Beijing Biostar Pharmaceuticals Completes RMB 890 Million Pre-IPO Round Led by EF Capital and Matrix Partners China

Beijing Huahao Zhongtian Biotechnology Co., Ltd. (“Huahao Zhongtian”), a company dedicated to the development of innovative small-molecule anti-tumor drugs derived from natural microorganisms, recently announced the completion of its Series E (Pre-IPO) financing round, raising RMB 890 million (approximately USD 135 million). The round was co-led by Yifeng Capital and Matrix Partners China, with participation from CCB International, Sinopharm Capital, Tianchuang Capital, and Chengdu Biological City. The proceeds will be allocated to the continuous development of the company’s product pipeline, in-depth construction of key technology platforms, market promotion of the lead product optidelon which is nearing launch, Phase II construction of its industrialization base, international multi-center clinical trials, introduction of new drug candidates, and global strategic collaborations.

Leveraging its advanced combinatorial biosynthesis technology platform, Biostar continues to deepen its strategic layout in the specialized field of novel natural microbial small-molecule anticancer drugs, constantly enriching its R&D platform and product pipeline, with multiple projects currently in clinical and preclinical development stages.

Utidelone (Utidit®), a proprietary Class 1 new drug developed by Biostar, offers competitive advantages including a broad anticancer spectrum, significant efficacy, favorable safety profile, and lower cost. Preclinical studies have demonstrated that its antitumor activity against common malignancies such as breast, lung, liver, colorectal, and prostate cancers is superior to that of paclitaxel, and it exhibits robust efficacy against tumors multidrug-resistant to paclitaxel and various other chemotherapeutic agents. Phase III clinical trials of utidelone (Utidit®) for the treatment of advanced breast cancer have shown that, compared with standard regimens, it not only significantly improves the objective response rate (ORR) and progression-free survival (PFS), but also significantly extends overall survival (OS) in patients with advanced breast cancer.

The study results were presented as oral presentations at the ASCO Annual Meeting on two occasions and were recognized as a major advance in cancer research by ASCO in 2016. The corresponding papers were published in the leading international oncology journals, Lancet Oncology and Annals of Oncology. Utidelone (Utidel®) is expected to receive manufacturing approval and be launched for commercial sale in the near future, thereby achieving the commercialization of China’s first epothilone-based novel drug, benefiting a broad population of patients with advanced cancer and addressing unmet clinical needs.

Biostar’s robust product development pipeline also includes the development of additional solid tumor indications for utidelone, an oral formulation of utidelone, and a series of Class 1 national innovative anti-tumor drugs—such as ONCO-1, BG18, BG44, BGM57, BGMT8, and BGLP1—with diverse targets and mechanisms of action.

Dr. Tang Li, Chairperson and Founder of Biostar, stated, “We are deeply grateful for the recognition and enthusiastic participation of numerous leading domestic and international investment institutions, including Yifeng Capital, Matrix Partners China, CCB International, Sinopharm Zhongjin Capital, Tianchuang Capital, and Chengdu Biological City. We also extend our appreciation to Kaicheng Capital for its support. Previously, Biostar secured investments from renowned firms such as SDIC Innovation Investment, Betta Pharmaceuticals, Fortune Capital, and Longpan Investment, demonstrating strategic investors’ strong confidence in Biostar’s future performance in the pharmaceutical market. The successful oversubscription of this financing round marks a new milestone in Biostar’s development, facilitating the acceleration of existing product development, enriching and expanding our pipeline, propelling the company’s internationalization efforts, and laying a solid foundation for its initial public offering (IPO).”

Zhu Jinqiao, Chairman of Yifeng Capital, stated: “As novel microtubule-stabilizing agents, epothilone compounds have long been a focal point in chemotherapy drug R&D for major international pharmaceutical companies. The Biostar team, led by Dr. Tang and Dr. Qiu, has dedicated 18 years to this field. Their newly developed epothilone-based drug, Utidelone, demonstrated excellent efficacy and safety in the registrational clinical trial for patients with advanced breast cancer, benefiting both the overall study population and all molecular subtype subgroups. This will provide new treatment options for patients with advanced breast cancer. Furthermore, Utidelone has shown clinical benefits in patients with other solid tumors, such as lung and colorectal cancers. It holds the potential to replace paclitaxel as a new mainstream chemotherapy agent, indicating substantial market potential. We look forward to Utidelone bringing greater well-being to more cancer patients.”

Dr. Yu Zhiyun, Managing Director at Matrix Partners China, stated, “There has been no genuine breakthrough in chemotherapy drugs for a long time. Utidelone, a novel Class 1 chemotherapy drug independently developed by Biostar, not only demonstrates superior progression-free survival (PFS) and overall survival (OS) compared to existing chemotherapy regimens in advanced breast cancer, but also avoids complications such as neutropenia. It is rare for a drug to be included in the CSCO Guidelines prior to regulatory approval. We are optimistic about Utidelone’s therapeutic prospects in major indications such as breast cancer and lung cancer, as well as the subsequent development of an oral formulation. We hope that the company’s products will reach the market soon to benefit a broad patient population.”

Yifeng Capital is among the earliest professional investment firms in China dedicated to the biopharmaceutical sector. Its investment team comprises PhDs in biopharmaceutical sciences from top-tier universities both in China and abroad. The firm focuses on global venture capital (VC) and private equity (PE) investments in biopharmaceuticals, with a particular emphasis on original innovative drugs and high-end medical devices. It has conducted rigorous screening and invested in more than 40 high-quality enterprises in China and overseas, including Chipscreen Biosciences, Frontier Biotechnologies, Ascentage Pharma, Pumen Technology, Harbour BioMed, Obio Technology, Apexigen, and Centrexion. Leveraging its outstanding investment performance and exceptional investment research capabilities, Yifeng Capital has been honored as one of the “Top 30 Healthcare Investment Institutions in China for 2020” by Zero2IPO and listed among the “Top 10 Best Exit Cases of 2019” by China Venture. The firm was also featured in an exclusive interview by Nature, the world’s leading scientific journal.

Matrix Partners China is the most active venture capital firm in the early-stage market. Over the decade since its establishment, it has remained deeply rooted in the local ecosystem, steadfastly investing in Chinese entrepreneurs. Matrix Partners China has invested in more than 650 companies, including recently listed firms such as Li Auto, XPeng Motors, RemeGen, Peijia Medical, and Clonwe Diagnostics, as well as a large portfolio of high-quality enterprises like InnoCare Pharma, Didi Chuxing, Ele.me, Guazi Used Cars, Futu Holdings, LexinFintech, Momo, Liepin, Yuanfudao, VIPKID, D3 Bio, and iSpace.