Reliable Medical Secures Tens of Millions in Series A+ Financing to Advance Innovative Mass Spectrometry Solutions for Clinical Diagnostics

VCBeat has learned that Reliable Med (Hangzhou) Medical Technology Co., Ltd. (“Reliable Med”) recently completed an A+ round of financing amounting to tens of millions of yuan. The round was led by Sanzheng Health Investment, with existing investors Legend Capital, Huagai Capital, and Chende Capital increasing their investments. The funds raised in this round will be primarily used for the research and development of Reliable Med’s liquid chromatography-tandem mass spectrometry product pipeline, as well as for upgrading existing products and expanding production capacity.

As a high-end analytical technique, mass spectrometry combines the advantages of high sensitivity and high specificity, while also featuring rapid analysis and multi-analyte detection capabilities. Consequently, it holds broad application prospects in the fields of life sciences and clinical diagnostics. Compared to the half-century development history abroad, China’s mass spectrometry technology started later, with its application in clinical laboratory testing being particularly lagging. In recent years, the growing maturity of market awareness and the surging demand for mass spectrometry-based testing in the clinical sector have driven continuous investment in mass spectrometry instrumentation and supporting reagent kits in China. This has significantly accelerated the localization of clinical mass spectrometry, reversing the long-standing unfavorable situation where core equipment was heavily dependent on foreign suppliers.

On April 23, 2021, Reliable Med’s Inspector SQ60, the first domestically developed trace element analyzer based on mass spectrometry principles (utilizing advanced international inductively coupled plasma mass spectrometry technology), obtained the Medical Device Registration Certificate of the People's Republic of China issued by the Zhejiang Provincial Medical Products Administration, ushering in a new chapter for the application of clinical mass spectrometry in trace element testing in China!

Figure: Inspector SQ60 Trace Element Analyzer

Figure: Registration Certificate (Zhe Xie Zhu Zhun 20212220150)

To enhance the management standards, biosafety, and result reliability of clinical laboratories, while conserving human resources and reducing medical costs, the development of high-efficiency, high-quality clinical mass spectrometry workflows is urgently needed. According to Zheng Yi, founder of Reliable Med, the next-generation trace element analysis platform—China’s first modular clinical mass spectrometry workflow system—has already entered the R&D phase and is expected to be launched next year. As an IVD company leading the rapid development of the clinical mass spectrometry industry, Reliable Med has always adhered to the simultaneous advancement of in vitro diagnostic reagents and instruments. Currently, the company’s existing in vitro diagnostic reagents cover two major application areas: maternal and child health (including trace elements, vitamins, free fatty acids, bile acids, steroid hormones, etc.) and chronic disease management (including therapeutic drug monitoring, catecholamines and their metabolites, primary aldosteronism indicators, tumor marker screening, etc.). Nearly 30 reagent kits have been submitted for registration or filing, driving clinical mass spectrometry testing toward greater efficiency, precision, and convenience.

Figure: Upgrade Path from Version 1.0 to Version 2.0 of the Trace Element Analysis Platform

Reliable Med has established a strong foothold in the domestic market by actively expanding its sales channels, with operations now covering more than 20 provinces, municipalities, and autonomous regions across China. The company has provided integrated clinical mass spectrometry platform solutions to dozens of top-tier Grade III Class A hospitals in China. Committed to deepening its engagement in the life and health industry, Reliable Med will continue to support clinical laboratory medicine. Guided by customer needs and upheld by a spirit of pragmatism and perseverance, the company is dedicated to popularizing advanced mass spectrometry testing technologies and making unremitting efforts to safeguard human health.

Commenting on the success of this funding round, the company expressed its gratitude to the investors for their trust and to all sectors of society who have consistently followed and supported Reliable Med. The company will leverage this momentum to continue dedicating itself fully to the R&D and industrialization of its clinical mass spectrometry product pipeline, delivering high-quality products and services to clinical end-users and making laboratory testing more precise, reliable, and efficient.

Sheng Li, Partner at Sanzheng Health Investment“Applications of mass spectrometry in China’s clinical sector are still in their infancy, holding immense potential for future development. The domestic high-end mass spectrometer market has long been monopolized by international industry giants; therefore, achieving Chinese ‘intelligent manufacturing’ of high-end mass spectrometers is of great significance to clinical applications. The Reliable Med team is resilient, enterprising, and possesses strong execution capabilities, having achieved multiple milestones in product R&D and commercialization within a relatively short period. We are delighted to participate in this financing round as the lead investor, supporting Reliable Med in its continuous innovation in the field of clinical mass spectrometry and pioneering more ‘firsts in China.’”

Zhou Quan, Managing Director at Legend Capitalstated: “Mass spectrometry is an important niche segment within clinical diagnostics, yet the market lacks IVD products based on mass spectrometry that are well-suited for this application. Since our initial collaboration with Reliable Med during its Series A financing round, we have witnessed progress in R&D and commercialization that has exceeded expectations. We are honored to increase our investment in this round and look forward to the company achieving further breakthroughs and growing into a leading mass spectrometry-based IVD platform enterprise.”

Chen Bo, Vice President of Huagai Capital’s Healthcare Fund“Reliable Med is a company in which we have strong, long-term confidence; Huagai Capital has chosen to further increase its stake. The development of the clinical mass spectrometry industry in China depends on the rapid advancement of upstream instrumentation, which requires both robust original mass spectrometry technologies and the capability for customized development tailored to the specific needs of the clinical sector—a highly complex combination of competencies. Reliable Med is one of the few teams in China possessing these two core capabilities, and as an industry leader, it is driving the overall progress of clinical mass spectrometry.”

Chen Ji, Investment Director at Chende Capitalstated: “As seasoned investors, we are delighted to witness the company’s significant progress in product development, regulatory registration and certification, and team building, which has also attracted more professional investors to participate. Chende Capital is optimistic that Reliable Med will become a benchmark enterprise in the field of clinical mass spectrometry and will continue to support the company’s development as always.”

San Zheng Health Investment is a private equity fund focused on the healthcare industry. With a global perspective, it deeply cultivates and invests in innovative technologies within the medical field, promoting their clinical translation and industrialization to save more lives while improving patients' quality of life. Leveraging extensive resources in clinical practice, industry, and policy, San Zheng Health Investment collaborates with partners to build great health technology enterprises.

Legend Capital is an independent professional investment firm under Legend Holdings. Established in April 2001, it was renamed from Legend Investment to Legend Capital in 2012. Its core business focuses on venture capital for start-ups and growth capital for expansion-stage companies, with total assets under management in USD and RMB funds exceeding RMB 50 billion. The firm primarily targets innovation and growth opportunities in China. As of 2020, Legend Capital had invested in more than 500 portfolio companies, among which nearly 80 have successfully listed or been quoted on domestic or overseas stock exchanges, and over 60 have exited through mergers and acquisitions.

Huagai Capital, established in 2012, is a private equity investment firm co-founded by professionals from renowned domestic and international investment institutions. With the vision of “becoming the most trusted capital partner for entrepreneurs and investors,” the company focuses on three core sectors: healthcare, TMT (Technology, Media, and Telecom), and digital innovation, committed to driving small and medium-sized enterprises to become industry leaders. Currently, the firm manages approximately RMB 20 billion in assets and has successfully guided 15 portfolio companies to go public.

Chende Capital is an investment firm focused on the life sciences and medical technology sectors. It manages multiple USD and RMB funds, with total assets under management exceeding RMB 5 billion. Chende Capital is managed and operated by a professional team with extensive experience in the healthcare industry. To date, it has completed investments in over 60 projects and achieved exits from multiple portfolio companies.