ECMO membranes), as well as the industrialization demonstration and application of polyethersulfone materials for blood purification.Two sub-projects are under development, forging ahead to thoroughly resolve the nation’s “chokehold” challenges in this field.

Regarding the success of this financing round, Li Xiaofeng, Chairman of Guanhuai Medical, statedGuanhuai Medical is dedicated to the research, development, and innovation of membrane science in China’s healthcare sector, striving to break through technological blockades imposed by developed nations. We are committed to ensuring that Chinese enterprises in the fields of biopharmaceuticals and blood purification are no longer constrained by overseas companies. We extend our gratitude to Boyuan Capital, Sherpa Capital, Stone Capital, and Wuzhong Biopharmaceutical Industry Fund for their recognition, and we specially thank our existing shareholder, Sunshine Ronghui Capital, for its steadfast support along the way. Guided by our mission of “Caring for Life, Focusing on Innovation,” we will make unremitting efforts to contribute to the robust development of China’s healthcare industry.

Li Han, Vice President of Investment at Boyuan Capital, statedFiltration is one of the core steps in biopharmaceutical production, and various types of filters are widely recognized in the industry as high-barrier, bottleneck products. Leveraging years of technical expertise, Guanhuai Medical has mastered underlying technologies ranging from upstream raw materials and membrane production lines to filter membrane manufacturing processes, thereby developing a comprehensive portfolio of biopharmaceutical filtration products. We believe that under the leadership of its core team, Guanhuai Medical will continue to provide customers with high-quality and reliable biopharmaceutical filtration and hemodialysis consumables, helping them break through foreign monopolies, enhance autonomous and controllable production capabilities, and advance from domestic substitution to global expansion of Chinese-made products.

Xiaerba Investment Management Partner Xing Cheng statedIn recent years, Sherpa Capital has comprehensively invested in innovative R&D enterprises focused on biomacromolecules, cell and gene therapies, gaining deep insights into the challenges faced by upstream pharmaceutical R&D and manufacturing sectors, such as single-source suppliers, long lead times, and unstable supply chains. Therefore, we have been actively identifying companies in these fields that possess core technological R&D capabilities and the ability to achieve large-scale industrial implementation. Guanhuai Medical’s microfiltration and ultrafiltration membrane products have already completed commercial validation in the fields of biopharmaceuticals and blood purification, focusing on resolving the “bottleneck” issues in the separation and purification processes for Chinese biopharmaceutical companies. We believe that under the leadership of its two founders, Guanhuai Medical will continue to achieve technological breakthroughs, leading the development of China’s biopharmaceutical membrane technology platform, and providing robust technical support and assurance for downstream industries such as biopharmaceuticals and hemodialysis.

Huang Yiling, Managing Director of CDH Investments, statedAutonomy and controllability in the core segments of the pharmaceutical industry are of significant importance, and related product and technological innovations are key areas of focus for Jishi Capital. The Care Medical team possesses deep industrial expertise and has established formidable competitive barriers in spinning production equipment and manufacturing processes. Care Medical holds a first-mover advantage in biopharmaceutical filtration processes. Under the leadership of its two founders, the company is expected to develop more products and solutions, making outstanding contributions to the development of China’s biopharmaceutical industry.

Tong Tong, Chairman of the Wuzhong Biopharmaceutical Industry Fund, statedGuanhuai Medical has established deep roots in Wuzhong District and is a key innovative enterprise supported by the district. Leveraging its robust R&D capabilities, specialized team, and profound technological expertise, Guanhuai Medical has grown into a leading domestic player in the fields of biopharmaceuticals and dialysis consumables. Through exchanges with companies in cell therapy, gene therapy, vaccine preparation, and other areas invested in by the Wuzhong Biopharmaceutical Industry Fund, we are acutely aware of the urgent need within China’s CGT industry to address the supply of critical upstream consumables. We believe that under the leadership of its founders and in collaboration with numerous top-tier institutions, Guanhuai Medical will continue to achieve technological breakthroughs, further expand its market presence, and empower the rapid development of China’s biopharmaceutical industry.

BioTrack Capital, founded in 2017, is a specialized investment firm dedicated to investing in and incubating outstanding healthcare startups in the Chinese market. We are not just investors; we are long-term partners to entrepreneurs. We provide sustained support to the most distinguished healthcare founders, cultivating the next generation of leading enterprises in China’s healthcare industry.

Sherpa Capital was founded in 2018. Its founders previously worked together at a leading Chinese venture capital firm, where they established and led the healthcare investment team in 2011, overseeing healthcare investments and managing healthcare funds. United in purpose and collaborative in spirit, the Sherpa Capital team has weathered challenges and pressed forward with determination, emerging as an influential venture capital institution in China’s healthcare sector. The firm has invested in numerous industry leaders across key sectors, including life sciences, pharmaceuticals, medical devices and diagnostics, and healthcare services. Honing its expertise over a decade—from 2011 to 2021—the team navigated four fund vintages and evaluated more than 120 healthcare projects, forging successful partnerships with many outstanding entrepreneurs and growing alongside them.

Cornerstone Capital is an alternative asset management firm with a profound heritage and over 20 years of investment management experience. As one of China’s earliest venture capital institutions, it manages a diverse range of asset classes, including angel investing, venture capital (VC), private equity (PE), mergers and acquisitions (M&A), private investments in public equity (PIPE), and secondary private securities. By the end of 2020, its assets under management exceeded RMB 55 billion. Cornerstone Capital has long been committed to equity investments in growth-stage enterprises within China, focusing on industries characterized by steady growth, such as technology, healthcare, and consumer services. Over the years, it has nurtured and cultivated a cohort of industry leaders and dominant players in various niche sectors.

Wuzhong Biopharmaceutical Industry Fund is a specialized state-owned investment platform under Wuzhong Biopharmaceutical Industrial Park (LifeBay), with a total fund size of RMB 5 billion and an initial closing of RMB 1 billion. Leveraging the existing biopharmaceutical industrial foundation in Suzhou and Wuzhong, and integrating premium industry resources, the fund adheres to the philosophy of supporting biopharmaceuticals as Suzhou’s “No. 1 Industry.” Since its establishment, it has achieved extensive investments in fields such as tumor genetic testing, innovative drugs, high-end generic drugs, and AI-driven pharmaceuticals, committed to helping build a domestically leading biopharmaceutical industrial park and industry fund.

Bairong Capital is a research-driven financial advisory firm focused on the healthcare sector. It aims to help healthcare companies achieve rapid growth through extensive transaction experience and provide investment institutions with insights into valuable investment opportunities through rigorous, in-depth research. Bairong Capital’s areas of focus span multiple healthcare sub-sectors, including healthcare services, medical devices and consumables, IVD and precision medicine, biopharmaceuticals, and healthcare informatics. The core team at Bairong Capital comprises professionals from top-tier consulting firms, leading investment banks, and major accounting firms.