Huaxian Pharma (Raffles Pharma) Secures RMB 150 Million Series B Funding to Accelerate Green Pharmaceutical CDMO Expansion
In August 2021, Shenzhen HwaGen Pharmaceutical Co., Ltd. (“HwaGen Pharma”), the parent company of Raffles Pharmaceuticals, completed a RMB 150 million Series B financing round. The round was led by China Reform Science and Technology Innovation Fund, with joint investments from Suzhou Xiangcheng Venture Capital, Zhoushan Tongfu, Shenzhen Hua Xia Ren He Capital Management Co., Ltd., Shenzhen Jia Yin Fund Management Co., Ltd., and other institutions. Shenzhen Pingshan Capital served as the chief advisory institution.
ShenZhen HwaGen Pharmaceutical Co., Ltd. is a one-stop small-molecule new drug CRO/CDMO enterprise, focusing on the innovative development and commercial application of green chemistry technologies in the pharmaceutical field. It provides in-depth services to renowned pharmaceutical companies both domestically and internationally, offering end-to-end solutions ranging from early-stage CRO/CMC research to CDO/CMO commercial manufacturing.
The GMP R&D and Production Base Under Construction in Daya Bay
Currently, Guangdong Raffles Pharmaceutical Technology Co., Ltd. (“Raffles Pharma”), a wholly-owned subsidiary of ShenZhen HwaGen Pharmaceutical Co., Ltd., is investing RMB 350 million to construct a green chemistry API GMP R&D and production base within the Huizhou Dayawan National Petrochemical Zone. The first phase of this project is scheduled for completion and commencement of production in the near future. Meanwhile, the drug discovery and synthesis CRO public technology platform located in the Shenzhen Pingshan National Biomedical Innovation Industrial Park has already begun operations. The operational launch of these two projects signifies that HwaGen Pharmaceutical now possesses one-stop R&D and manufacturing service capabilities compliant with GMP standards, spanning from the preclinical stage through to commercialization.
Shenzhen Pingshan CRO Public Technology Platform
The proceeds from this round of financing will be primarily used for the construction and operation of Phase II of the GMP-compliant manufacturing facility in Daya Bay, Huizhou, accelerating the development of downstream proprietary production capacity. Concurrently, the company will initiate the construction of an R&D center in East China to better serve its customers. Furthermore, it will expedite R&D efforts in areas such as AI-driven route design and automated catalyst screening, thereby further enhancing the company’s R&D capabilities and capacity.
Ye Weiping, Chairman of HwaGen Pharmaceutical“He stated, ‘This round of financing will further advance HwaGen Pharmaceutical’s R&D capabilities and production capacity layout. We are deeply grateful for the recognition from top-tier investment institutions in the industry. Leveraging our team’s decade of extensive experience in the CRO/CDMO sector, our high-standard management systems, and our premium GMP-compliant manufacturing capacity, we will work alongside our investors to promote the development of green synthesis technologies for pharmaceuticals. Our goal is to deliver exceptional solutions to global clients, reduce the costs of drug research, development, and production, and ultimately benefit the general public.’”
Owen Zhi, CEO of Guoxin Kechuang“With the rise of the global bio-tech industry and the vigorous development of emerging pharmaceutical companies, the pharmaceutical outsourcing sector continues to maintain high prosperity, providing business development opportunities for CDMO enterprises. China’s CDMO industry has entered a golden decade of rapid growth. As the leading CDMO brand in the Guangdong-Hong Kong-Macao Greater Bay Area, HwaGen Pharmaceutical boasts R&D capabilities and a management team that are both among the top tier in the industry. The strategic investment in HwaGen Pharmaceutical is a crucial step for China Reform Holdings Corporation’s Sci-Tech Innovation Fund to expand its footprint in the pharmaceutical sector, while also helping to refine China Reform Holdings’ investment landscape within the healthcare ecosystem. We believe that under the leadership of Dr. Ye and his outstanding management team, HwaGen Pharmaceutical will achieve even more substantial long-term development.”
Yu Siyang, Partner at Hua Xia Ren He CapitalIt stated: “High-quality drug R&D and industrialization solutions have always been the core competitiveness of global CDMO companies. As a leading enterprise in the chemical API CDMO sector, HwaGen Pharmaceutical has established an integrated R&D and manufacturing service capability. Having cultivated the biomedical investment field for many years and invested in numerous biomedical enterprises, Renhe Capital will fully leverage its industry integration capabilities to support the growth and expansion of HwaGen Pharmaceutical.”
Wang Tie, Deputy General Manager of Shenzhen Jia Yin Fund Management Co., Ltd.stated, “We are honored to collaborate with Dr. Ye Weiping and his team. Shenzhen Jia Yin Fund Management Co., Ltd. focuses on investments in high-end manufacturing. We believe that, by leveraging the industrial resources of its parent company, Shenzhen Hezheng Group, Jia Yin Fund can support HwaGen Pharmaceutical’s expansion in China.”
The Guoxin Sci-Tech Innovation Phase II Fund is an equity investment fund initiated and led by China Reform Holdings Corporation, with Guoxin Sci-Tech Innovation serving as the fund manager. Guoxin Sci-Tech Innovation currently manages funds totaling nearly RMB 10 billion, primarily investing in growth-stage and mature enterprises in the field of technological innovation. It has extensive investments in next-generation information technology, healthcare and wellness, high-end equipment manufacturing, new energy, and other sectors.
Suzhou Xiangcheng Financial Holding (Group) Co., Ltd. was established in October 2017 as a comprehensive financial holding platform created by the Xiangcheng District Committee and Government of Suzhou City to integrate the district’s financial resources. Aligning closely with the district’s “3+6” industrial system and the development blueprint of “One Zone, Ten Industries, and One Hundred Parks,” Xiangcheng Financial Holding Group has actively leveraged the first-mover advantage of digital finance, designated as the district’s “No. 1 Industry.” It is committed to building a digital finance ecosystem characterized by “equity-debt linkage and integration of industry and finance,” and has developed six major business segments: equity investment, debt investment, industrial investment, digital financial services, digital information, and fintech. The group manages funds exceeding RMB 10 billion, guides subsidiary funds with a scale of over RMB 30 billion, and has directly invested in or facilitated investments through subsidiary funds in more than 300 enterprises, thereby providing financial momentum for regional industrial upgrading and transformation.
Shenzhen Hua Xia Ren He Capital Management Co., Ltd. was established in 2012. Its core management team hails from Guotai Junan Securities and China Asset Management Co., Ltd. (ChinaAMC), and it serves as the sole partner platform for Nomura Securities’ equity investment activities in China. With years of deep cultivation in the healthcare sector, the firm has invested in numerous healthcare projects, including MedPharmix (688202), Snibe Co., Ltd. (300832), Mingde Biology (002932), Kaiyin Technology (688687), and Tiansheng Pharmaceutical (002872), all of which have been listed on the A-share market.
Shenzhen Jia Yin Fund Management Co., Ltd. is the equity investment platform under Hezheng Group. Established in 1996, Hezheng Group is one of Shenzhen’s top ten real estate development companies, with total assets exceeding RMB 100 billion. As a dynamic force in China’s private equity investment sector, Jia Yin Fund is committed to specialized, refined, and robust development, aiming to build a first-class innovative investment banking institution in China. Its key investment areas include high-technology, high-value-added, and high-growth sectors such as biopharmaceuticals, new materials, semiconductors, and high-end equipment manufacturing.
Pingshan District Industrial Capital Investment Co., Ltd. is a wholly state-owned enterprise established by the People's Government of Pingshan District, specializing in financial capital management. By leveraging equity operations, fund investments, incubation and acceleration, and value management, the company has built a dual-drive model of “industrial investment + capital operation,” committed to providing comprehensive, multi-faceted services and support for the industrial development of Pingshan District.