MICOT Completes RMB 360 Million Series B Financing to Accelerate Development of Bifunctional Peptide Therapeutics

On May 14, 2021, Shaanxi Micot Technology Co., Ltd. (hereinafter referred to as “Micot”) officially announced the completion of its RMB 360 million Series B financing round.The lead investor in this round was Newer Capital, an emerging domestic investment firm. Co-investors included Suzhou Rongsheng Xianxing Venture Capital Partnership (a renowned industrial and financial investment institution), Ningbo Meishan Bonded Port Area Fengchuan Hongbo Investment Management Partnership (Limited Partnership), and Jiaxing Shanjin Equity Investment Partnership (Limited Partnership). Existing shareholders, including Yuezhuo Limited (Northern Light Venture Capital), Tianjin Huaxin Pharmaceutical Venture Capital Partnership (Limited Partnership) (Tasly Capital Huaxin Fund), and Xi’an Jingcheng Daxing Enterprise Management Partnership (Limited Partnership), continued to increase their investments.

The proceeds from this round of financing will be used to advance clinical trials for Micot’s series of bifunctional peptide drugs under simultaneous China-U.S. regulatory filings, further enrich its R&D pipeline, accelerate the construction of its industrialization base in Suzhou, and solidify its first-mover advantage in the field of bifunctional peptide drug development. To accelerate the global development of its products in the pipeline, Micot also plans to initiate a Pre-IPO financing round by the end of the year.

Regarding the success of this round of financing and the company’s future development,Founder Dr. Wang BingHe stated, “After more than a decade of dedicated accumulation, Micot has established its own multifunctional peptide design and industrialization platform, as well as a peptide drug formulation platform. Leveraging our proprietary platform technologies and deep understanding of diseases, we have developed over twenty product lines in the fields of cardiovascular and cerebrovascular health, digestive and metabolic disorders, and anti-inflammatory analgesia. Currently, several core products have advanced to clinical stages in the United States. We extend our sincere gratitude to new investors—including Shanghai Newell, Suzhou Rongsheng Xianxing, Fengchuan Hongbo, and Jiaxing Shanjing Capital—for their recognition of the company. We also thank our existing investors—Northern Light Venture Capital, Tasly Capital, and Xi’an Jingcheng Daxing—for their continued strong support of our development. The team at Micot remains committed to fulfilling our mission with integrity and dedication to pharmaceutical excellence. We will continue to enrich our product pipeline, accelerate the development of candidates under investigation, and strive for early market launch, thereby providing patients worldwide with more effective therapeutic options and delivering maximum value returns to all shareholders.”

Lead Investor in This RoundLin Xianghong, Founding Partner of Newland Capital“The Chinese pharmaceutical and healthcare industry is poised to embrace a historic opportunity for comprehensive innovation over the next decade. Micot boasts a rich product pipeline, emphasizing product differentiation and foresight in addressing unmet clinical needs, thereby maintaining strong competitiveness in both the Chinese and global markets. Particularly, through the relentless efforts of Dr. Wang Bing and his team, Micot has established an independent new drug R&D system and possesses an industry-leading bispecific and multispecific peptide drug technology platform. Currently, multiple innovative peptide products have entered clinical stages in the United States. As a newly established fund management platform integrating industry and finance, NewLi Capital leverages investment and industrial operational expertise from top-tier investment institutions and industry leaders. We are highly optimistic about Micot’s future and look forward to expanding our collaboration. We are committed to supporting the company in further establishing its domestic foundation while expanding internationally, driving continuous breakthroughs in its product pipeline and clinical R&D, and contributing to the advancement of new technologies in the medical field.”

Dr. Miao Lü, Managing Partner of Suzhou New District Venture Capital Rongsheng“Micot is a global innovator in peptide drug R&D, dedicated to the development of new molecular entities featuring bifunctional and multifunctional specific peptides. Several of its international Class I new drugs have entered Phase II clinical trials in both China and the United States, positioning Micot at the forefront of the global innovative peptide therapeutics landscape. We hold Micot’s team in high regard and aim to leverage the strengths of Suzhou High-Tech Zone’s peptide industry chain to jointly build an integrated innovation, R&D, manufacturing, and service ecosystem for peptides, thereby fostering a robust Chinese peptide drug ecosystem.”

Mr. Gu Ming, Partner of Fengchuan Hongbo Investment Management Partnership (Limited Partnership)It stated: “Fengchuan Capital continuously focuses on and invests in outstanding entrepreneurial teams that possess platform-based biopharmaceutical innovation technologies, demonstrate sustained original innovation capabilities, and have clear pathways for clinical translation and commercialization. Micot’s proprietary and unique new molecular entity (NME) drug R&D technology platform, based on bifunctional and multifunctional specific peptides, holds significant market and commercialization potential in addressing unmet clinical needs in the fields of cardiovascular, cerebrovascular, and metabolic diseases. Dr. Wang Bing and his management team represent a rare breed of entrepreneurs in the industry, possessing comprehensive capabilities spanning scientific research, industrial translation, and commercialization. They exhibit clear strategies and efficient execution from R&D pipeline layout to clinical translation and industrial implementation. We believe that Micot has the opportunity to become a sustained leader in the research and development of innovative biologics for cardiovascular, cerebrovascular, and metabolic diseases, both domestically and internationally.”

Lyu Yuanyuan, Managing Partner at Shanjing Capital“Micot, as a global pharmaceutical company, boasts an experienced team led by Dr. Wang Bing. Through years of accumulation, the company has established a robust pipeline of 17 new drug candidates, covering five major therapeutic areas: ischemic heart disease, stroke, antithrombotic therapy, nervous system injury and degenerative diseases, and diabetes. We hope that our products will advance through clinical development and reach the market as planned, bringing greater benefits to more patients.”

Mr. Deng Feng, Founder of Northern Light Venture Capital, the Additional Investor in This RoundDeng Feng, founder of Northern Light Venture Capital, stated, “Unlike large-molecule protein antibodies and small-molecule chemical drugs, the development of innovative peptide-based therapeutics is highly challenging. Micot is one of the few domestic innovators focused on the development of such peptide-based therapies, with its founding team possessing extensive experience in this field. Over the two years since Northern Light’s investment, the company has achieved rapid growth, advancing multiple product pipelines into clinical stages. Northern Light continues to support the development of Micot’s highly promising product portfolio. We believe this collaboration will accelerate the company’s efforts to bring these therapies to market, address unmet clinical needs, and benefit more patients.”

Investors Participating in This Round of Additional InvestmentMr. Tan Chongli, Partner of Post-Investment Management at Tasly CapitalIt stated: “Micot is a pioneer and practitioner in the research and development of bifunctional and multifunctional specific peptide drugs, and its bispecific peptide platform is one of the best platforms for peptide drug R&D. Since Tasly Capital’s investment in 2019, the company’s product development has progressed beyond expectations, with favorable clinical trial data. Innovative drugs are a key focus of Tasly Capital’s investments, with platform-type R&D companies receiving particular attention. Tasly Capital has continued to increase its stake in Micot during this financing round. We are highly confident that the company will embark on a new development milestone, initiate project design and construction at an international standard, attract top-tier talent, and accelerate the industrialization of its projects.”

Shaanxi Micot Technology Co., Ltd. (hereinafter referred to as “Micot”) was established in Xi’an in January 2007. In August 2017, it established its subsidiary, Xi’an Aolitai Pharmaceutical Technology Co., Ltd. (hereinafter referred to as “Aolitai”), with a registered capital of RMB 9.6 million. In August 2020, it established its wholly-owned subsidiary, Micot (Suzhou) Technology Co., Ltd., with a registered capital of RMB 50 million.

Micot is a Sino-foreign joint venture innovative drug R&D company with a global outlook. It possesses an industry-leading bispecific peptide drug technology platform and a national-level peptide drug formulation platform. The company has established a product pipeline comprising 20 Class 1.1 new drug candidates, covering major disease areas such as cardiovascular and cerebrovascular diseases, metabolic disorders, anti-inflammatory and analgesic conditions, and nervous system injuries. Currently: three candidates have been selected for the National “Major New Drug Creation” Special Project; three have received approval from the NMPA to conduct clinical studies in China; three have obtained FDA approval for clinical studies in the United States; and three are actively advancing their IND applications in the United States. Micot ranks among the global leaders in the number and diversity of investigational new peptide drugs in its pipeline.

Currently, Micot’s research base under construction in Xi’an covers a total area of over 3,000 square meters. It features fully equipped modern laboratories for new drug research, enabling the company to independently conduct preclinical studies, including new drug design and synthesis, pharmaceutical research, and pharmacological and efficacy evaluations. Meanwhile, the R&D and industrialization center in Suzhou is actively under development. Upon completion, it will not only support preclinical development of the company’s early-stage candidates but also provide GMP-compliant manufacturing capacity to meet commercial production needs. To attract global talent and create greater value, Micot has established branches in Beijing, Suzhou, and Boston, USA, among other locations, to comprehensively advance the global development and regulatory filing of its innovative product pipeline.

Micot is committed to becoming a global frontier leader in the development of dual-functional and multi-functional specific peptide drugs. Focusing on the research and development of novel therapeutics for cardiovascular and cerebrovascular diseases, metabolic disorders, and inflammation- and pain-related conditions, Micot aims to address unmet clinical needs and safeguard human health through innovative technologies.

Newell Capital is an investment and fund management platform that leverages top-tier domestic and international industrial resources alongside long-term capital. It features an interconnected triad of capabilities—fund of funds, direct investment, and private equity secondary investments—and operates under a dual-drive model utilizing both onshore RMB and offshore USD. The company specializes in healthcare, new infrastructure and advanced manufacturing, industrial internet and enterprise services, consumer-facing internet, and innovative consumption sectors.

Suzhou New District Venture Capital Group Co., Ltd. serves as the equity investment platform and the operational management institution for the government guidance fund of Suzhou Jinhe Sheng Holdings Co., Ltd., a wholly state-owned financial holding group in Suzhou New District. The company has established a comprehensive fund investment system covering the entire corporate lifecycle, including angel investment, venture capital (VC), private equity (PE), industrial investment, and mergers and acquisitions with private placements. To date, Suzhou New District Venture Capital has participated in 50 funds with a total scale of RMB 13.032 billion. These funds have cumulatively invested in over 500 projects, facilitated the listing of more than 40 high-tech enterprises on the Shanghai and Shenzhen stock exchanges, and supported numerous companies in applying for the first batch of listings on the STAR Market. Rongsheng Management Company, the market-oriented direct investment management team under Suzhou New District Venture Capital, specializes in investments within the big health sector.

Fengchuan Capital, established in 2015, is a private equity investment fund focused on the entire medical and pharmaceutical industry chain, with particular emphasis on frontier biopharmaceuticals, the commercialization of original innovations, and cross-border pharmaceutical industry integration. It is committed to identifying life science and healthcare startups that can promote human health. Fengchuan Capital centers its investments on outstanding entrepreneurial teams in biopharmaceuticals, high-end medical devices, specialized medical services, and medical aesthetics and health consumption, specifically those possessing sustained original innovation capabilities, sustainable growth potential, and clear commercialization prospects. By providing in-depth post-investment services in clinical translation and industrial integration, the firm supports the long-term growth of its portfolio companies. It has invested in more than 20 outstanding enterprises, including Conmeda, InnoCare Pharma (Yifang Bio), Lupeng Pharmaceuticals, Saimuoluo, Weiyuan Likang, Huanuotai, Weijiexin, Cellestia, Vedanta, Angiex, Tongxin Medical, Bloomage Biotech, Meizhong Jiahe, Fukang Medical, and HiRO.

Shanjin Capital, ranked among the “Top 100 Best Private Equity Investment Institutions in China for 2020” by China Venture, currently manages assets exceeding RMB 1 billion. Guided by the investment philosophy of “Technology for Good, Capital for Good,” Shanjin aims to “heavily invest in China’s core assets and help investors share in the significant dividends from China’s new round of economic transformation and upgrading.” The firm focuses on dual investment themes: “Hard Technology” and “Healthcare.”In the “Hard Technology” sector, Shanjin targets opportunities in 5G, artificial intelligence, semiconductors, and their respective sub-sectors. Its portfolio includes high-quality projects such as CloudWalk Technology, United Winners Laser (688518.SH), Zhonglian Nengchuang, Jiangsu Nenghua Microelectronics, Suzhou Hantianxia Electronics, Bailian Intelligence, Shanghai Tianrang Intelligence, and Qingdao Huituo Intelligence.In the “Healthcare” sector, the firm concentrates on biopharmaceuticals, medical devices, and molecular diagnostics. It has made strategic investments in outstanding enterprises including Zelgen Biopharmaceuticals (688266.SH), Tinavi Medical Technologies (688277.SH), Yidao Biology, GenFleet Therapeutics, and Shaanxi Micot Pharmaceutical Technology Co., Ltd.

Northern Light Venture Capital, founded by Mr. Deng Feng in 2005, is a venture capital firm dedicated to “empowering world-class entrepreneurs and cultivating world-class Chinese enterprises.” It currently manages five U.S. dollar funds and five RMB funds, with a long-term focus on investing in early-stage, technology-driven innovative companies. To date, Northern Light Venture Capital has invested in more than 250 companies across the TMT, advanced technology, and healthcare sectors, including nearly 60 companies in the healthcare sector, such as BGI Genomics, Burning Rock Biotech, Guoke Hengtai, Taimei Medical Technology, Eastern Speech, Zeltis Pharma, and Convoy Therapeutics.

Tasly Capital focuses on investing in mature enterprises within the broader health ecosystem and high-growth companies in emerging niche sectors. Established in 2007, Tasly Capital is an industrial investment platform that has been gradually incubated, developed, and expanded under Tasly Holding Group’s strategic positioning of “industry as the foundation, finance as the tool, and industry-finance interaction.” Its business scope covers equity investment, industrial M&A, asset management, international investment, and commercial factoring. The RMB funds of Tasly Capital are sponsored by Tasly Holding Group, with major investors including multiple government guidance funds, banks, insurance companies, and institutional investors; its USD funds are comprised of investments from renowned international institutional investors.