Yikon Biotech Completes $100 Million Series B Financing with HAOYUE Capital as Exclusive Financial Advisor

VCBeat has learned that Virtue Diagnostics, a global platform-based innovation leader in the IVD sector, recently announced the completion of its $100 million Series B financing round. The round was co-led by HongShan and Morningside Venture Capital, with Oriza Holdings participating as a follow-on investor. Existing shareholders Lilly Asia Ventures and PerkinElmer Ventures continued to increase their investments. Joy Capital served as the exclusive financial advisor for this financing round.

Founded in 2019, Virtue Diagnostics is a global platform-based innovation leader in the IVD industry. Leveraging its industrialization base in Suzhou and R&D center in Singapore, the company has established a global industrial chain. It expands its domestic market through innovative technology platforms such as clinical mass spectrometry, panoramic pathology, and molecular diagnostics, while actively entering emerging overseas markets via chemiluminescence and point-of-care testing (POCT) platforms, employing diverse commercial strategies including collaborative R&D, investment, and mergers and acquisitions.

Over the past two decades, China has achieved a high degree of import substitution for in vitro diagnostic (IVD) products with low technological barriers. In the next twenty years, the Chinese IVD industry will evolve into an innovation-driven market. Meanwhile, in emerging overseas markets, the current supply-demand match for IVD products remains low, creating an urgent need for high-throughput, automated, and affordable solutions, which signifies substantial market potential. Multi-platform innovative companies with global footprints are gradually replacing traditional channel- or product-focused companies confined to single markets, thereby leading the development of the IVD industry.

For the domestic market, clinical mass spectrometry is one of Virtue Diagnostics’ core platforms for precision diagnosis and treatment. As PerkinElmer’s exclusive strategic partner for clinical mass spectrometry products in China, Virtue Diagnostics manufactures and has obtained regulatory approval for the QSight 420MD triple quadrupole mass spectrometry detection system, which was launched in the third quarter of 2021. The company has also completed product filings for full-spectrum vitamin assays and various steroid hormone tests. Through the successful acquisition of Beijing Bainuo Panoramic, Virtue Diagnostics is actively expanding its panoramic pathology portfolio from research services to clinical diagnostics. In the area of molecular diagnostics, the company leverages global resources to strategically develop multiplex PCR testing solutions that offer higher throughput and cost control. For emerging overseas markets, Virtue Diagnostics utilizes its global industrial chain and R&D, production, and operational resources to deeply penetrate high-demand segments such as chemiluminescence immunoassays and point-of-care testing.

In the coming years, Virtue Diagnostics will complete several collaborations, investments, and mergers and acquisitions involving new technologies. Through diversified business strategies, the company will further introduce, integrate, and develop multiple innovative technology platforms from both domestic and international sources, while actively expanding in vitro diagnostics (IVD) business opportunities in emerging markets. This will enable the provision of global diagnostic technologies and effective clinical solutions to China and overseas emerging markets.

Mr. Zhang Sheng, Founder of Virtue DiagnosticsHe stated that after two decades of rapid growth in China’s in vitro diagnostics (IVD) industry, we see two major opportunities ahead: first, continuing to introduce and develop innovative products and services in the Chinese market to address clinical pain points; and second, integrating China’s diagnostic product resources to expand into global markets. I believe that Virtue Diagnostics’ team, with its extensive industry experience, technological innovation capabilities, and international background, will enable us to seize greater opportunities over the next twenty years. We are deeply grateful to the investors in this round for their recognition, to our existing shareholders for their continued support, and to Haoyue Capital, our financing partner in this round. The ample funding will allow us to continuously attract more talent and technology, expand into broader markets, and provide more and better diagnostic products and services to clinical customers in China and around the world.

Ms. Yang Yunxia, Partner at HongShanIt was stated that Virtue Diagnostics focuses on building internationally competitive diagnostic technology platforms, including mass spectrometry, digital pathology, and novel molecular diagnostics, and leverages these diverse technological platforms to provide effective clinical testing solutions for patients at different stages of diseases globally. We highly recognize the global perspective, technical capabilities, and execution strength of the Virtue Diagnostics team, and believe that under the leadership of its founder, Mr. Zhang Sheng, Virtue Diagnostics is poised to become a global platform leader in the IVD industry. HongShan has been committed to facilitating the rapid growth of innovative medical device and diagnostic companies, with the aim of delivering better products to patients more quickly.

Ms. Lu Huang, Morningside Venture CapitalIt was stated that after more than two decades of development, China’s in vitro diagnostics (IVD) industry has achieved significant scale and initially completed import substitution. Over the next 10–20 years, domestic market growth driven by technological iterations, coupled with rapidly increasing demand in emerging international markets, will become the primary drivers of the industry’s development. The Virtue Diagnostics team is one of the few in China’s IVD sector that combines successful local entrepreneurial experience with international business operational expertise. In just two years since its establishment, the company has grown rapidly and made initial strides in introducing new technologies and fostering international business collaborations. Morningside Venture Capital is pleased to become a shareholder of Virtue Diagnostics. Leveraging its international background and global resources in capital, industry, and technology, Morningside will support Virtue Diagnostics in becoming a leader in the new phase of development within China’s IVD industry.

Project Lead, Oriza HoldingsIt is stated that the most outstanding IVD companies in China will inevitably be globalized enterprises. The domestic IVD industry is entering a phase of innovation-driven development, while overseas emerging markets present significant unmet needs and strategic opportunities. Virtue Diagnostics allocates talent and innovative resources on a global scale. Through diverse commercial strategies, it pursues global expansion by integrating globalization, multi-technology platforms, and the synergistic linkage of domestic and international industrial and innovation chains, thereby establishing deep industrial capabilities. Led by its founder, Mr. Zhang Sheng, the management team of Virtue Diagnostics is a top-tier team rare in the industry, boasting strong industry insights, extensive experience, and an international perspective. We look forward to Mr. Zhang Sheng continuing to lead Virtue Diagnostics in consolidating its foundation in China while expanding globally, providing effective diagnostic products and clinical solutions for physicians and patients.

Ms. Zou Jieyu, Managing Director of Lilly Asia VenturesLAV expressed strong alignment with Virtue Diagnostics’ vision—to provide diversified, innovative, integrated, affordable, multi-disease, and full-stage IVD solutions to the world—as well as its “bring in, go global” business model. Over the two years since its establishment, the Virtue Diagnostics team has demonstrated exceptional leadership and execution capabilities, earning widespread recognition within the industry. LAV is honored to participate in Virtue Diagnostics’ growth journey and looks forward to collaborating with fellow investors to help the company achieve greater success in the future.

Mr. Duan Liancheng, Managing Partner of PerkinElmer VenturesIt was stated that under the pressure of volume-based procurement (VBP) policies, the future development of domestic enterprises will rely more heavily on innovation capabilities, adapting better to healthcare reform policies by increasing the proportion of new products. In addition to revenue generated from innovation, overseas expansion has become a new source of incremental revenue for in vitro diagnostics (IVD) companies, with smaller but fast-growing developing countries emerging as the primary battleground. The Virtue Diagnostics team possesses an international perspective and cross-border management experience, enabling it to better achieve goals related to innovative development and overseas market expansion.

Mr. Ding Yameng, Founding Partner of Haoyue CapitalHaoyue Capital expressed that it is honored to serve as the exclusive financial advisor for Virtue Diagnostics’ current round of financing. Mr. Zhang Sheng, founder of Virtue Diagnostics, is a rare and outstanding leader in China’s in vitro diagnostics (IVD) industry, possessing unique strategic vision and exceptional capability in commercial execution. Virtue Diagnostics’ strategy of “leveraging innovative technologies to serve the Chinese market and integrating industry resources to expand into emerging markets,” along with its innovative platform-based layout, will help the company’s products establish a strong foothold in China and expand globally.

Virtue Diagnostics, established in June 2019, is a provider of in vitro diagnostic (IVD) products and services dedicated to global platform-based innovation. The company has set up an industrialization base in Suzhou Industrial Park and a research and development center in Singapore, deploying across the global market through various commercial strategies such as collaborative R&D and investment mergers and acquisitions. Focusing on oncology, maternal and child health, and chronic diseases, Virtue Diagnostics expands its domestic presence in China by leveraging innovative technology platforms including clinical mass spectrometry, comprehensive pathology, and molecular diagnostics, while actively entering emerging overseas markets through strategic deployments in chemiluminescence and point-of-care testing (POCT) platforms. The company has assembled a team of management professionals with extensive experience in the IVD industry and a global perspective, possessing strong capabilities in R&D, operations, and commercial implementation.

HongShan has always been committed to helping entrepreneurs build enduring, great companies by providing its portfolio companies with abundant global resources and valuable historical experience. As “entrepreneurs behind entrepreneurs,” HongShan focuses on investment opportunities in three sectors: TMT, healthcare, and consumer goods/services. Over the past 16 years, HongShan has invested in more than 900 enterprises characterized by distinct technological features, innovative business models, high growth potential, and strong development prospects.

Morningside Ventures, a member of the Morningside Group, conducts high-tech venture capital investments globally. Since its establishment in 1986, Morningside Ventures has been dedicated to supporting biotechnology companies in their start-up and growth stages, with investments spanning new drug development, clinical diagnostics, medical devices, healthcare services, and digital health. The firm boasts an outstanding investment management team, most of whose members have experience in corporate operations and entrepreneurship, and possess in-depth understanding of the frontiers of life sciences, the healthcare industry, as well as the entrepreneurial and investment landscapes across different regions.

Oriza Holdings has focused on the equity investment sector since its establishment in 2001. With assets under management exceeding RMB 100 billion, it is one of China’s leading equity investment firms. Since its inception, the company has prioritized investment opportunities in emerging industries such as integrated circuits, biopharmaceuticals, artificial intelligence, and nanotechnology applications, while remaining committed to supporting the real economy and promoting industrial transformation and upgrading. To date, Oriza Holdings has made direct investments in over 1,100 projects, and its fund-of-funds has invested in 144 subsidiary funds.

Lilly Asia Ventures (LAV) is a premier venture capital fund dedicated to investing in the life sciences and healthcare sectors. Headquartered in Shanghai, China, with offices in Hong Kong, China, and Silicon Valley, USA, our long-term vision is to build exceptional companies that combat diseases and improve human health through breakthrough products, and to serve as a trusted partner for outstanding entrepreneurs seeking smart capital.

PKI Ventures is an industry-focused investment fund initiated by PerkinElmer, a U.S. publicly listed company, with a focus on investments in the life sciences and healthcare sectors. PKI Ventures has consistently adhered to its investment philosophy of deep industry engagement, precise investing, and coordinated development. Leveraging PerkinElmer’s decades of global industry expertise and commercial channels in international markets, PKI Ventures aims to provide its portfolio companies with substantial industry resources.

Haoyue Capital was founded in January 2014, dedicated to becoming a bridge connecting China’s healthcare industry with capital. Its research and transaction coverage spans multiple sub-sectors, including biopharmaceuticals, innovative medical devices, IVD and precision medicine, healthcare services, and smart healthcare. The Haoyue Capital team comprises senior investment bankers with years of deep expertise in China’s healthcare sector. By closely tracking market dynamics and investment trends in healthcare over the long term, the firm publishes weekly healthcare investment reports and thematic research studies, offering Haoyue’s perspectives on new policies and emerging frontiers.