Sinotau Pharmaceuticals Completes $45M Series D Financing Ahead of Hong Kong IPO Filing

VCBeat (WeChat: vcbeat) has learned that Xiantong Medicine, a leading enterprise in the field of radiopharmaceutical theranostics, recently announced the completion of its RMB 320 million Series D financing. This follows its July 2020 announcement of completing an RMB 280 million Series C round led by strategic partners such as the China Isotope & Radiation Corporation Innovation Industry Investment Fund and Sinopharm Capital. In total, the company has secured RMB 600 million in financing within six months. The current round was led by CICC Qide Fund, under CICC Capital, with participation from renowned institutions including Langmafeng Venture Capital, Longmen Venture Capital, Panya Investment, and Deyi Capital. Meanwhile, existing shareholder Hetang Fund continued to increase its shareholding. The funds raised will be used to support the preclinical development and clinical studies of therapeutic and diagnostic radiopharmaceutical projects.

China Renaissance served as the exclusive financial advisor to Xiantong Pharma for this round of financing.

Xiantong Pharma is an innovative pharmaceutical company specializing in the R&D, manufacturing, and clinical academic promotion of radiopharmaceuticals. Leveraging globally leading R&D resources in the fields of radiopharmaceuticals and monoclonal antibody drugs, the company has developed a portfolio of targeted therapeutic and precision diagnostic radiopharmaceuticals for oncology, neurodegenerative diseases, and cardiovascular conditions. By combining independent development with external collaborations, Xiantong Pharma has established a product pipeline that integrates imitation and innovation, balancing risk and return. Currently, four diagnostic drugs and two therapeutic drugs from its pipeline have entered clinical trial stages.

The global radiopharmaceutical market was valued at $4.8 billion in 2017 and is projected to reach $26 billion by 2030, with the discovery and application of new radioisotopes such as Lutetium-177 (177Lu) serving as the primary driver of this rapid growth. However, due to the late start of nuclear medicine in China, the Chinese radiopharmaceutical market accounts for less than 7% of the global share. With the relaxation of regulations on the allocation of nuclear medicine equipment, the implementation of the Marketing Authorization Holder (MAH) system for radiopharmaceuticals, and the rise of innovative radiopharmaceutical companies represented by Beijing Xiantong International Technology Co., Ltd., China’s nuclear medicine market is poised for robust development.

As a pioneer and leader in the research and development of innovative radiopharmaceuticals in China, Xiantong Pharma continuously introduces high-quality partners from the radiopharmaceutical industry chain and capital markets through strategic financing. This further integrates upstream and downstream resources within the domestic and even global radiopharmaceutical industry chains, facilitating the rapid development of China’s radiopharmaceutical sector and benefiting patients.

Commenting on this transaction, Mr. Xu Xinsheng, Founder and Chairman of Xiantong Medicine, stated: “With the gradual adoption of nuclear medicine equipment in China and the continuous emergence of novel radionuclide-based drugs, the radiopharmaceutical sector has entered a phase of rapid growth. Although China’s nuclear medicine field is still in its early stages compared to developed countries in Europe and the United States, we are confident that we will quickly catch up. Xiantong is committed to sparing no effort in the research and development of radiopharmaceutical products, thereby providing ample resources for professionals in the nuclear medicine community. We are confident that, with the support of high-quality capital and through joint efforts with our partners, we will establish Xiantong as a leading enterprise in this niche sector and contribute to the rise of China’s radiopharmaceutical industry.”

The investment team of CICC Qide Fund stated, “Globally, there is a robust foundation for the research and development and industrial reserves of radiopharmaceuticals. Since 2018, long-half-life radiopharmaceuticals have achieved milestone breakthroughs in oncology treatment, making nuclear medicine once again a focal point for pharmaceutical giants and innovative drug companies. We believe that ‘theranostics,’ based on radiopharmaceuticals and related technologies, has become an integral component throughout the precision medicine system and will unleash exponential growth in China’s radiopharmaceutical market. As a new-generation force in the development of radiopharmaceuticals in China, Xiantong Medicine possesses industry-leading nuclear chemistry technology, accumulated experience in new drug R&D, and industrialization capabilities. It has integrated the highest-quality upstream and downstream resources in the domestic radiopharmaceutical supply chain, demonstrating significant core competitiveness and platform scarcity. CICC will continue to serve the company by integrating financial and industrial resources, helping Xiantong continuously provide Chinese patients with innovative radiopharmaceutical diagnostic and therapeutic products that benchmark against international frontiers and reach world-class standards. This will truly make severe and chronic diseases ‘feared no more’ when it comes to nuclear medicine, bringing health and well-being to Chinese patients.”

As the financial advisor for this transaction, Dr. Zhang Xiao, Managing Director at China Renaissance Capital, stated: “In recent years, the global radiopharmaceutical sector has achieved several milestone events, drawing significant attention from the worldwide pharmaceutical industry. As a leading enterprise in domestic innovative radiopharmaceuticals, Xiantong Pharma has accumulated extensive technology and product portfolios in this field, establishing exceptionally high barriers to entry. We are honored to have facilitated this substantial round of financing at a critical stage of the company’s development, thereby supporting its growth. We look forward to the company’s rapid expansion following this financing round, enabling it to secure a competitive position in the global radiopharmaceutical R&D landscape at an early stage.”