China-US Waterstone Pharmaceuticals Secures RMB 100 Million Series C+ Financing to Advance Nephrology Pipeline

VCBeat (WeChat: vcbeat) has learned that on November 30, 2020, Sino-American Huashitong Biopharmaceutical Technology (Wuhan) Co., Ltd. announced that following the completion of its C-round financing of RMB 440 million in September this year, the company recently secured RMB 100 million in C+ round financing led by Weigao Group, with existing shareholders China Merchants Zhiyuan Capital and Dexin Huifu Fund continuing to participate. This round of financing will further strengthen the company’s financial reserves for future industrial expansion and new drug R&D, and facilitate in-depth collaborations with leading enterprises in the field of nephrology treatment.

Zhongmei Huashitong was established in December 2009. With its R&D and management headquarters located in Wuhan Optics Valley Bio-city, the company specializes in the research, development, and production of polymer-based drugs for kidney disease and metabolic disorders. The company possesses a polymer-based innovative drug screening platform, with four innovative drugs expected to enter clinical trials sequentially. Additionally, it has established four production lines covering the entire process of polymer drug manufacturing, from intermediates and active pharmaceutical ingredients (APIs) to high-end formulations, becoming the largest domestic supplier of intermediates to international pharmaceutical companies for drugs treating hyperkalemia and hyperphosphatemia in kidney disease.

Dr. Zhang Faming, Chairman of Sino-US Huashitong, stated: “Weigao is a renowned domestic enterprise engaged in the production and sales of medical devices and pharmaceuticals, with business operations spanning multiple disease areas including orthopedics, nephrology, and cardiovascular diseases. It is a leading player in China’s blood purification industry. The introduction of Weigao as a strategic investor in this round of financing reflects Weigao’s recognition of Sino-US Huashitong’s products and R&D capabilities, laying a solid foundation for both parties to further deepen their cooperation and market expansion in the field of nephrology treatment.”

Xing Jianglong, General Manager of Weigao Capital, stated: “Sino-American Huashitong focuses on full-industry-chain research into medical polymer drugs and materials, having overcome multiple key technical challenges. We are highly optimistic about the core competitiveness the company has established in this field and hope to build a long-term strategic partnership with Huashitong in the development and sales of nephrology drugs.”

Wen Feng, Deputy General Manager of China Merchants Zhiyuan Capital, stated: “The Huashitong team combines local expertise with a global perspective. Over the past decade, it has become a partner to innovative polymer-based pharmaceutical companies worldwide, establishing an end-to-end industry chain for polymer drugs ranging from screening to production. China Merchants Zhiyuan closely monitors the development of the biopharmaceutical industry, and this investment in Huashitong represents another strategic move in the pharmaceutical sector. We look forward to the company achieving greater success in the field of metabolic polymer-based drugs, thereby benefiting more patients.”

Yuan Yang, Executive Partner of Dexin Huifu, stated that Zhongmei Huashitong’s polymeric innovative drug screening platform offers unique competitive advantages in the development of adsorbent polymeric drugs. Meanwhile, the company has established a full industry chain layout for polymeric drugs, spanning from intermediates to active pharmaceutical ingredients (APIs) and high-end formulations—a rarity not only in China but also globally. Through this round of financing, the company aims to accelerate its strategic deployment in R&D and market expansion capabilities for polymeric drugs.

Founded in 1988, Weigao is dedicated to developing its core businesses in medical devices and pharmaceuticals, while also expanding into construction, finance, and other industries. Under Weigao Holdings are three subsidiaries: Weigao Group, Weigao Construction Industry Group, and Weigao Financial Holding Group. Weigao Group comprises seven industrial divisions: Medical Products, Blood Purification, Orthopedics, Medical Equipment, Pharmaceuticals, Cardiovascular Consumables, and Medical Commerce. The Construction Industry Group’s main businesses include real estate, building materials, hotels and hospitality, food, and tourism. The Financial Holding Group’s primary activities encompass asset and fund management, credit services, equity investment, and securities management. In 2020, Weigao ranked 375th among China’s Top 500 Enterprises, 176th among China’s Top 500 Manufacturing Enterprises, 165th among China’s Top 500 Private Enterprises, and 92nd among China’s Top 500 Private Manufacturing Enterprises.

China Merchants Zhiyuan Capital, established in 2009, is a wholly-owned private equity fund subsidiary of China Merchants Securities, which is controlled by the large central state-owned enterprise China Merchants Group. With cumulative assets under management nearing RMB 24 billion, it ranks among the leading brokerages in private equity. China Merchants Zhiyuan Capital focuses on investing in leading enterprises within niche sectors and has completed investments in over one hundred high-quality companies. Its core businesses include private equity fund management, industrial investment fund management, and mezzanine fund management. Currently, it has actively expanded into Pre-IPO investments, industrial M&A funds, growth funds, venture capital funds, mezzanine funds, and incubator fund-of-funds, boasting a comprehensive fund spectrum and broad industrial coverage. Leveraging years of industry experience, China Merchants Zhiyuan Capital has built multiple professional and competent equity investment teams, possessing outstanding capabilities in industrial resource integration and capital market operations.

Beijing Dexin Huifu Equity Investment Management Center (Limited Partnership) is the fund management platform under Beijing Dexin Huifu Investment Management Co., Ltd. Beijing Dexin Huifu Investment Management Co., Ltd. is a professional investment management and service institution specializing in private equity investment and corporate financial advisory. Rooted in China with a global perspective, the company leverages its keen technological insights, sophisticated capital operation capabilities, and broad international vision. It is committed to building itself into a world-class private equity investment firm, featuring a top-tier management team, strong capital strength, and an outstanding reputation within the industry.