Canary Biotech Completes RMB 560 Million Series D Financing Led by Alibaba

VCBeat (WeChat ID: vcbeat) learned at the earliest opportunity that,On October 15, 2021, Creative Biosciences (Guangzhou) Co., Ltd. (“Creative Biosciences”) officially announced the completion of its Series D financing round totaling RMB 560 million.This funding round has once again garnered favor from top-tier investment institutions. Led by Alibaba, with continued support from existing shareholder IDG Capital, the round saw participation from prominent investors including China Renaissance New Economy Fund (under China Renaissance), Keytone Capital, ABC International, and Henglu Assets. China Renaissance served as the exclusive financial advisor.

The funds raised in this financing round will be primarily allocated to three areas: first,Expand the Product Pipeline, further promoting the innovation of colorectal cancer screening products, as well as the research and development, design, and clinical trials of early screening products for various high-incidence tumors such as lung cancer, bladder cancer, cervical cancer, and liver cancer. Second,Expand Sales Channels, strengthen the layout in the fields of healthcare, big health, and public health, and explore international markets. Thirdly,Team Buildingetc.

Since its establishment in 2015, Creative Biosciences has been dedicated to the research and development, manufacturing, and sales of products for early cancer diagnosis, including Colotect® (Human SDC2 Gene Methylation Detection Kit). Its flagship product, Colotect®, received approval from the National Medical Products Administration (NMPA) for official market launch on November 20, 2018.

Since its approval,The product has obtained pricing and billing codes in 18 provinces and municipalities, and has been adopted by more than 600 medical institutions, including over 300 Grade A tertiary hospitals.To date, over 200,000 tests have been conducted in hospitals, third-party testing institutions, and Creative Biosciences’ clinical laboratories. The product has demonstrated excellent performance in real-world applications across medical institutions and community settings, detecting a significant number of early-stage cancers and precancerous lesions. It has garnered high recognition from experts, the public, and local governments, becoming a key tool for colorectal cancer screening. Beyond colorectal cancer, the company has made substantial progress in developing early screening products for other prevalent cancers, including lung, bladder, liver, and cervical cancers. It has also invested heavily in the research and development of fully automated end-to-end equipment and achieved self-sufficiency in the production of core raw materials.

Dr. Zou Hongzhi, Founder of Creative Biosciences and Inventor of Non-Invasive Early Screening Technology for Colorectal CancerHe stated, “We have established a strong presence in the field of colorectal cancer screening, which is the first aspect that has attracted interest from investment firms. Second, our R&D pipeline is robust, with multiple projects currently underway. Furthermore, although we entered the market later than our peers, we have achieved rapid progress in market expansion. Since our establishment in 2015, achieving notable results in this niche sector within six years demonstrates our team’s execution capabilities. For these reasons, we have garnered favor from capital markets.”

As the lead investor in this round,Su Zhiqiang, Investment Director of Alibaba’s Strategic Investment Departmentstated: “High-quality products for early cancer screening hold significant clinical value and social importance, and Colosense has garnered widespread recognition from the market and the industry. The company’s robust pipeline and products under development enable it to provide customers with comprehensive cancer screening solutions. We are confident in the innovative capabilities of the Creative Biosciences team. Alibaba’s extensive strategic layout across digital health, internet healthcare, and medical insurance will empower Creative Biosciences’ early cancer screening initiatives, helping the company emerge as an industry leader.”

According to Dr. Zou Hongzhi, the outbreak of the COVID-19 pandemic has led governments and the public to place increasing emphasis on public health. Against this backdrop, Creative Biosciences established a public health team led by Dr. Zhao Jin. In addition to continuing to strengthen its medical channels, the company is actively expanding into the public health sector and collaborating with government entities and financial centers. As the pandemic situation improves, the company plans to resume its overseas expansion strategy, which was put on hold two years ago, and extend its product offerings to international markets.

It is reported that Guan Xin, the company’s Vice President, previously established a dedicated health and wellness team responsible for strategic planning and marketing across the full product portfolio in this sector. The company is currently making rapid progress in areas such as physical examinations, insurance, internet services, and medical platforms.

Dr. Zou Hongzhi stated, “Alibaba’s lead investment will significantly support our future strategic layout and business expansion in areas such as general health and smart healthcare. Alibaba has established a profound presence in the medical sector. With Alibaba’s backing, we can leverage their platform to promote our early screening products and drive their widespread adoption among the general population. Furthermore, their channels in general health, internet healthcare, and medical insurance can empower our products.”

On August 25, the Beijing Municipal Healthcare Security Administration issued Document No. 23 [2021] of Jing Yibao, which included gene methylation testing as a laboratory diagnostic item in Class A medical insurance services and Class A work-related injury insurance services, allowing examinees to be fully reimbursed for the testing costs.

In response, Dr. Zou Hongzhi stated, “The inclusion in the national medical insurance scheme has resolved the payment issue, thereby enhancing product credibility and acceptance. Furthermore, as the capital city, Beijing can play a demonstrative and leading role, which is highly beneficial for promoting nationwide coverage under the medical insurance system. Therefore, this represents a significant positive development for our company and the industry as a whole. However, to achieve successful promotion through medical channels, the most critical factors remain product quality and service—two areas that we have consistently emphasized and continue to strengthen.”

Creative Biosciences (Guangzhou) Co., Ltd. is a high-tech biotechnology company founded by a team of distinguished scientists. It specializes in the research and development, manufacturing, sales, and provision of testing services for early cancer diagnostic products, such as the Colotect® non-invasive colorectal cancer detection kit, as well as related automated testing equipment. Since its establishment in 2015, Creative Biosciences has been dedicated to the R&D, production, and marketing of early tumor diagnostic products, including Colotect® (Human SDC2 Gene Methylation Detection Kit). Its flagship product, Colotect®, received approval from the National Medical Products Administration (NMPA) for market launch on November 20, 2018. It has been included in the "Expert Consensus on Early Screening Process for Colorectal Cancer in China (2019, Shanghai)," the "Chinese Guidelines for Diagnosis and Treatment of Hemorrhoids," and the "Chinese Expert Consensus on Laboratory Diagnostic Techniques for Early Colorectal Cancer and Precancerous Lesions," establishing it as a first-in-class product in the field of early colorectal cancer screening. Consequently, the company has been honored with the First Prize of the Guangdong Provincial Science and Technology Progress Award, the First Prize of the Ministry of Education’s Science and Technology Progress Award, and the Second Prize of the Chinese Medical Science and Technology Award. Furthermore, leveraging its cutting-edge scientific research capabilities and numerous independent intellectual property rights, Creative Biosciences has expanded its portfolio beyond Colotect® to include early diagnosis and screening products for various prevalent cancers, such as lung, bladder, liver, and cervical cancers, across multiple technology platforms. The company has completed multiple rounds of high-quality venture financing, emerging as a highly regarded star enterprise within the industry. Guided by the noble mission of "Safeguarding Human Health," Creative Biosciences strives to achieve breakthroughs and development in the early diagnosis, treatment, and prognostic monitoring of chronic diseases, particularly tumors, ultimately benefiting the public.

Alibaba Group’s mission is to make it easy to do business anywhere. It aims to empower enterprises by helping them transform their marketing, sales, and operational methods to enhance efficiency. The company provides technical infrastructure and marketing platforms for merchants, brands, retailers, and other businesses, enabling them to leverage new technologies to engage with users and customers and operate more efficiently. Alibaba Group’s businesses span commerce, cloud computing, digital media and entertainment, and innovation initiatives.

IDG Capital is a globally leading private equity investment firm that pioneered venture capital operations in China in 1993. Over nearly three decades of development, the firm has managed cumulative assets exceeding RMB 150 billion, invested in more than 1,000 outstanding companies worldwide, and successfully exited over 300 investments. IDG Capital focuses on leading enterprises in sectors such as Technology, Media, and Telecom (TMT), healthcare, advanced manufacturing and clean energy, new consumption and services, and culture and entertainment. Its investment coverage spans all stages, including start-up, growth, mature, and mergers and acquisitions/restructuring, with investment sizes ranging from millions to hundreds of millions of US dollars.

China Renaissance Group launched its private equity management business in 2013, with assets under management (AUM) exceeding RMB 61 billion as of June 30, 2021. China Renaissance New Economy Fund is a private equity fund under China Renaissance, currently managing three RMB-denominated funds and three USD-denominated funds. The fund focuses on the intelligent economy sector, with investment areas spanning smart industries, smart healthcare, smart technologies, smart consumption, and smart enterprise services.

CDH Investments is one of China's earliest private equity investment firms, established in 2001 with over 20 years of investment management experience. Headquartered in Shenzhen, the company has branches in Beijing, Shanghai, Hong Kong, Hefei, and Nanjing. To date, CDH Investments has managed more than 80 funds across various categories, including angel investing, venture capital (VC), private equity (PE), mergers and acquisitions, private placements, and private securities. The total assets under management approach RMB 60 billion, ranking among the top in the industry nationwide.

ABC International Holdings Limited is a professional investment banking platform meticulously established by Agricultural Bank of China in Hong Kong, founded in November 2009. The Company currently operates specialized financial service subsidiaries, including financing, investment management, asset management, and securities firms. In Hong Kong, it provides comprehensive, integrated financial services encompassing IPO sponsorship and underwriting, bond issuance and underwriting, financial advisory, asset management, direct investment, institutional sales, securities brokerage, and securities consulting.

Shanghai Henglu Asset Management Co., Ltd. is a private equity investment firm primarily focused on innovative investments and industrial mergers and acquisitions. To date, the company and its core team have cumulatively invested over RMB 10 billion in external projects, with the current scale of assets under management for existing funds amounting to approximately RMB 5 billion. Anchored in serving China’s overarching strategy for high-quality development, the company’s investment portfolio spans innovative healthcare, new energy, semiconductors, and related hard-tech industry chains. Emphasizing entrepreneurship, the company is committed to identifying outstanding entrepreneurs in niche sectors and providing services such as capital planning, resource empowerment, and industrial M&A support, thereby facilitating sustained corporate growth and excellence.