Guoxin Pharmaceutical Completes Nearly RMB 100 Million Series B Financing to Advance Innovative Drug Clinical Research and Post-Marketing Services

Guoxin Pharma Announces Completion of Nearly RMB 100 Million Series B FinancingRecently, clinical CRO company Guoxin Pharma announced the completion of its Series B financing round, raising nearly RMB 100 million. The round was led by investors including Puhua Capital and JHF Investment, with China Venture Capital (CVCapital) serving as the exclusive financial advisor for this transaction. This marks Guoxin Pharma’s second financing within a year, following its nearly RMB 100 million Series A round in September 2020, which was backed by Approxim Fund and Tigermed.

Guoxin Pharma, established in 2008, is a renowned name in China’s clinical CRO industry. Committed to becoming the most trusted global R&D partner for pharmaceutical enterprises both domestically and internationally, the company adheres to the philosophy of “making clinical research more professional, efficient, and reliable,” and focuses on providing comprehensive clinical research solutions for innovative drugs and biological products. Guoxin Pharma has been honored as one of the Top 20 Chinese Pharmaceutical R&D Service Outsourcing Companies for three consecutive years. It is recognized as a National High-Tech Enterprise and a Zhongguancun High-Tech Enterprise, serves as an executive director unit of the Beijing Medical Economic and Health Research Association, and holds the position of executive deputy chairman unit of the CRO Branch of the China Association for Pharmaceutical Quality Management.

Guoxin Medicine’s core management team comprises seasoned medical and operational executives from multinational corporations such as Pfizer, Takeda, Parexel, PRA, and INC, enabling the company to deliver high-quality services to pharmaceutical groups and leading innovative biotech firms. Guoxin Medicine has established in-depth collaborations with over 900 Grade A tertiary hospitals, more than 600 clinical research institutions, and over 160 pharmaceutical companies across China, having successfully completed more than 380 clinical trials to date.

Driven by domestic pharmaceutical policy reforms and the engineer dividend, the clinical CRO industry has entered a period of rapid development. In recent years, Sinopharm Medicine has continuously accelerated its strategic layout in clinical research for innovative drugs and post-marketing real-world studies. It has introduced high-end talents, including overseas-returning scientists and senior industry experts, to help clients conduct clinical trials with higher quality and greater speed through more professional and efficient services, thereby improving R&D efficiency. Meanwhile, the company is actively expanding its post-marketing study business. By conducting real-world studies on innovative drugs after their launch, it assists these drugs in being included in various drug formularies and clinical guidelines, while also expanding and clarifying indications to further explore the market potential of launched drugs.

The company’s newly signed orders for new drugs are ramping up rapidly, with a particularly significant surge in orders for innovative drugs. Meanwhile, the company is accelerating its expansion into market segments such as clinical research for innovative drugs and post-marketing real-world studies, creating new milestones and drivers of performance growth. It is also focusing on enhancing core service capabilities in clinical research, data statistics, information technology infrastructure, and medical testing.

It is projected that the domestic CRO sector will soon surpass a market size of RMB 100 billion. Against this backdrop, Guoxin Medicine has established clear strategic objectives. Following the completion of this round of financing, the company will continue to deepen its expertise in clinical research and post-marketing studies for innovative drugs. In the field of clinical research for innovative drugs, Guoxin Medicine will remain committed to providing clinical research services to innovator pharmaceutical companies, strengthening and highlighting its competitive advantages in therapeutic areas including cardiovascular diseases, oncology, orthopedics, gastroenterology, antiviral therapies, antibiotics, endocrinology, neuropsychiatry, pediatrics, gynecology, urology, ophthalmology, and dermatology, while rapidly expanding its innovative drug clinical team. In the realm of post-marketing real-world evidence (RWE) research, Guoxin Medicine will adopt an integrated design approach for blockbuster products based on big data, encompassing “market research–third-party top-level design–product positioning,” to define clinical promotion strategies and help marketed drugs expand their market presence.

In terms of scientific laboratory construction, the company will actively expand its gene and cell therapy business as well as clinical trial testing and inspection services. In the field of cell therapy, the company is collaborating with Lu Daopei Medical Group to jointly develop Good Clinical Practice (GCP) clinical trial operations at its affiliated hospitals, achieving an organic integration of clinical practice and scientific research, and establishing a research-oriented hospital with significant advantages in the field of CAR-T cell therapy. Additionally, through strategic partnerships with institutions such as the Fifth Affiliated Hospital of Guangzhou Medical University and the Second Affiliated Hospital of Chongqing Medical University, the company is building a scientific translation service platform for gene and cell therapy. Leveraging clinical resources, it is actively conducting cell therapy services and Investigator-Initiated Trials (IITs). In the area of medical laboratory services for clinical trials, the acquisition of the Guangzhou Medical University New Drug Creation Laboratory (equipped with full CNAS accreditation) enables the provision of central laboratory specimen testing, Biomarker laboratory services, and Therapeutic Drug Monitoring (TDM) services for enterprise clients. This supports the comprehensive development of an innovative “end-to-end” biopharmaceutical R&D platform, facilitating the company’s strategic shift towards businesses including biomarker testing, medical translation, precision medicine laboratories, drug development, and Cell Therapy CDMO platforms, thereby deeply positioning itself in the frontier drug development services sector.

As the projects funded by this round of financing are gradually implemented, the Company will continuously refine its industrial chain layout, expand its business and profit scale, and build a large-scale medical and operational team that aligns with international practices and meets global standards, thereby providing high-quality clinical research services for innovative drug clinical trials and post-marketing studies.

Chen Yongqing, Founder and Chairman of Guoxin PharmaceuticalHe stated, “2021 will be a promising and booming year for the biopharmaceutical industry. The COVID-19 pandemic has drawn extensive attention from the government and investment institutions to China’s pharmaceutical R&D sector. National policies encouraging pharmaceutical innovation will inevitably drive the sustained and rapid progress and development of the CRO industry, positioning Guoxin Medicine at a fortunate historical juncture. We, the team at Guoxin, will continue to uphold our principles of ‘staying true to our original aspiration, respecting life, and prioritizing quality.’ With the addition of numerous high-caliber international talents and the support and empowerment of renowned investment institutions, we will accelerate corporate upgrading and iteration, strive for excellence, and aim for an early initial public offering (IPO).”

Li Yang, Executive Director of Puhua Capitalstated: “Guoxin Medicine has accumulated substantial industry experience over a prolonged period, witnessing the series of developmental transformations in China’s pharmaceutical sector—from traditional Chinese medicine and generic drugs to innovative new drugs. The team has built considerable expertise in responding to and addressing both regulatory policy changes and client needs. With continuous team expansion and the introduction of high-caliber talent, Guoxin has made significant strategic layouts across multiple stages, including regulatory registration and post-marketing clinical trials, as well as in various therapeutic areas such as vaccines, rare diseases, and cell therapies, thereby providing comprehensive, one-stop solutions to meet client requirements. We look forward to their mutual success and shared growth with clients.”