Zhongsheng Ruichuang Completes RMB 280 Million Series B Financing to Advance Clinical Trials and Commercialization of Multiple Innovative Drug Candidates
On December 15, 2020, Guangdong Raynovent Biotech Co., Ltd. (hereinafter referred to as “Raynovent” or the “Company”) officially announced the completion of its RMB 280 million Series B financing round. This round was jointly invested by several renowned investment institutions, including Yijing Capital, Huatai Zijin, CITIC Medical Fund, Yifeng Capital, and Bank of Communications Sci-Tech Innovation Fund. Existing shareholders Qichi Capital, Boyuan Capital, and Zhongsheng Pharmaceutical continued to increase their investments. The funds raised will be primarily used for clinical trials and industrialization of the Company’s multiple products, as well as further expansion of its product R&D pipeline and team.
Raynovent, established in October 2018, is a controlled subsidiary of Zhongsheng Pharmaceutical (stock code: 002317), a company listed on the A-share market. Leveraging its understanding and insights into the pathophysiology of respiratory and liver diseases, Raynovent focuses on developing novel therapies for major conditions such as influenza, avian influenza, idiopathic pulmonary fibrosis, and non-alcoholic steatohepatitis (NASH). Currently, multiple innovative drugs targeting NASH and respiratory diseases are in preclinical and clinical stages. Notably, ZSP1601, the first innovative drug approved in China for clinical trials in NASH treatment, has entered Phase II clinical trials, while ZSP1273, the first RNA polymerase inhibitor for the treatment and prevention of influenza A and human avian influenza, has advanced to Phase III clinical trials.
As a next-generation RNA polymerase inhibitor, ZSP1273 tablets are one of the innovative drug development projects jointly developed by Raynovent and the team of Academician Zhong Nanshan. This Class 1 innovative drug features a well-defined mechanism of action and independent global intellectual property rights. Preclinical data show that the in vitro anti-influenza viral activity of ZSP1273 tablets is more than 1,000 times greater than that of oseltamivir. Clinically, it is intended for the prevention and treatment of influenza A, addressing issues of resistance to existing anti-influenza medications and vaccine immune escape, thereby meeting the substantial clinical demand for anti-influenza viral drugs.
Recently, the National Investigators’ Meeting for the Phase III Clinical Trial of ZSP1273 Tablets, a Next-Generation Influenza Polymerase Inhibitor for the Treatment of Influenza A, was successfully held in Guangzhou. The meeting was hosted by the National Clinical Research Center for Respiratory Diseases, the National Center for Respiratory Medicine, and the Guangzhou Institute of Respiratory Health; co-organized by raynovent (Guangdong Raynovent Biotech Co., Ltd.); and attended by 79 research centers across China, including the First Affiliated Hospital of Guangzhou Medical University, West China Hospital of Sichuan University, the First Affiliated Hospital of Zhejiang University School of Medicine, and Peking University Third Hospital.
Zhongsheng Pharmaceutical, a traditional pharmaceutical company with a 41-year history, focuses on core therapeutic areas including ophthalmology, cardiovascular and cerebrovascular diseases, respiratory conditions, digestive disorders, and age-related degenerative diseases. Research and development (R&D) innovation has always been the cornerstone of Zhongsheng Pharmaceutical’s growth, and its R&D strategy serves as a key driver in realizing the company’s vision of becoming a “pharmaceutical and health industry group.”
Since the implementation of its strategic upgrade plan in 2010, the company has laid out innovative drug R&D projects in the fields of ophthalmology, respiratory diseases, non-alcoholic steatohepatitis (NASH), oncology, and cardiovascular and cerebrovascular diseases. Currently, including ZSP1273, the company has entered into collaborative development agreements for 11 Class 1 innovative drug projects. Among these, it has obtained clinical trial approvals for seven Class 1 new drugs and two Class 2.2 new drugs, while eight products have passed the consistency evaluation of quality and efficacy for generic drugs. In the first-ever “Most Innovative Pharmaceutical Companies in the Asia-Pacific Region” list released by Clarivate Analytics in 2019, the company ranked 26th in the “Top 100 Most Innovative Pharmaceutical Companies in the Asia-Pacific Region – SMEs” category and 14th among the 43 selected Chinese companies, marking its steady progression into the first tier of domestic innovative drug R&D.
Backed by Yizhou Group, a Fortune 500 enterprise in China, Yijing Capital boasts extensive resources and industry expertise in both the industrial and investment sectors. The firm operates multiple investment platforms, deploying proprietary capital for direct investments while simultaneously establishing fund-based portfolios. Its investment focus spans TMT, high-end intelligent manufacturing, consumer goods, and healthcare. To date, Yijing Capital has invested in several biopharmaceutical and medical device companies, including Zhidao Bio, eTheRNA, Ezhen Bio, Avail Medical, and MedSci.
Huatai Zijin is the specialized platform under Huatai Securities engaged in private equity investment. Leveraging the full-business-chain advantages of Huatai Securities, Huatai Zijin has established an “investment + investment banking” capital service model, providing one-stop financial and capital services to partner enterprises. As of the end of 2019, Huatai Zijin managed assets exceeding RMB 50 billion, with 26 private equity funds under management. Its investment activities primarily focus on industrial integration and upgrading, healthcare, TMT (Technology, Media, and Telecom), and intelligent manufacturing. The company has received numerous accolades, including “Golden Bull Securities Firm Private Equity Institution” and “Golden Bull Securities Firm Private Equity Elite” from China Securities Journal; “Top 50 Chinese Private Equity Institutions in 2018” and “Top 20 Investment Institutions in Healthcare” from Zero2IPO China; “Top 10 Best Private Fund Subsidiaries of Securities Firms” and “Top 10 Best Medical Service Investment Institutions” from China Venture; and “Top 10 Best Fundraising Private Equity Institutions” by Financing China in 2019.
CITIC Medical Fund is CITIC’s equity investment management platform focused on the pharmaceutical and broader healthcare sector, dedicated to building an empowering pharmaceutical industry fund with deep capabilities in industry consolidation. Its core team comprises industry experts with extensive operational experience at multinational pharmaceutical companies and financial experts with deep expertise in the finance sector.
Yifeng Capital is one of the earliest professional biomedical investment firms in China. Its investment team comprises PhDs in biomedical sciences from top-tier universities both domestically and internationally. The firm has been honored with awards such as “Zero2IPO · Top 30 Healthcare Investment Firms in China 2020” and “CVSource · Top 20 Best Biomedical Investment Firms 2019.”
Managed by BOCOM International, the BOCOM Sci-Tech Innovation Fund is China’s first bank-affiliated equity investment fund focused on sci-tech innovation. It primarily targets leading enterprises with “Four New” characteristics in fields such as next-generation information technology, biopharmaceuticals, high-end equipment, new energy, and new materials. As a key instrument for the Bank of Communications Group to implement financial support for the real economy and foster the growth of sci-tech innovative companies, the fund leverages the Group’s resources to provide comprehensive, full-lifecycle financial services to high-quality sci-tech innovation enterprises.
Headquartered in Hong Kong and Shanghai, Lake Bleu Capital is an investment platform focused on the healthcare sector, with assets under management totaling billions of US dollars. Its secondary market USD fund is one of the largest healthcare-focused secondary market funds in Asia. Owing to its outstanding investment performance, the fund has been repeatedly recognized by authoritative institutions as the Best Secondary Market Fund in Asia and was awarded the “Best Secondary Market Fund (Over $500 Million AUM) – 5-Year Track Record” award by AsiaHedge in 2020. Lake Bleu Capital is also active in the mid-to-late stages of private equity investment in China’s healthcare industry, having successfully invested in more than 30 high-growth companies. The firm provides diverse value-added services, supporting its portfolio companies in capital operations and business collaborations.
Boyuan Capital, established in 2017, is a professional investment firm dedicated to investing in and incubating outstanding healthcare startups in the Chinese market. Its management team comprises renowned overseas-returnee entrepreneurs and venture capital experts from both China and abroad, bringing deep industry backgrounds and extensive investment experience in the healthcare sector.