Zhenxiang Pharmaceuticals Secures RMB 200 Million Series A+ Financing and Files IPO Prospectus

Nanjing Zhengxiang Pharmaceutical Co., Ltd. Announces Completion of RMB 200 Million Series A+ FinancingRecently, Nanjing Zhengxiang Pharmaceutical Co., Ltd. announced the completion of its RMB 200 million Series A+ financing round. The round was led by SDIC Merchants Investment Management, with participation from Matrix Partners China and LYZZ Capital. Following this round, Zhengxiang Pharmaceutical’s cumulative total financing has exceeded RMB 330 million.

The funds raised in this round will be used to accelerate the global multicenter clinical trials of the Company’s next-generation anti-tumor drug, ZX-101A, while completing the clinical trial applications for the novel anti-influenza drug ZX-7101A and the highly selective PI3Kγ inhibitor ZX-4081, followed by the initiation of clinical trials to ensure the core competitiveness of the Company’s pipeline.

Leveraging its proven expertise in small-molecule novel drug development, the team at Nanjing Zhengxiang Pharmaceutical Co., Ltd. carefully selects disease-relevant targets, rationally designs clinical candidate drugs, and efficiently advances product development while maintaining cost control. The company’s R&D pipeline primarily focuses on malignant tumors, infectious diseases, and autoimmune disorders, featuring best-in-class or first-in-class drug molecules with global independent intellectual property rights. Nanjing Zhengxiang Pharmaceutical plans to submit two Investigational New Drug (IND) applications in China and one to the U.S. FDA in the third quarter of this year, striving to achieve early market approval and provide superior therapeutic options for patients with urgent clinical needs.

Dr. Yang Jinfu, Founder and Chairman of Zhengxiang PharmaceuticalOn behalf of the company, we extend our heartfelt gratitude for the high level of trust and strong support demonstrated by new-round investors such as SDIC Capital. Dr. Yang stated, “This round of financing marks another milestone in the company’s development history. Nanjing Zhengxiang Pharmaceutical Co., Ltd. will accelerate the advancement of its R&D projects and pipeline construction, further strengthen its core competencies in the fields of malignant tumors, autoimmune diseases, and infections, and continuously enrich its R&D pipeline. We strive to establish Nanjing Zhengxiang Pharmaceutical as a globalized pharmaceutical enterprise centered at its Nanjing headquarters.”

Dr. Yi Hua, Executive Director of SDIC Investment Promotionstated: “Zhengxiang Pharmaceutical boasts a senior R&D team with an international innovative vision and has established a leading domestic innovation technology platform for small-molecule compound design and biological evaluation. Since its establishment over two years ago, the company has consistently maintained high R&D efficiency, with encouraging progress in project advancement. As the lead investor in this round, SDIC Capital Management highly recognizes the professional capabilities and innovative spirit demonstrated by the Zhengxiang Pharmaceutical team. We look forward to the company’s steady and continuous progress in its R&D projects, aiming for early product commercialization to benefit a broad patient population.”

Dr. Zhiyun Yu, Partner at Matrix Partners ChinaIt stated: “Nanjing Zhengxiang Pharmaceutical Co., Ltd. focuses on the development of innovative small-molecule drugs in the fields of infectious diseases and oncology, and has made forward-looking strategic deployments across a series of cutting-edge core targets. Supported by core technologies and specialized capital, Nanjing Zhengxiang Pharmaceutical is poised to become a benchmark enterprise in this field.”

Cheng Xiakai, Managing Director of LYZZ Capital“LYZZ Capital pays close attention to the unmet medical needs and huge market potential in China. As a young, cutting-edge innovative pharmaceutical company, Nanjing Zhengxiang Pharmaceutical Co., Ltd. has a rich product portfolio in the fields of malignant tumors and infections, all of which have the potential to be best-in-class or first-in-class, which is very much in line with the company's investment strategy. Moreover, the technical capabilities and execution efficiency of Nanjing Zhengxiang Pharmaceutical’s team are equally impressive. We will firmly support the development of Nanjing Zhengxiang Pharmaceutical in the long term, and look forward to witnessing the launch of the company's innovative drugs soon, bringing hope to more clinical patients.”

Zhengxiang Pharmaceutical is a clinical-stage small-molecule innovative drug company founded by a team of returning technical experts with extensive R&D and management experience at internationally renowned pharmaceutical companies. In 2018, the company received angel investment from Enran Venture Capital. Headquartered in the Nanjing Jiangbei New Area, a national-level new area, Zhengxiang Pharmaceutical has established wholly-owned subsidiaries in Hangzhou, China, and San Francisco, USA, to implement its global strategy. Adhering to its corporate vision of “Serving Patients with the Best Science,” the company currently focuses on developing Best-in-Class and First-in-Class novel drugs in the fields of cancer, viral infections, and autoimmune diseases, providing differentiated solutions for unmet clinical needs, and striving to become a leading and influential global biopharmaceutical enterprise.

SDIC Merchants focuses on investment in the advanced manufacturing industry, emphasizing technological innovation and the value of outstanding entrepreneurs and teams. It prioritizes investments in sectors such as intelligent manufacturing, new energy smart vehicles, life sciences, and information and communications technology (ICT), committing to promote the green, digital, and service-oriented development of the manufacturing sector. The team manages a total asset scale exceeding RMB 100 billion, with investors including financial institutions, the National Social Security Fund, and both state-owned and private capital.

Matrix Partners China is one of the most active early-stage venture capital firms in the market. Over the past decade since its establishment, it has remained deeply rooted in the local ecosystem, steadfastly supporting Chinese entrepreneurs. Its primary investment focus spans healthcare, new technology and advanced manufacturing, mass consumer sectors, and B2B/trading platforms, with a portfolio comprising over 700 companies. Adhering to the belief that investors and entrepreneurs are partners, Matrix Partners China seeks win-win collaboration with founders who share its values and mutual trust. Positioning itself as a “proactive investor who understands entrepreneurs best—offering help without causing disruption,” the firm has built a post-investment service team centered on addressing the pain points of its portfolio companies, striving to create value through active post-investment management and value-added services.

LYZZ Capital is a globally leading venture capital and private equity firm dedicated to the healthcare industry. Its current funds under management include both USD and RMB investment entities, with an aggregate size exceeding RMB 3 billion equivalent. The founding team of LYZZ Capital has worked together for over a decade, bringing complementary expertise and a strong emphasis on teamwork. They possess extensive experience in pharmaceutical investments both domestically and internationally, with a professional investment track record spanning more than 15 years in China alone. LYZZ Capital invests globally in ventures founded by outstanding entrepreneurs, as well as in high-quality assets and technologies, with a particular focus on addressing unmet medical needs and tapping into the significant market potential in China.