Shankang Medical Completes Nearly RMB 200 Million Series B Financing to Accelerate Growth as a Unicorn in Addiction Treatment
In September 2021, Shenzhen Shankang Medical and Health Industry Co., Ltd. completed a Series B financing round of nearly RMB 200 million.This round of financing was led by Zhuhai Huajin Capital, with participation from Guoke Investment, Zhuhai Kailing, and Xiangjiang Liyuan, among others. Existing shareholders Shenzhen Capital Group and Xiaoxiang Zhiyi continued to increase their investments., fully demonstrating institutional investors’ strong affirmation of Shankang Medical’s innovative capabilities in the field of drug addiction treatment and their robust confidence in the company’s development. Boxiao Ventures and Yiran Capital served as financial advisors to Shankang Medical in this transaction.
Shankang Medical was established in 2017, building on over a decade of prior expertise in controlled-release drug technology. The company masters internationally advanced core technologies for sustained and controlled release, possesses extensive experience in pharmaceutical R&D and clinical studies, and focuses its research pipeline on addiction treatment and psychiatric disorders.
In April 2021, the naltrexone implant independently developed by the company was included in the “Breakthrough Therapy Designation” list by the Center for Drug Evaluation (CDE) of the National Medical Products Administration (NMPA). The naltrexone implant is a long-acting sustained-release formulation that provides continuous drug release for five months following a single administration. This significantly improves patient adherence, markedly reduces relapse rates among patients with opioid dependence after detoxification, and enhances clinical efficacy. The launch of the naltrexone implant will make a substantial contribution to robust future revenue and profit growth. It not only demonstrates Shankang Medical’s innovative achievements in the research and development of high-end formulations but also reaffirms the company’s mission through concrete actions: to ensure that no one struggles with addiction.
Drug addiction has been defined by modern medicine as a stubborn, relapse-prone brain disease characterized by recurrent episodes. According to the World Drug Report 2021 released by the United Nations Office on Drugs and Crime (UNODC), approximately 275 million people worldwide used drugs last year, and more than 36 million suffered from drug use disorders. The global number of drug users is projected to increase by 11% by 2030. In China, the 2019 China Drug Situation Report indicated that there were 2.148 million registered drug users in China by the end of 2019, accounting for 0.16% of the total population. The large patient population and the essential need for treatment have driven the addiction treatment market to grow into a massive industry valued at hundreds of billions of yuan. Against this backdrop, Shenzhen Shankang Medical and Health Industry Co., Ltd. and its team are committed to technological research and development and product manufacturing, deploying a comprehensive portfolio of addiction cessation products. Their aim extends beyond treating patients with drug addiction; they also aspire to provide high-quality and effective treatment solutions for the vast number of individuals suffering from alcohol, internet, and gambling addictions.
This financing will empower Shankang Medical to continue its deep engagement in the field of addiction, solidify the company’s industry-leading position, and facilitate the exploration of innovative business models. By leveraging its multi-controlled release technology platform and derivative technologies, Shankang Medical aims to deliver more disruptive breakthroughs to the industry.
Throughout its journey, Shankang Medical has upheld a spirit of diligent research and continuous technological innovation, pioneering an unprecedented path in China’s addiction treatment sector. This round of financing will enable Shankang Medical to leverage its proprietary core technologies to accelerate product commercialization, enhance the team’s business operational capabilities, expedite its domestic market presence, and expand overseas operations. By demonstrating the responsibility of a major nation and contributing to the building of a community with a shared future for mankind, Shankang Medical aims to showcase the prowess of Chinese technology on the global stage.
Zhuhai Huajin Capital Co., Ltd., formerly known as Lihua Co., Ltd., was established in Zhuhai in 1992 and listed on the Main Board of the Shenzhen Stock Exchange in 1994, with the stock code “000532”. In April 2017, it adopted its current name, abbreviated as “Huajin Capital”. Adhering to the philosophy of value investment in venture capital, the company focuses on strategic investments in the internet, biopharmaceuticals, high-end manufacturing, new energy, energy conservation and environmental protection, and cultural media sectors. With a foothold in China and a global perspective, Huajin Capital is actively building domestic and overseas business platforms. Its domestic platform centers on Beijing, Shanghai, Shenzhen, and Tianjin, while its overseas platform focuses on Hong Kong and Silicon Valley in the United States, forming a business framework anchored in Zhuhai, covering China, and reaching out globally.
China Science & Technology Industry Investment Management Co., Ltd. (hereinafter referred to as “Guoke Investment”) is a professional investment management company controlled by CAS Holdings Limited, with participation from the State-owned Assets Supervision and Administration Commission of the State Council and an employee stock ownership company. Its predecessor was the National Economic Commission and the Chinese Academy of Sciences Foundation for Promoting Economic Development through Science and Technology, established in 1987. In 1993, in accordance with national policies regulating foundations, China Science & Technology Promotion Economic Development Investment Corporation was established. In 2006, it was restructured into a limited liability company and adopted its current name. Over the past 27 years, the Foundation and Guoke Investment have supported more than 300 projects for the industrialization of scientific and technological achievements, among which a number have become industry-leading enterprises, making significant contributions to promoting the transformation of scientific and technological achievements and advancing corporate technological progress.
Hunan Xiangjiang Liyuan Investment Management Co., Ltd., formerly known as Hunan Tianjian Xiangjiang Big Health Industry Investment Management Co., Ltd., was established in 2014 with a registered capital of RMB 12 million. It is an equity investment company jointly funded by Junkang Investment Management Co., Ltd., China Merchants Xiangjiang Investment Management Co., Ltd., and the management team, and serves as a subsidiary of China Merchants Xiangjiang Industrial Investment Management Co., Ltd.
Shenzhen Capital Group Co., Ltd. (hereinafter referred to as “SCG”) was established in 1999 with capital contributed by the Shenzhen Municipal Government, which also guided investments from social capital. With the mission of discovering and empowering great enterprises, SCG is committed to identifying and nurturing innovative value. It has evolved into a comprehensive investment group centered on venture capital, with a registered capital of RMB 10 billion and assets under management totaling approximately RMB 421.3 billion. The Group oversees Hongtu Innovation Fund Management Co., Ltd., China’s first public fund management company affiliated with a venture capital firm. Focusing on its core venture capital business, SCG continuously extends its venture capital industry chain, driving rapid progress in specialized, diversified, and internationalized operations.
Hunan Xiaoxiang Zhiyi Private Equity Fund Management Co., Ltd. was established in 2017 as the equity investment platform under Xiaoxiang Capital Group Co., Ltd. The company has obtained registration and filing qualifications as a private fund manager from the Asset Management Association of China (Registration No.: P1066081). Since its inception, it has issued and managed 13 fund products, with a cumulative scale of RMB 400 million, and its invested projects have expanded from domestic markets to overseas. The company’s development has been widely recognized within the industry, earning titles such as the “2018 Xiangjiang Qilin List Annual Outstanding Contribution Investment Institution” and the “2019 Xiangjiang New Area Major Contribution Award for Sci-Tech Innovation Cooperation.”