Xinwen Biotech Secures Tens of Millions in Angel Funding to Advance Innovative Transdermal Drug Delivery Platforms and Product Commercialization

Recently, Jiaxing Xinwen Biotechnology Co., Ltd. (hereinafter referred to as “Xinwen Bio”) completed a tens-of-millions-yuan angel financing round, jointly invested by Enshe United Family Office (hereinafter referred to as “Enshe Family Office”) and the listed company Yongguan New Materials (Stock Code: 603681). The funds from this round will be used for the industrialization of transdermal formulation products in the medical aesthetics and general health sector, as well as for the clinical research and development of innovative transdermal new drugs in fields such as pain management and neurology.

Xinwen Biopharma, with modern transdermal technology at its core, is dedicated to the R&D, manufacturing, sales, and collaborative development of novel transdermal pharmaceuticals and health products that offer innovative and clinical advantages, focusing on the fields of pain management, neuroscience, and medical aesthetics within the broader health and wellness industry.

Dr. Zhang Xin, the founder, previously served as Technical Director at ALZA Corporation, a pioneer in modern transdermal drug delivery technologies, and as Global Director of Johnson & Johnson’s Chemical Division. All founding members possess over 20 years of R&D and management experience in the transdermal drug delivery industry. The company’s technical and management teams have established mature transdermal drug delivery technology capabilities and have successfully achieved industrialization of multiple innovative transdermal formulations both domestically and internationally.

Transdermal drug delivery refers to the process by which drugs are absorbed through the skin into the systemic circulation, achieving effective plasma concentrations for the clinically approved treatment or prevention of diseases. Compared with oral and injectable administration, transdermal drug delivery offers the following advantages:

1) Avoid the first-pass effect, reduce gastrointestinal side effects, and improve bioavailability;

2) The dosage is stable and the duration of action is longer;

3) For special populations such as children, the elderly, and pregnant women, convenient drug administration methods can enhance patient adherence.

According to projections by an Irish market research firm, the global transdermal drug delivery market is expected to reach USD 7.358 billion (approximately RMB 49.5 billion) by the end of 2024. In 1979, the FDA approved the scopolamine transdermal patch (Transderm Scop), developed by ALZA, marking the beginning of the modern era of transdermal drug delivery systems (TDDS). Over the subsequent 40 years, more than 100 transdermal patch products have been launched globally, with 37 transdermal drug formulations receiving regulatory approval.

Other major players in the global transdermal drug delivery system industry include Novartis AG, Johnson & Johnson (ALZA), Mylan Pharmaceuticals, 4P Therapeutics, Transdermal Corporation, and Echo Therapeutics.

The market size of transdermal drug delivery in China is nearly RMB 10 billion, but it is still dominated by traditional patches, cataplasm, and gel patches, which remain local drug delivery technologies, with products concentrated in the fields of pain management and orthopedics. As centralized drug procurement continues to advance and the difficulty of new drug development increases, transdermal dosage forms for systemic drug delivery will become one of the main directions for pharmaceutical companies' new product research and development and sales.

The core technical team of Xinwen Biologics hails from ALZA, a leading U.S. company in transdermal drug delivery, with each member boasting over two decades of R&D and management experience. They have spearheaded the development and successful commercialization of multiple transdermal drug products.

Xinwen Biologics possesses multiple core technologies for transdermal drug delivery, including a proprietary high-drug-loading and high-permeability transdermal technology platform, an in-house artificial stratum corneum screening model, and a transdermal formulation technology platform. Leveraging these technological platforms, Xinwen Biologics has established a robust pipeline of transdermal drug delivery candidates, the majority of which are global first-in-class innovations.

Regarding Xinwen’s future plans, Dr. Zhang Xin stated“Xinwen Biotech is committed to becoming a world-leading enterprise in transdermal drug delivery platform technology, providing patients, physicians, and consumers with more effective, convenient, and safe pharmaceuticals and health products. Through collaboration with institutional investors, Xinwen Biotech will accelerate the clinical development of its drug pipeline, strengthen its forward-looking layout of the transdermal drug delivery technology platform, and expedite the industrialization of innovative medical aesthetics and general health products based on advanced transdermal technologies.”

Regarding industrial synergy, Lv Xinmin, Chairman of Yongguan New Materials, stated, we are highly optimistic about Xinwen Bio’s innovations in drug delivery technologies and the synergistic effects between the two parties across the upstream and downstream segments of the industry chain. Yongguan New Materials will continue to expand its presence in the healthcare sector by increasing R&D and production investments, thereby providing cost-effective substrate and adhesive solutions for a wide range of medical products.

Li Chenxi, a partner at Enshe Family Office and co-investor, commented thatWe are highly optimistic about the application of transdermal drug delivery in neurology, pain management, pediatric medication, and medical aesthetics. As a Chinese enterprise with mature industrialization technologies and extensive experience in transdermal drug delivery, Xinwen Bio will continuously develop transdermal formulations with clinical value and international competitive advantages, striving to become a leader in this field.

Enshe Family Office was established in 2019 as one of the first family offices in China specializing in life and health. Since its inception, Enshe Family Office has been committed to providing Chinese private enterprise groups and families with services in family health management, industrial investment, and life sciences technology. The firm operates dedicated investment teams and a physician group to comprehensively empower entrepreneurial families and founders.

Shanghai Yongguan Zhongcheng New Material Technology (Group) Co., Ltd. was founded in 2002. Specializing in the research and development, production, and sales of various adhesive products, it is a high-tech enterprise with a complete industrial chain, diversified product portfolio, and globalized market presence. In March 2019, Yongguan New Materials was successfully listed on the Shanghai Main Board (Stock Code: 603681). Currently, Yongguan New Materials has established a Medical Adhesives Division, dedicated to providing cost-effective substrate and adhesive solutions for various medical products.