HaiLai Xinchuang Secures Hundreds of Millions in Series B Funding Led by TF Capital, Hillhouse Ventures, and Legend Capital

VCBeat learned at the earliest opportunity,Jiangsu Hailai Xinchuang Medical Technology Co., Ltd. (hereinafter referred to as “Hailai Xinchuang”) has recently completed a Series B financing round amounting to hundreds of millions of yuan,This funding round was co-led by Taifu Capital, Hillhouse Ventures, and Legend Capital, with existing shareholders such as Taiyu Investment and Proxima Venture Partners continuing to participate. Reportedly, the proceeds from this round will be primarily used for developing product pipelines for new indications, accelerating clinical projects, and recruiting high-caliber talent.

Following the completion of its Series A financing round earlier this year, Hailai Xinchuang has secured two additional rounds of funding in less than a year, bringing its cumulative fundraising total to nearly RMB 300 million.

Hailai Xinchuang was founded in 2016. The company specializes in the research, development, manufacturing, and clinical study of TTF (Tumor Treating Fields) and is currently the only company in China conducting clinical trials for newly diagnosed GBM (glioblastoma).

Guided by the corporate value that “integrity in formulation need not be seen by others, for sincerity is known to Heaven,” Hailai Innovation developed its prototype and successfully advanced its TTF device into clinical trials within just a few years, despite the absence of prior precedents to draw upon.

Last year, HiRay Innovations successfully initiated a multicenter clinical trial of its EFE-G100 (indicated for GBM) at seven renowned hospitals across China, marking HiRay as the first company in China and the second globally to enter the multicenter clinical trial stage for Tumor Treating Fields (TTF) research and development. According toHuang Yong, Founder and CEO of Hailai XinchuangIntroduction: The EFE-G100 project is currently progressing smoothly in its clinical development, and the company expects to announce key interim clinical data by mid-2021.

Why Has Hailai Innovation Garnered Exclusive Investor Favor Within a Year, Attracting Nearly RMB 300 Million in Successive Investments from Several Prominent Venture Capital Firms?

As early as 2014, the founding team of Hailai recognized the potential of Tumor Treating Fields (TTF), which was then an emerging and virtually unexplored area in China’s oncology treatment landscape. To address this market gap, the founding team of Hailai embarked on systematic research and development efforts.

After overcoming numerous challenges in technological research and development, the first-generation prototype was successfully developed in 2016, marking the official establishment of Hailai Xinchuang and the commencement of its comprehensive industrialization pathway. Two years later, Hailai Xinchuang successfully developed China’s first tumor treating fields (TTF) device and passed the national type testing.

Last year, EFE-G100 (indicated for GBM) successfully initiated a multicenter clinical trial across seven renowned hospitals in China, making Hailai Xinchuang the first company in China and the second globally to enter the multicenter clinical stage in TTF research and development.

In addition to the EFE-G100 pipeline, which is already in multi-center clinical trials, Hailai Innovation’s four products targeting non-small cell lung cancer, gastric adenocarcinoma, brain metastases, and malignant pleural mesothelioma have completed preclinical studies. They are currently undergoing preclinical research to evaluate human safety and preliminary efficacy, with nationwide multi-center clinical trials expected to commence in 2021. Meanwhile, another 4–5 products for other oncology indications have finalized their designs and are currently in preclinical studies, with phased entry into clinical trials anticipated in 2021.

The ability to overcome critical technical challenges in the R&D of advanced medical equipment and achieve a breakthrough from “nothing” to “something” within just a few years would not have been possible without Hailei’s strong R&D team.

Hailai’s R&D team comprises nearly 30 members, over 80% of whom hold master’s or doctoral degrees. Core team members have all gained work experience at renowned universities and research institutions in Europe and the United States. This talent advantage enables Hailai to rapidly advance multi-pipeline product development and upgrades.

Meanwhile, leveraging its first-mover advantage, Hailai has secured prime academic and clinical resources in China. Due to the previous gap in the Tumor Treating Fields (TTF) technology sector, domestic experts have expressed strong support for the development of TTF devices. Currently, Hailai boasts a collaborative expert team that includes two academicians, three chairpersons of sub-specialty committees under the Chinese Medical Association, and numerous other renowned experts and professors in the field. This alignment of academic and clinical resources enables Hailai to seamlessly integrate and rapidly advance its product development and clinical research efforts.

Tumor Treating Fields (TTF) is an alternating electric field of a specific frequency that affects tumor cell division. This electric field interferes with the movement of intracellular charged particles and polarized molecules during mitosis, leading to the improper formation of certain intracellular structures and even causing cell membrane rupture. This induces apoptosis in tumor cells undergoing mitosis, thereby achieving the goal of tumor treatment.

In principle, Tumor Treating Fields (TTF) can target all solid tumor cells without inducing drug resistance, offering broad market prospects.

According to statistics, there are over 17 million new cancer cases globally each year, with approximately 4.5 million in China, and this number continues to rise. Taking newly diagnosed glioblastoma multiforme (GBM) as an example, there are currently around 55,000 new GBM cases annually in China. Due to the current monopoly of a single company in the TTF device market in China, the annual cost of treatment with imported TTF products is relatively high, at approximately RMB 1.7 million per person.

According to Huang Yong, once Hailei’s TTF product is launched on the market, it will significantly reduce patients’ treatment costs, bringing the annual cost per patient down to approximately RMB 500,000. Even so, the market prospects remain highly attractive. Based on a 20% market penetration rate (compared to approximately 40% in the United States), Hailei would be able to treat around 11,000 patients annually. Focusing solely on newly diagnosed glioblastoma multiforme (GBM), the market size in China is projected to reach RMB 5.5 billion per year.

Regarding future development plans, Huang Yong stated, “With the integration of resources and the availability of funding, Hailai Xinchuang’s first product is expected to receive regulatory approval around October next year. Furthermore, the completion of Hailai Xinchuang’s new 8,000-square-meter R&D and production base—including an SPF-grade animal laboratory and a 5,000-square-meter GMP-certified sterile manufacturing facility—will provide a superior venue for the research, development, and production of Hailai’s products.”

As clinical studies on multiple indications for TTF products continue to advance,Hailai Xinchuang plans to launch a new round of large-scale financing in June–July next year, and expects to file for listing on the STAR Market by late 2021 or early 2022.

H.J. Jiang, Managing Partner at Taifu Capital, stated, “Tumor Treating Fields (TTF) represent a significant technological innovation in the treatment of gliomas over the years, substantially extending patient survival. TTF technology has gained recognition from experts both domestically and internationally, becoming a first-line recommended therapy for gliomas. Furthermore, it can be combined with pharmacological treatments for other solid tumors, with many clinical trials for additional indications already in Phase III. While imported products are already available in the Chinese market, Hailai Xinchuang is the only domestic manufacturer to advance its independently developed TTF therapy into multicenter clinical trials. Currently, Hailai Xinchuang’s product is in the clinical trial stage, holding promise for reducing the financial burden on patients in China.”

Yi Nuoqing, Co-Chief Investment Officer of Hillhouse Capital and Head of Biopharmaceuticals and Medical Devices at Hillhouse Ventures, stated, “Tumor Treating Fields (TTF) is a non-invasive, localized therapy that inhibits mitosis in tumor cells through the specific application of alternating electric fields. Currently, the standard treatment for solid tumors in China typically involves a combination of surgery, radiotherapy, and pharmacological interventions. Despite significant advancements, there remains a substantial unmet need in improving patient survival rates and quality of life. TTF therapy is prohibitively expensive abroad, with each course costing tens of thousands of US dollars, making it unaffordable for most patients. We will support Hailei Xinchuang’s independent R&D and innovation efforts to ensure that domestic patients have access to high-efficacy, affordably priced Chinese-made products, thereby delivering tangible benefits to patients.”

Zhou Quan, Managing Director at Legend Capital, stated, “Legend Capital has long focused on device-based therapies in the oncology space, and we are delighted to join forces with Hailai Innovation. Tumor Treating Fields (TTFields), as an emerging cancer treatment modality, have already been validated in two indications: glioblastoma (GBM) and malignant pleural mesothelioma (MPM). Notably, TTFields are included as a Category 1 recommendation in the NCCN Guidelines for the treatment of GBM. Moreover, there is significant potential for future breakthroughs in other indications such as non-small cell lung cancer (NSCLC) and brain metastases, thereby creating an entirely new blue-ocean market. While numerous domestic companies are beginning to enter this field, Hailai stands out as the company advancing clinical development most rapidly. Its R&D capabilities, execution strength, and academic resources have left a deep impression on us, and its future growth prospects are promising.”

Dr. Ji Tianrong, General Manager of Taiyu Investment, stated, “Hailai Innovation boasts a team with outstanding R&D capabilities and exceptional execution. Its independently developed tumor treating fields (TTF) device, which holds independent intellectual property rights, is poised to fill a domestic gap in China, advance research on TTF therapy in the country, and provide safe, effective, affordable, and accessible clinical solutions for Chinese cancer patients, thereby benefiting patients. The market for TTF products, targeting glioblastoma and other solid tumors, is vast, with high patient acceptance and significant growth potential.”

Sun Xiaolu, a partner at BiLinXing, stated, “Tumor Treating Fields (TTF) technology utilizes alternating electric fields to disrupt mitosis in tumor cells, representing a novel, non-invasive cancer therapy. It is applicable to the treatment of various malignant tumors, offering high efficacy and low side effects, and has been hailed by the American Society of Clinical Oncology (ASCO) as a major breakthrough in the field of oncology. We are pleased to identify and support innovative enterprises with independent intellectual property rights, such as Hailai Xinchuang, to enable more Chinese cancer patients to access this groundbreaking therapeutic technology.”

Taifu Capital focuses on venture capital investment in the life sciences sector, primarily targeting high-potential early-stage and growth-stage companies. Through diversified and strategic investments and by selecting high-quality partners, we aim to seize opportunities arising from the rapid development of China’s life sciences industry. Our investment team brings years of experience and extensive industry resources in these fields, with a commitment to achieving rapid growth alongside our portfolio companies.

Hillhouse Ventures is the venture capital fund under Hillhouse Capital that focuses on early-stage innovative companies. It primarily invests in four key sectors: biopharmaceuticals and medical devices, software and hard technology, consumer internet and technology, and emerging consumer brands and services. Biopharmaceuticals and medical devices have long been a core investment focus for Hillhouse. Over the past decade, Hillhouse has invested in more than 200 outstanding enterprises in the fields of biopharmaceuticals, medical devices, and healthcare services. We aim to partner with companies as “friends of time,” jointly driving innovation and development in the broader healthcare sector to benefit more patients.

Legend Capital is an independent professional investment firm under Legend Holdings. Established in April 2001, it was renamed from Legend Investment to Legend Capital in 2012. Its core business focuses on venture capital for start-ups and growth capital for expansion-stage companies. The total assets under management in its USD and RMB funds exceed RMB 50 billion, with a strategic emphasis on innovation and growth opportunities in China. As of 2020, Legend Capital had invested in more than 500 portfolio companies, among which nearly 80 have successfully listed or been quoted on domestic or overseas stock exchanges, and over 60 have achieved exits through mergers and acquisitions.

Taiyu Investment is an independent professional venture capital firm under Tigermed, a publicly listed company. Established in 2014, Taiyu Investment focuses on equity investments in early-stage and growth-stage companies within the healthcare sector. The management team possesses extensive expertise in the pharmaceutical and health industries, broad industry resources, and rich experience in venture capital. To date, it has completed over RMB 1 billion in financing and investments, with early-stage equity investments in more than 40 projects, primarily serving as the lead investor in seed or Pre-A rounds. Its investment portfolio covers medical devices, biopharmaceuticals, health supplements, and CRO enterprises, including highly innovative and outstanding companies such as Hanyu Medical, Northcore Medical, Dunbo Medical, Weikang Bio, Intec Medical, Raydee Medical, Ruiming New Drug, and Yiyao Mofang (PharmaCube). By empowering its portfolio companies, Taiyu Investment creates value for the development of the healthcare industry in China and globally, contributing to public health.

Proxima Ventures focuses on the healthcare industry, serving enterprises with outstanding medical technology innovations that hold significant growth potential. We are dedicated to major innovations that address critical unmet clinical needs. Our team boasts diverse and international expertise, professional backgrounds, and resource networks, complemented by extensive clinical resources and industrialization experience, as well as a remarkable track record in venture capital over many years. We believe that active and effective collaboration with entrepreneurial teams not only delivers substantial economic returns but also brings about meaningful improvements to public health.