Changxi Pharmaceuticals Secures Nearly RMB 200 Million in Series C Financing Led by Longpan Investment

October 11, 2021Hangzhou Chance Pharmaceuticals Co., Ltd.(abbreviated as: Chance Pharmaceuticals) – a clinical-stage biopharmaceutical company dedicated to the discovery, research and development, and industrialization of novel therapeutics for diseases that severely impact human quality of life, including respiratory disorders.Announces Completion of Nearly RMB 200 Million in Series C Financing, Led by LapamCapital, with Participation from China Merchants Securities Co., Ltd. and Heda Capital, and Super Pro Rata Participation from Existing Shareholder Guozhong Capital. Kaicheng Capital served as the exclusive financial advisor for this round of financing.It is reported that the funds from this round will be used to support the development of innovative inhaled drug delivery products, external commercial collaborations, and the construction of new production facilities.

“We are delighted that LapamCapital, a top-tier fund focused on the biopharmaceutical sector, led this round of financing, and we sincerely thank both new and existing investors for their support and trust in Chance Pharmaceuticals. We are also proud that our rapid progress in product development strategy, R&D milestones, and external collaborations has been recognized by leading investors.”Dr. Chen Donghao, Founder and CEO of Chance Pharmaceuticals, stated:“The completion of our Series C financing will help us further consolidate our strategic position, accelerate the development of multiple projects and the construction of industrialization bases meeting international standards, and enhance our unique inhalation technology platform, enabling us to develop truly innovative products. Leveraging the Company’s inherent innovation DNA and strong execution capabilities, we will continue to dedicate ourselves to developing disruptive drugs for China and the global market.”

Mr. Yu Zhihua, Chairman of LapamCapital, stated:“We are highly optimistic about the future market potential of innovative inhaled formulations. Chance Pharmaceuticals possesses globally leading formulation development technologies, an integrated drug-device R&D system, and a proprietary inhaler development and evaluation platform. Its experienced and complementary R&D team is well-positioned to rapidly bring innovative inhaled drugs with significant clinical potential to market, thereby benefiting patients.”

Headquartered in Beijing, Lapam Capital is a leading venture capital firm in China specializing in the biopharmaceutical sector. The firm currently manages four funds with a total asset size exceeding RMB 4 billion, including the only biopharmaceutical-focused fund solely capitalized by the National Social Security Fund. Its investment strategy focuses on innovative drugs and innovative medical devices, covering startups, early-to-mid stage, and growth-stage companies. To date, Lapam Capital has invested in nearly 50 innovative drug companies and more than 10 innovative medical device companies, including market leaders such as Beta Pharma, RemeGen, Clover Biopharmaceuticals, SWM Bioscience, Kawin Technology, BinHui Bio, and Aier Eye Hospital Group (Aibo Nuode). Many partners in Lapam Capital’s management team possess over 20 years of experience in the international and domestic biopharmaceutical industries, enabling them to provide comprehensive value-added services to portfolio companies.

Guozhong Capital currently manages two physical funds under the National SME Development Fund. Its subsidiary, Guozhong Venture Capital (Shenzhen Guozhong Venture Capital Management Co., Ltd.), manages the first physical fund of the National SME Development Fund, while Guozhong Changrong (Shenzhen Guozhong Changrong Asset Management Co., Ltd.) manages the Phase II Fund of the National SME Development Fund, with combined assets under management exceeding RMB 10 billion. Guozhong Capital advocates an investment philosophy of "research-first and integration of investment and research," guiding investments through in-depth industry chain analysis. It focuses on investment opportunities in strategic emerging industries, prioritizing outstanding enterprises in sectors such as big data, cloud computing, cybersecurity, and enterprise services; semiconductors, electronic information technology, and artificial intelligence; new consumption and internet applications; new energy vehicles and intelligent driving; new materials, new energy, ecological protection, and intelligent equipment; as well as biopharmaceuticals and general health. Currently, Guozhong Capital has established a relatively comprehensive layout across multiple industry chains, including new energy vehicles, intelligent driving, semiconductors and electronic components, and biopharmaceuticals. Representative portfolio companies include Mindray Medical, DouYu, Jiayuan Technology, Zeltz Pharmaceuticals, RemeGen, Shijia Photons, Hymson, and Ruoyuchen.

China Merchants Securities Investment Co., Ltd. is a wholly-owned alternative investment subsidiary of China Merchants Securities, with a registered capital of RMB 7.1 billion. It primarily engages in equity investments and financial product investments. Aligning with national policies, the company focuses on investment opportunities in sectors such as healthcare, new energy and new materials, intelligent manufacturing, technology, and semiconductors, striving to provide comprehensive, full-industry-chain financial services to its portfolio companies. In the healthcare sector, it has invested in leading players in niche markets, including Yiju Medical, Aokeda, Ruifeng Biotechnology, Mabwell, Lu Daopei Healthcare Group, and Desano.

Hangzhou Heda Industrial Fund Investment Co., Ltd.(Heda Capital), focusing on partnerships with renowned domestic and international investment institutions in vertical industry sectors, jointly establishing 27 sub-funds with a total scale of RMB 18 billion. The Heda Biopharmaceutical Industry Fund is affiliated with Hangzhou Heda Industrial Fund Investment Co., Ltd. The fund has completed three phases of fundraising and has invested in 17 projects, including Duoxi Bio, Mingfeng Medical, and I-Mab Biopharma, with nearly half of them listed on the 2020 Hangzhou Quasi-Unicorn List.

Chance Pharmaceuticals is a clinical-stage, high-tech biopharmaceutical company whose core business focuses on the discovery, research and development, and industrialization of novel therapeutics for diseases that significantly impair patients’ quality of daily life, including respiratory disorders.

WinX Capital is a leading investment bank in China’s healthcare sector. Its founding team includes five PhDs in Global Finance from PBC School of Finance, Tsinghua University, while its frontline professionals boast an average of over 10 years of experience in management, investment, and M&A, with cumulative transaction values exceeding RMB 30 billion. Headquartered in Beijing and Shanghai, the firm covers more than 3,000 active institutional investors and industrial groups. In 2020, WinX Capital was ranked among the “Top 5 Most Promising New-Type Investment Banks in China” by 36Kr’s WISE 2020 list, and named one of the “Top 4 Best Financial Advisory Firms in Healthcare” for 2020 by Qiming Technology & Xinsheng Chuangfu.