Sihuan Pharmaceutical's Subsidiary Xuanzhu Biopharma Completes Over RMB 600 Million Series B Financing Led by Sunshine Life Insurance, WinX Capital as Exclusive Financial Advisor

VCBeat has learned that Sihuan Pharmaceutical (00460.HK) announced that its controlled subsidiary, XZenith Biopharm, completed a Series B financing round exceeding RMB 600 million on December 31, 2021. The round was led by Sunshine Life Insurance, with participation from prominent investors including Yifeng Capital, Zhongji Investment, Taijin Capital, SDIC Taikang, Haichuang Fund of Funds, BOC Capital, Jinjiang Xuanhong, Shaanxi Financial Holdings, Wanxin Capital, Denovo Capital, and Huayi Capital. WinX Capital served as the exclusive financial advisor for this financing round.

This financing round follows the RMB 963 million Series A strategic investment led by SDIC Investment Promotion in August 2020. The introduction of prominent strategic investors in both rounds fully demonstrates that XZenith Biopharm’s sustained innovation capabilities and Sihuan Pharmaceutical Group’s forward-looking strategic layout have gained recognition from the capital market, and will accelerate XZenith Biopharm’s journey to “become an innovative pharmaceutical enterprise rooted in China with a global vision.”

As the first spin-off innovative drug subsidiary under Sihuan Pharmaceutical Holdings Group, XZenith Biopharm will continue to increase investment in the development and global layout of its innovative drug pipeline, while continuously enhancing its independent innovation capabilities.

Dr. Che Fengsheng, Chairman and Executive Director of Sihuan Pharmaceutical Holdings Group Ltd.stated, “We are delighted to see Sunshine Insurance and several other renowned institutions recognize Sihuan Pharmaceutical Holdings Group’s strategic planning and the prospects of XZenith Biopharm. Adhering to a dual-drive strategy centered on independent innovative R&D and the incubation and cultivation of high-growth new businesses, Sihuan Pharmaceutical aligns with industry development trends, maintains innovation-led growth, and continuously increases group R&D investment. This approach aims to facilitate Sihuan Pharmaceutical’s transformation toward innovation and establish a new paradigm as an international pharmaceutical technology enterprise. With 20 years of deep engagement in the pharmaceutical industry, the extensive experience and industry resources accumulated by Sihuan Pharmaceutical will undoubtedly support XZenith Biopharm’s transition from a biotech company to a biopharma enterprise, gradually building integrated capabilities in R&D, industrialization, and commercialization, and helping XZenith Biopharm enter the capital market at an earlier stage.”

Ms. Xu Yanjun, Chairperson of XZenith Biopharmstated, “We sincerely appreciate the recognition and strong confidence demonstrated by numerous professional investment institutions in this round towards XZenith Biopharm’s team and R&D capabilities. XZenith Biopharm will continue to build a new drug R&D system centered on independent original innovation, while progressively enhancing its comprehensive strengths in overseas collaboration, industrialization, and commercialization, thereby creating a differentiated and sustainable pipeline of innovative drug products. The new investment will accelerate XZenith Biopharm’s transformation into an innovative pharmaceutical company rooted in China with a global perspective.”

XZenith Biopharm is the innovative drug subsidiary of Sihuan Pharmaceutical, a major domestic pharmaceutical and medical aesthetics group. After nearly a decade of construction and development, the company has assembled an outstanding team of nearly 400 professionals led by overseas-returned scientists. It possesses independent R&D capabilities for innovative drugs, has established a comprehensive R&D system, and holds end-to-end drug development and industrialization capabilities. Not relying on License-in arrangements or CROs, XZenith Biopharm demonstrates sustained innovation and continuous output. Leveraging the commercialization capabilities of its parent company, Sihuan Pharmaceutical, XZenith Biopharm is currently transitioning from a Biotech to a BioPharma model, gradually becoming a company with excellence in both R&D and industrialization.

In terms of R&D platform capabilities, XZenith Biopharm has established two major R&D platforms for small molecules and large molecules, covering areas such as small molecules, monoclonal antibodies, bispecific antibodies, fusion proteins, bispecific antibody-drug conjugates (ADCs), and protein degradation, with the ability to sustain R&D output.

From the perspective of product pipeline layout,XZenith Biopharm focuses on the research and development of novel drugs in frontier therapeutic areas, including oncology, metabolism, anti-infectives, and gastroenterology, with a commitment to developing Class 1.1 innovative therapeutics. In oncology, its primary focus is on breast cancer, lung cancer, and solid tumors; in metabolism, it targets conditions such as diabetes and non-alcoholic steatohepatitis (NASH). XZenith Biopharm has established a comprehensive portfolio targeting key mechanisms in breast cancer, positioning itself as one of the companies with the most extensive pipeline in the breast cancer sector in China.

As of now, XZenith Biopharm has more than 25 products in its pipeline, with two products at the NDA stage,One product, annalazone sodium (a novel drug for the treatment of duodenal ulcers), has completed its New Drug Application (NDA) submission and acceptance, with approval and market launch expected in the second half of this year. Another product, jagleflozin (an SGLT-2 inhibitor for the treatment of diabetes, which has been transferred to Huisheng Bio), is poised to submit its NDA. The core products, including the next-generation CDK4/6 inhibitor piraciclib and the ALK/ROS1 dual-target inhibitor XZP-3621, have both initiated Phase III clinical trials. Additionally, there are 11 other products currently in various stages of clinical development (Phases I–III), with 1–2 projects expected to enter clinical development annually in the future.

Furthermore, XZenith Biopharm has strengthened its international business development (BD) expansion in recent years.The Company has transferred the commercialization rights for KM118, a biosimilar of the large-molecule biologic pertuzumab, to its strategic investor, Double-Crane Pharmaceutical, with Phase III clinical trials expected to commence in the near future. Additionally, out-licensing initiatives are ongoing across multiple therapeutic areas, including oncology, non-alcoholic steatohepatitis (NASH), and anti-infectives. In 2021, the Company collaborated with several domestic and international biotech firms. In August, it partnered with US-based HB Therapeutics to co-develop a protein degradation platform, advancing a new drug pipeline of molecular glues targeting three first-in-class undruggable targets. In November, the Company entered into an agreement with Canada’s SignalChem Lifesciences to secure exclusive Greater China rights to a highly selective AXL inhibitor. This asset is already under collaboration with Merck overseas, and Phase II clinical trials evaluating its combination with the PD-1 inhibitor pembrolizumab (Keytruda) are imminent, targeting non-small cell lung cancer (NSCLC) and acute myeloid leukemia (AML).

Overall, XZenith Biopharm boasts an exceptionally robust R&D pipeline, highlighting its strong potential as a bio-pharmaceutical company.On one hand, by focusing on major disease areas and large markets, and adopting a multi-target strategy within the same therapeutic area, the company can achieve comprehensive coverage of key targets in priority tracks and drive deep penetration into relevant clinical departments. On the other hand, its pipeline exhibits a balanced distribution across long-, medium-, and short-term horizons. By combining highly innovative assets with products poised for rapid commercialization, it strikes an optimal balance between innovation and risk. Furthermore, the pipeline demonstrates sustained strong innovation, ensuring the submission of 1–2 Investigational New Drug (IND) applications annually, while also possessing commercialization advantages unmatched by other biotech companies.

Sihuan Pharmaceutical Holdings Group Ltd. (“Sihuan Pharmaceutical” or the “Company”, together with its subsidiaries, the “Group”) (HKEX Stock Code: 0460) was founded in 2001 and listed on the Main Board of The Stock Exchange of Hong Kong Limited in 2010. It is an international pharmaceutical enterprise led by innovation, adhering to an innovation-driven strategy that balances proprietary innovation with generic drugs, possessing independent and leading self-owned production, research, and development technology platforms, as well as a rich global product pipeline and a mature, excellent sales system. Sihuan Pharmaceutical focuses on high-growth therapeutic areas including medical aesthetics, cardiovascular and cerebrovascular diseases, the digestive system, anti-infectives, oncology, psychiatry and neurology, and diabetes. By implementing a dual-wheel drive strategy of independent innovative R&D and incubating high-growth new businesses, it aims to establish itself as a leading Chinese enterprise in medical aesthetics and biopharmaceuticals.

Sunshine Life Insurance Co., Ltd. was established on December 17, 2007, with a registered capital of RMB 18.3425 billion. It is a national professional life insurance company under Sunshine Insurance Group Co., Ltd. Since its inception, Sunshine Life has maintained strong growth momentum and continuously enhanced its value. To date, the company has established 33 secondary-level institutions and nearly 1,000 tertiary and quaternary branch offices, providing customers with professional insurance coverage for life, pension, medical, health, and accident needs.

WinX Capital is a leading investment bank in China’s healthcare 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 team boasts 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 serves 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 under its WISE2020 list, and named one of the “Top 4 Best Financial Advisory Firms in Healthcare” for 2020 by Qiming Technology & Xinsheng Chuangfu.