Tongyuan Kang Pharma Completes RMB 330 Million Series C Financing Led by Houji Capital, WinX Capital as Exclusive Financial Advisor

January 2022,Zhejiang TYK Medicines Co., Ltd. (hereinafter referred to as “TYK Medicines”), a leading enterprise in the research and development of novel oncology drugs with a foothold in China and a global footprint, announced the completion of its RMB 330 million Series C financing round. The round was led by Houji Capital, with participation from renowned institutions including Yangtze River Fund and Zhejiang United Investment Group/Zhejiang Silk Road Fund. WinX Capital served as the exclusive financial advisor for this financing round.

TYK Medicines, established in November 2017, has built a 30,000-square-meter new drug R&D center at the Changxing Life Science Park in Huzhou, Zhejiang. It subsequently established its corporate administrative headquarters, Clinical Medicine Department, and Business Development Department in Shanghai, and set up a small-molecule drug screening platform in Zhengzhou. New drug formulation manufacturing facilities are currently under construction in Changxing and the Songjiang District of Shanghai. TYK Medicines is one of the very few innovative biopharmaceutical high-tech companies in China with integrated capabilities in both drug R&D and production.

TYK medicines boasts a research and development and management team with an international perspective. The core senior executives have an average of over 20 years of work experience, including two national-level experts, two provincial-level experts, and more than ten overseas-returning experts and PhDs. After four years of vigorous development, the company’s workforce has grown to over 100 employees, featuring a premier team that covers the entire process from drug discovery, druggability evaluation, CMC, regulatory affairs, clinical development, business development, to operations.

The Company focuses on the development of best-in-class and first-in-class small-molecule anticancer drugs. Among these, TY9591 is poised to initiate Phase III clinical trials; TY302 is about to enter Phase II clinical trials; and TY-2136b received approval from the U.S. FDA for an Investigational New Drug (IND) application in November 2021, with an Orphan Drug Designation filed with the FDA in December 2021 to support accelerated clinical development and regulatory approval for market launch. In addition, the Company has a pipeline of novel small-molecule drugs targeting innovative mechanisms that are prepared for IND submissions in both China and the United States.

Dr. Wu Yusheng, Chairman of TYK MedicinesStatement: We extend our sincere gratitude to both new and existing shareholders for their recognition of the Company. Focused on the research and development of innovative small-molecule anti-tumor drugs, we have assembled a team of seasoned experts and overseas-returnee talents, established state-of-the-art drug R&D laboratories and formulation manufacturing facilities, and developed a competitive product pipeline. Our efforts have been recognized by numerous prestigious investment institutions. Moving forward, the Company will continue to enhance the efficiency of its product development and advancement, thereby rewarding the trust placed in us by investors and patients alike.

Lead Investor in This Round of FinancingHe Chao, Partner at Houji CapitalTYK medicines has conducted in-depth research and forward-looking exploration to address significant unmet clinical needs in lung cancer and breast cancer, particularly focusing on non-small cell lung cancer (NSCLC) and the use of medications for premenopausal Asian women with HR+/HER2- breast cancer. Leveraging its mature small-molecule development and druggability evaluation platform, the company is developing a series of inhibitors targeting various NSCLC targets, as well as a portfolio of CDK-targeting small-molecule drugs. Furthermore, TYK medicines possesses profound insights into the mechanisms of resistance mutations such as ROS1 G2032R, TRKA G595R, and ALK G1202R—mutations for which there are currently no effective therapies globally. The company has designed compound molecules specifically targeting these resistance mutations, demonstrating favorable safety and efficacy profiles in cell line, in vivo, and in vitro studies. The team’s seamless collaboration and high operational efficiency fully reflect the maturity of the company’s small-molecule R&D technology platform. We are highly optimistic about the company’s future development and are delighted to partner with such an outstanding organization. We look forward to TYK medicines delivering world-class innovative drugs in the fields of lung cancer, including globally prevalent unmet needs related to lung cancer resistance mutations, and cell cycle kinases such as CDKs. We believe the company’s future prospects are exceptionally promising.

Mr. Shen Li, Managing Director of Zhejiang United Investment GroupStatement: We are honored to participate in this round of financing for TYK medicines. Leveraging its mature innovative small-molecule drug development platform, the company has deeply cultivated the field of solid tumors with significant unmet clinical needs, such as lung cancer and breast cancer. In recent years, the company has achieved rapid growth with support from all sectors of society. TYK medicines boasts a rich and well-structured pipeline that balances clinical needs with drug developability, and its R&D progress has been smooth. Several flagship candidates, including TY-9591 and TY-302, are at various stages of clinical development. The company’s team possesses strong professional backgrounds and extensive R&D experience, characterized by seamless collaboration and high execution efficiency. We look forward to the company’s drugs reaching the market as soon as possible to benefit a broad population of oncology patients. Through this investment by Zhejiang United Investment Group/Zhejiang Silk Road Fund, we aim to empower TYK medicines to accelerate drug commercialization and market expansion, thereby contributing to the well-being of society.

Dr. Guowen Zou, Partner at Kaicheng CapitalStatement: Kaicheng Capital is honored to have assisted TYK medicines in completing this round of financing. The company’s innovative oncology product pipeline holds substantial market potential, effectively balancing the high risks and homogenization inherent in drug development. Through a forward-looking and differentiated project initiation strategy, TYK medicines’ pipeline includes both late-stage clinical candidates with high certainty of success and highly innovative agents progressively entering clinical trials. Notably, TY-2136b has entered into a strategic collaboration with Livzon Pharmaceutical Group, fully demonstrating the company’s robust R&D capabilities. We look forward to the early market launch of TYK medicines’ products, thereby benefiting a broad patient population.

Houji Capital is a professional asset management platform rooted in China’s capital market, with extensive experience and outstanding professional capabilities. It is committed to deep collaboration with exceptional entrepreneurs and managers, leveraging diverse strategies and tools in the private equity market to deliver sustained and robust financial returns for its partners, while also focusing on long-term, sustainable social value creation.

Since its establishment in July 2015, Houji Capital has managed over RMB 5 billion in assets, completed mergers and acquisitions, private placements for listed companies, and equity investments in 24 enterprises, among which 14 have achieved IPOs, securitization, or exit.

Houji Capital’s portfolio companies include Fulin Precision (300432.SZ), Tianhao Environment (300332.SZ), and Tongwei Co., Ltd. (600428.SH). Its investments in the healthcare sector include Yifeng Pharmacy (603939.SH), RayGene (688217.SH), Yuekang Pharmaceutical (688658.SH), and Tianguangshi Biopharma, which is planning to list in Hong Kong.

Qianhai Yangtze River Fund Management (Shenzhen) Co., Ltd. (hereinafter referred to as “Yangtze River Fund”) was established in 2016 and is a private equity fund manager registered and filed with the Asset Management Association of China. It is a private equity investment and management institution focusing on strategic emerging industries. The Yangtze River Fund team possesses extensive industrial resources in semiconductors, healthcare, new energy, and artificial intelligence, along with proven experience in investment and asset management. Through systematic operations, Yangtze River Fund precisely captures systemic industrial investment opportunities. By leveraging industry chain investments as its entry point, the firm is committed to supporting the growth of high-tech and highly innovative enterprises, continuously delivering high-quality listed companies to China’s capital markets.

Zhejiang United Investment Group (hereinafter referred to as “ZJUIG”) is a large-scale joint-stock industrial-financial investment company that aggregates capital and financial resources from outstanding private enterprises in Zhejiang Province. Co-founded in April 2015 by Chint Group, Futong Group, Juxing Holding Group, Wolong Holding Group, Wanfeng Auto Holding Group, Aux Group, Sunon Group, and Hangzhou Jinjiang Group, ZJUIG pioneered the model of collaborative development and cross-sector operations among private capital in Zhejiang’s investment sector. The company has an initial registered capital of RMB 5 billion and assets under management exceeding RMB 30 billion. The Zhejiang Silk Road Fund, with a scale of RMB 2 billion, was established under the guidance of the Zhejiang Provincial Department of Commerce, led by ZJUIG, and jointly formed by the National Service Trade Fund, Zhejiang Communications Investment Group, Hangzhou Industrial Investment Group, Zhejiang Industrial Fund, and Heda Financial Services. The fund focuses on three key sectors: healthcare, technological manufacturing, and consumer services.

To date, Zhejiang United Investment Group/Zhejiang Silk Road Fund has completed nearly RMB 4 billion in investments in the healthcare sector. In addition to holding a controlling stake in the A-share listed blood products company Pailin Biopharma (000403.SZ), its portfolio includes Guobang Pharma (605507.SH), CMR Surgical, Drug Farm, Tianjing Hangzhou, Shenqi Medical, Xtalpi, FlashDX, Huadao Bio, and Robocath, among others. The invested sectors span biologics, active pharmaceutical ingredients (APIs), innovative drugs, AI-driven drug research and development, surgical robots, and minimally invasive interventional consumables.

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 mergers and acquisitions (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 New-Type Investment Banks in China” by 36Kr’s WISE awards, and listed as one of the “Top 4 Best Financial Advisory Firms in Healthcare and Life Sciences” for 2020 by Qiming Technology & Xinsheng Chuangfu.