Demet Completes Tens of Millions RMB Series A Funding, Advances Clinical Mass Spectrometry and Chromatography Leadership with IPO Filing

VCBeat has learned that on April 19, Hunan Demeter Instruments Co., Ltd. (“Demeter”), a company specializing in the clinical application of mass spectrometry and chromatography, announced the completion of its tens-of-millions-yuan Series A financing round. In this round, Fortune Capital exclusively invested in Demeter’s holding parent company, Changsha Anlaike Instruments Co., Ltd. (“Anlaike”). The funds will be used for R&D in the clinical application of mass spectrometry and chromatography technologies, product manufacturing, team expansion, and market promotion.

With the advancement of China’s economic and technological capabilities, patient visits to medical institutions have increased significantly. The detection of small-molecule substances has gradually become a clinical necessity, creating substantial industrialization opportunities for advanced instruments such as mass spectrometers and chromatographs. In recent years, the domestic mass spectrometry and chromatography sector has become highly competitive, characterized by intense rivalry among numerous players. Currently, Chinese mass spectrometry and chromatography companies primarily operate under two models: one is the “rebranding and registration” model, which involves importing foreign mass spectrometry equipment, rebranding it, and registering it for sale; the other is the third-party testing service model, which establishes a presence in hospitals to secure market share and generates revenue through regional sample collection and analysis. Mr. Wang Feng from Demeter stated:“Neither of these two models has addressed the core pain points hindering the clinical adoption of mass spectrometry and chromatography. With no fundamental improvements in product performance or functionality, they lack core competitiveness and sustainable growth potential, while facing risks of homogeneous competition and hitting policy ceilings.”

Demeter belongs to the rare third model: breaking through the core technical barriers in the clinical application of mass spectrometry and chromatography through independent innovation, thereby transforming the clinical application characteristics of chromatography and mass spectrometry. After 12 years of research and development, the company has mastered control technologies for chromatography and mass spectrometry, successfully developing fully automated two-dimensional liquid chromatography systems and highly stable clinically oriented mass spectrometry systems. These innovations enable comprehensive testing for most therapeutic drug monitoring, vitamins, amino acids, bile acids, and other analytes. The company has established substantial competitiveness in patent portfolio, product manufacturing, technological research, regulatory compliance, and market performance. Currently, its products cover all 32 provinces and municipalities across China, have been adopted by hundreds of Grade A tertiary hospitals, and have achieved cumulative sales exceeding RMB 100 million.

As an investor in this funding round, Huang Muyun, Investment Director at Fortune Capital (Dachen Caizhi), stated that chromatography and mass spectrometry technologies hold significant promise for clinical applications. There is clear demand in areas such as therapeutic drug monitoring (TDM), diagnosis of inherited metabolic disorders, and diagnosis of endocrine diseases, making these technologies platform-level solutions for achieving precision medicine.We have witnessed Demeter’s deep technological expertise and extensive experience in the fields of chromatography and mass spectrometry, which have enabled it to overcome technical bottlenecks and make chromatographic and mass spectrometric detection more convenient and reliable. We are honored to have partnered with its parent company, Analytik Jena, to continuously create value for society.

Mr. Wang stated that mass spectrometry-chromatography systems still fall significantly short of the performance standards and requirements of clinical laboratory equipment such as biochemistry, immunoassay, and chemiluminescence analyzers, and are not well aligned with the technical demands and operational environments of modern laboratory medicine. Matrix effect (ME) represents a critical technical flaw underlying the instability of mass spectrometry measurements; indeed, the fundamental theoretical understanding of ME remains under exploration within the industry. Overcoming ME is an unavoidable hurdle in the clinical adoption of mass spectrometry technologies. Furthermore, while the manufacturing processes for chromatographic column reproducibility and soft-packaging of solvent systems may appear straightforward, they actually involve complex technical challenges in materials science, microsystem control, and ultra-trace impurity control. For instance, most mass spectrometry-related companies have yet to achieve basic “soft-packaging” capabilities. In addition, the throughput of quantitative mass spectrometry assays remains relatively low, with each sample requiring approximately 4 minutes for analysis—far less efficient than conventional clinical laboratory instruments. Automation technology in this field still remains at the level of scientific instruments; notably, no mass spectrometer currently incorporates active liquid-level sensing technology.

In brief, current mass spectrometry and chromatography technologies face four major challenges: critical technical deficiencies, excessive reliance on specialized expertise, low technical portability, and poor cost-effectiveness, underscoring an urgent need for technological innovation.

Demeter has always been a pragmatic enterprise specializing in chromatography and mass spectrometry. Its R&D team has focused on key controlling technologies for the clinical application of chromatography and mass spectrometry, dedicating over two decades to the development of cutting-edge clinical chromatography-mass spectrometry technologies. Through a series of innovations, Demeter has achieved breakthroughs in chromatographic automation and mass spectrometric stabilization. It has pioneered the MS-MATE, a highly stable mass spectrometry system designed for clinical use, and the MLC/FLC, a fully automated two-dimensional liquid chromatography system tailored for clinical laboratory testing. As the first company to independently develop, manufacture, and register these chromatography-mass spectrometry products, Demeter has not only introduced a new technological paradigm but also established itself as an industry leader representing robust technical capability.

The MS-MATE 9500/9600 Clinical Mass Spectrometry System features disruptive technologies that upgrade and replace modern mass spectrometry products. A series of groundbreaking innovations—including isotope-free calibration, alternating count measurement, automated solvent management, and RTJ (Raw Tube-to-Injection) sample pretreatment—elevate mass spectrometry systems to unprecedented new heights.Leveraging these advanced technologies, the MS-MATE 9500/9600 achieves a blood drug concentration measurement turnaround time of 100 seconds, maintains stable working calibration curves for up to 20 days, and reduces assay costs to half that of competing mass spectrometry solutions. The MS-MATE 9500/9600 further enhances its "de-specialization" capability, transforming mass spectrometry from a research-oriented instrument into one with operational requirements akin to routine clinical laboratory testing, thereby significantly boosting productivity and R&D efficiency in both laboratory and clinical settings.

Demeter has initiated a comprehensive registration plan for Class II mass spectrometry and chromatography instruments and reagents, with supporting materials, soft-packaged reagents, and quality control and calibration systems fully entering the implementation phase. In addition to the 11 models of Class II medical devices already registered, the company has 38 reagent models with registration specifications entering the actual Class II reagent registration system, covering the measurement of all drugs, vitamins, bile acids, steroid hormones, and other substances.

The FLC/MLC series products are the first chromatography systems independently developed by Demeter, representing a domestically rare and globally leading technology. Leveraging international PCT patent technology to overcome bottlenecks in sample pretreatment, these systems have already obtained Class II medical device registration certificates.The FLC series integrates assays for psychiatric, oncology, and antibiotic drugs, catering to the customized needs of specialized hospitals. Its soft-packaged reagents are gradually transitioning toward an IVD profitability model. The MLC series offers open research access to meet the needs of general hospitals for developing in-house methods, providing assay methods for antibiotics, cardiovascular drugs, and neuropsychiatric medications. This addresses the demand for small-molecule testing across multiple departments, covering a broader range of application scenarios. Notably, the mobile version of the MLC system brings therapeutic drug monitoring (TDM) closer to the bedside, enhancing clinical penetration for researchers.

Demeter places a high priority on quality and traceability systems. For five consecutive years, it has “quietly” provided proficiency testing (PT) technical services to domestic mass spectrometry and chromatography enterprises. Key players in the mass spectrometry sector, such as Hangzhou Baichen, Nanjing Pingsheng, and Beijing Hehe, along with major hospitals including Beijing Hospital, Beijing Anding Hospital, and Guangzhou Brain Hospital, are all clients of Hunan Demeter Instruments Co., Ltd. These laboratory proficiency testing programs have significantly advanced the laboratory capabilities for small-molecule analysis by mass spectrometry in China, promoting the standardization and consistency of mass spectrometry and chromatography technologies.

Meanwhile, Demeter is the largest provider of quality control systems in the field of TDM. Currently, more than hundreds of hospitals in China use the commercialized quality control and calibration systems developed by Demeter. Unlike the "free" quality control materials offered by many other companies, Demeter’s commercialized quality control materials feature standardized manufacturing processes, qualified production systems, and packaging systems, fully meeting the requirements of laboratory medicine.

In the field of microbiological testing, time-of-flight (TOF) mass spectrometry for macromolecular identification is widely used. This type of mass spectrometer features a simple structure, and the high concentration of target analytes facilitates its clinical adoption. Triple quadrupole mass spectrometry is employed for the determination of vitamins, amino acids, and other analytes; these tests have relatively lower accuracy requirements, and the clinical significance of certain assays remains controversial. Therapeutic drug monitoring (TDM) serves as a core pillar for individualizing dosing regimens. However, most drugs demand high levels of accuracy and reliability, making this area a longstanding challenge in the field of chromatography-mass spectrometry. Inaccurate measurement of immunosuppressants or cardiovascular drugs, for instance, could cause immeasurable harm to patients.

Demeter tackled the “toughest challenge” by entering the field of therapeutic drug monitoring (TDM). The company has achieved standardization for psychiatric drugs, antibiotics, antiepileptics, vitamins, and oncology medications. It offers a comprehensive portfolio of instruments, chromatography columns, quality control materials, and reagents, capable of measuring 200 different drugs. Demeter has obtained more than 100 Class I medical device registration certificates, with Class II certifications pending approval, making it the fastest-growing mass spectrometry and chromatography enterprise in China in terms of regulatory approvals.

Leveraging its accumulated technological systems and extensive market experience, Demeter has rapidly entered the fields of vitamins, amino acids, bile acids, hormones, and hormone-like substances. In the currently highly competitive mass spectrometry and chromatography sector, by focusing on key technologies, addressing critical market pain points, and building long-term competitiveness, Demeter is poised to become the leading enterprise in the endogenous mass spectrometry testing industry, following its achievement of the largest market share in TDM equipment.

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