Jiabao Yaoyin Completes RMB 100 Million Pre-A Financing to Accelerate Clinical Development of Multiple Class I Innovative Drugs

VCBeat has learned that on August 8, 2021, Chengdu Jiabao Yaoyin Pharmaceutical Technology Co., Ltd. (hereinafter referred to as “Jiabao Yaoyin”) announced the completion of its Pre-A financing round, raising hundreds of millions of yuan. Jiabao Yaoyin is a company focused on the research and development of innovative small-molecule drugs, with a pipeline covering infectious diseases, oncology, autoimmune disorders, and other therapeutic areas. Led by Academician Wei Yuquan, the company was established in Chengdu, Sichuan Province, in 2019. It is committed to developing Class I innovative drugs urgently needed for clinical use.This round of financing was led by Dingxiang Capital, with follow-on investment from Probe Capital. The funds will be used to advance the clinical development of pipeline drugs, strengthen the R&D team, and expand the product pipeline globally.

As this round of financing was completed, Jiabao Yaoyin also announced the establishment of a wholly-owned subsidiary in Zhangjiang, Shanghai, which will be dedicated to clinical research on drugs for the treatment of advanced solid tumors.

Academician Wei Yuquan, founder of Jiabao Yaoyin, stated: “While innovative drugs in China are flourishing, the phenomenon of clustered R&D efforts is also prominent. In the future, new drug development will undoubtedly be driven by clinical needs, making clinical development capabilities a key competitive focus for companies. Enterprises with advantageous pipelines and robust technological strength will increasingly gain favor among patients and the market.”

JDB0131, one of Jiabao Yaoyin’s core products, has been included in the “Major New Drug Creation” program under China’s 13th Five-Year Plan and is currently undergoing Phase I clinical trials. It stands as one of the safest investigational drugs for drug-resistant tuberculosis (DR-TB) in clinical development. Poor safety profiles are a common challenge among anti-tuberculosis agents, while the high cost of existing DR-TB medications severely limits their clinical accessibility. JDB0131 has demonstrated exceptional safety in clinical trials, with no drug-related adverse events reported among enrolled participants. The drug is expected to enter pivotal clinical trials in 2022 and apply for Breakthrough Therapy designation. It has the potential to become the first independently developed and marketed domestic drug for DR-TB in China, significantly alleviating current treatment challenges by providing a safe, reliable, and affordable homegrown therapeutic option for patients.

Jiabaoyaoyin’s core R&D pipeline, in addition to JDB0131, a novel drug for drug-resistant tuberculosis, includes JDB153, a first-in-class global oncology immunotherapy plus anti-angiogenic agent designed to rescue patients who have failed PD-1 therapy; JDB175, a highly selective BTK inhibitor with excellent blood-brain barrier penetration; and JDB383, the world’s only CSF1R inhibitor validated in PDX models. All these candidates feature the advantages of addressing urgent clinical needs and facing limited competition.

JDB153 is a dual-target inhibitor of MNK and VEGFR, forWorld’s First Tumor Immunotherapy + Anti-Tumor Angiogenesis Drug, which can enhance the efficacy of PD-1 monoclonal antibodies through multiple pathways. The clinical combination of MNK inhibitors with PD-1 has been validated toRescuing Patients with PD-1 Inhibitor Failure, with significant efficacy. Currently, only one company worldwide has entered the pivotal clinical trial phase for this investigational product, indicating broad market prospects.

JDB175 is a highly brain-penetrant, highly selective BTK inhibitor., with multiple sclerosis (MS) as the target indication. MS remains incurable, and more than half of patients do not receive effective treatment. The therapeutic efficacy of BTK inhibition in MS has been clinically validated; however, poor blood–brain barrier penetration of existing drugs represents the major bottleneck in treating this disease. Although numerous BTK inhibitors exist, few demonstrate satisfactory brain penetration. Major pharmaceutical companies are striving to achieve breakthroughs in this indication, but no drug has yet been approved for market. In animal studies, JDB175 demonstrated excellent safety and blood–brain barrier penetration, highlighting its best-in-class potential and substantial market opportunity.

JDB383 isThe world's only CSF1R inhibitor validated by PDX models for the treatment of tenosynovial giant cell tumor,No relevant therapeutic drugs have been launched in China yet, but a rapid market launch is expected. Furthermore, studies have shown that JDB383 can modulate the tumor immune microenvironment and holds therapeutic potential for various solid tumors.

On July 2, 2021, the Center for Drug Evaluation (CDE) of the National Medical Products Administration released the Guiding Principles for Clinical Development of Antineoplastic Drugs with a Focus on Clinical Value (Draft for Comment), which attracted significant attention across the pharmaceutical industry and capital markets. The guiding principles repeatedly emphasize that various drug development institutions should define their research topics by focusing on patient needs, with the ultimate core objective being to meet patients’ treatment requirements.

This means that, driven by these regulations, the research and development of innovative drugs—premised on meeting genuine clinical needs—will propel the entire innovative drug market into a virtuous cycle of sustainable development.

Notably, Jiabao Yaoyin’s corporate philosophy aligns closely with the regulation’s emphasis on “taking the provision of better treatment options for patients as the highest goal.” As Director of the Oncology Center at West China Hospital, Academician Wei Yuquan brings extensive clinical experience and a deep understanding of the real-world needs of frontline physicians and patients. Consequently, since its inception, Jiabao Yaoyin has embedded the “clinical-oriented” concept into its core corporate values. By driving drug development from the perspectives of physicians and patients, with the aim of addressing clinical challenges and understanding patients’ genuine needs, the company continues to deepen its expertise across numerous therapeutic areas.

Investors in this round, Dingxiang Capital and Tan Zhen Capital, stated“Jiabao Yaoyin has a novel drug pipeline layout and a clear, differentiated R&D strategy. The company boasts a high-level R&D platform, clinical trial resources, and experience in translating scientific achievements into applications, supported by closely coordinated professional scientific and operational teams. Its clinical operations are highly efficient and agile; within less than two years of establishment, one candidate drug has entered clinical trials, and two are at the Investigational New Drug (IND) stage. Upon completion of this financing round, four Class 1 innovative drugs will be advanced into clinical trials in China. We believe Jiabao Yaoyin can maintain unique advantages in the innovative drug R&D sector over the long term, effectively addressing urgent unmet clinical needs.”

Sichuan Dingxiang Equity Investment Fund Co., Ltd. (hereinafter referred to as “Dingxiang Capital”) is a specialized investment management platform established by Desheng Group, a China Top 500 enterprise, with a registered capital of RMB 500 million. As a fund management company, it was among the first batch of private fund managers in Chengdu to obtain registration and filing with the Asset Management Association of China (AMAC). Positioned as a strategic financial holding platform, it aims to build a capital platform centered on investment and investment management by making proprietary investments, initiating subsidiary funds, and cultivating professional investment management teams. With an open, mutually beneficial, and win-win approach, it fosters and promotes the development of innovative industries through market-oriented operations and management. Its current investment portfolio spans aerospace, defense industry, polymer materials, biopharmaceuticals, pan-entertainment, TMT, and other national strategic emerging industries. To date, it manages or participates in the management of 16 funds, with a total investment scale of approximately RMB 8.2 billion and assets under management exceeding RMB 11 billion.

Probe Capital is an asset incubation and investment/financing platform focused on the healthcare and life sciences sectors. Its founders hail from leading domestic medical venture capital firms, and the firm has facilitated financing transactions totaling billions of RMB, establishing it as a top-tier financial advisory (FA) institution in China’s healthcare industry.