SaiFu Pharma Secures Over RMB 300 Million in Series C Financing to Advance Integrated CRO Platform for Innovative Therapies

VCBeat learned that on August 19, 2021, Saifu Pharmaceutical, a pharmaceutical CRO service platform, announced the completion of its Series C financing round, raising over RMB 300 million. The round was led by CICC Qide Fund, under CICC Capital, with participation from GF Qianhe, Huakong Investment, and Baotai Biological. The funds will be used to continuously enhance Saifu Pharmaceutical’s one-stop innovative pharmaceutical CRO service platform capabilities, expand production capacity, and strengthen team building.

This financing round marks Saifu Pharmaceutical’s third funding completion within 10 months, following its nearly RMB 200 million Series B financing in October 2020 from investors including China Life Insurance and Legend Capital, and its RMB 100 million Series B+ financing in December of the same year from investors including SDIC Venture Capital and Legend Capital.

In recent years, the trend toward integrated CRO services has become increasingly pronounced, with major overseas CROs already capable of providing one-stop solutions. Saifu Pharmaceutical is a rare platform-based company in China that offers comprehensive one-stop R&D solutions for pharmaceutical enterprises. The company provides specialized technical services covering pharmaceutical R&D consulting, drug screening, pharmaceutics and formulation, pharmacology and efficacy studies, animal models, drug metabolism analysis, non-clinical safety evaluation, clinical biological sample testing, Phase I clinical trials, and pharmacovigilance, as well as turnkey customized development and innovative drug incubation and investment services. With branches established in Beijing, Shenzhen, Chengdu, Suzhou, Shenyang, and the United States, Saifu Pharmaceutical effectively enhances R&D efficiency, reduces costs, and shortens development cycles. Its customized solutions and end-to-end project management system cover the key stages of innovative drug development, enabling rapid and efficient support for partners in advancing their drug R&D processes.

Driven by a series of policies and reform measures introduced in China to encourage the enhancement of drug R&D capabilities, as well as factors such as rising drug development costs and sustained growth in pharmaceutical demand, China’s pharmaceutical CRO industry is experiencing robust development. In particular, over the past two years, innovative therapies such as gene therapy and cell therapy have entered a “fast lane” of development, leading to increasingly strong demand for related CRO services.

In 2017, Saifu Pharmaceutical recognized the immense potential in the niche sectors of innovative drugs and novel therapies. Centering on service innovation and technological innovation, it conducted in-depth and comprehensive technical reserves, team building, and platform development across multiple innovative therapeutic areas. Currently, Saifu Pharmaceutical has provided R&D services for innovative therapies—including vaccines, nucleic acid drugs, gene therapies, antibody-drug conjugates (ADCs), cell therapies, multispecific antibodies, and oncolytic viruses—to numerous enterprises.

In addition, Liu Yang, Chairman and CEO of Saifu Pharmaceutical, stated: “The pharmaceutical CRO industry is, at its core, a technology service sector; therefore, rapid corporate growth is inseparable from talent-driven momentum.” Accordingly, Saifu Pharmaceutical launched a partnership program from its inception. “Moving forward, the company will continue to implement this partnership program, creating an entrepreneurial platform for innovators in the novel drug development industry.”

Currently, Saifu Pharmaceutical has assembled a research and expert team with extensive experience in the development and evaluation of innovative drugs. The company has seen significant growth in order volume, served hundreds of pharmaceutical enterprises, and is currently filing applications for multiple innovative therapy projects and dual filings in China and the United States.

Liu Yang stated, “Under the impact of the COVID-19 pandemic, global attention and investment in the biopharmaceutical sector have reached unprecedented levels. Consequently, the innovative drug CRO industry has entered a period of opportunity and a strategic window, with a substantial golden phase of development still ahead, making it worthy of deep cultivation.” Moving forward, Saifu Pharmaceutical will gradually enhance its one-stop CRO service platform, continuously solidify its unique advantages in the tracks of innovative drugs and therapies, and strive to become a world-class one-stop CRO service platform for innovative drugs, contributing to the advancement of R&D for innovative drugs and therapies in China.

Dr. Huang Xu, Executive General Manager of CICC Capital, stated as an investor in this round of financing: “With the rapid development of innovative pharmaceuticals in China, demand for one-stop R&D services has surged. Saifu Pharmaceutical possesses rare industry qualifications and resources, forward-looking strategic layout, a large team of top-tier professional technicians, and rigorous, efficient experimental processes. It is well-positioned to provide high-quality one-stop services for the R&D and production of new drugs and medical technologies. As a fund focused on biopharmaceutical investments, we firmly support Saifu’s continued growth to better facilitate the advancement of innovative pharmaceuticals.”

Mr. He Kuanhua, Chairman of GF Qianhe, stated, “We have long been bullish on the development of China’s innovative drug CRO industry and have consistently made strategic investments over the years, including in renowned enterprises such as Pharmaron, Medicilon, and Sunshine Noah. Saifu Pharmaceutical is undoubtedly poised to become another shining star in this field. We are honored to accompany its growth and contribute even more to the advancement of China’s innovative drug sector!”

Dr. Zhang Yang, Chairman of Huakong Investment, stated, “Preclinical safety evaluation is a critical component in the development of innovative drugs, characterized by exceptionally high barriers to entry in terms of business qualifications and talent requirements. In recent years, the market has faced a situation where demand outstrips supply. Saifu Pharmaceutical is one of the very few companies in China with extensive experience in providing integrated preclinical CRO services. Backed by strong technical expertise and robust corporate management capabilities, the company has grown at a rate far exceeding the industry average since its establishment, earning an outstanding reputation among its clients. Adhering to the philosophy of value investment, Huakong Investment focuses on sectors such as biopharmaceuticals. Moving forward, we will continue to support the growth of more outstanding enterprises in the pharmaceutical industry, deliver satisfactory returns to our shareholders, and make every effort to contribute to the advancement of China’s innovative drug industry.”

CICC Qide (Xiamen) Innovative Biopharmaceutical Equity Investment Fund (hereinafter referred to as “CICC Capital Qide Fund”) is an equity investment fund under CICC Capital Operation Co., Ltd. (hereinafter referred to as “CICC Capital”) that focuses on innovative medicines, representing a significant breakthrough in CICC Capital’s strategic layout within the biopharmaceutical industry.

GF Qianhe is a wholly-owned subsidiary of GF Securities, responsible for the firm’s proprietary direct investment business. It focuses on strategic investments in sectors such as biomedicine and has invested in a number of well-known enterprises, including Pharmaron (SZ300759), BrightGene Bio-Medical Technology (SH688166), Medicilon (SH688202), Sun-Novo Pharmaceutical Research (SH688621), Nuotai Biology (SH688076), and Baiyang Healthcare Group (SZ301015). From January to August 2021, eight portfolio companies of GF Qianhe went public, placing it among the top tier of securities firms in direct investment. Its parent company, GF Securities, was established in 1991 as one of the first comprehensive securities companies in China. It was listed on the Main Board of the Shenzhen Stock Exchange in 2010 and on the Main Board of the Hong Kong Stock Exchange in 2015. In 2020, GF Securities reported operating revenue of RMB 29.153 billion and net profit attributable to shareholders of the listed company of RMB 10.038 billion. The group has adopted a diversified capital market layout through its holding structure, controlling GF Fund Management Co., Ltd. (with a 54.53% equity stake) and holding a stake in E Fund Management Co., Ltd. (as one of the largest joint controlling shareholders), thereby continuously enhancing its overall competitiveness.

Huakong Investment was established in 2007. It manages over 20 subsidiary funds, including venture capital (VC), private equity (PE), industry-specific funds, merger and acquisition (M&A) funds, and overseas funds, covering various investment stages and specialized sectors. The firm focuses on high-growth industries such as biopharmaceuticals, advanced manufacturing, next-generation information technology, new energy, new materials, and environmental protection and energy conservation. In recent years, it has successfully invested in numerous outstanding enterprises in the healthcare sector, including Junshi Biosciences, Allgens Medical, Crystal Pharma, Suzhou Shengnuo, Aim Vaccine, Boreas Neurotech, Bendao Genomics, and Sunstone Pharmaceuticals.

Baotai Biotech is a high-tech enterprise specializing in the research, development, and manufacturing of POCT (Point-of-Care Testing) in vitro diagnostic instruments and reagents. Since its establishment, the company has remained committed to technological innovation, placing particular emphasis on R&D investment. It has established a corporate R&D center and built a well-structured team of research professionals led by individuals with doctoral and master’s degrees, including numerous academic leaders. The company currently holds multiple core independent intellectual property rights and has obtained CE certification for several of its products.