Lu Daopei Medical Group Secures Over RMB 1 Billion in Series B+ Financing Led by YUEIN Healthcare Fund

China’s renowned hematology specialty medical group—Lu Daopei Medical Group—recently announced the completion of its Series B+ equity financing, raising over RMB 100 million. The round was led by Yueyin Medical Fund, with participation from China Merchants Securities Co., Ltd., SBCVC, and Partner Capital. Existing investor Pudao Medical continued to increase its investment, while Partner Capital served as the exclusive financial advisor.

Founded in 2001 by Academician Lu Daopei, a distinguished hematologist in China, Lu Daopei Medical Group has grown over the past two decades to operate four for-profit, tertiary-level specialized hematology hospitals: Hebei Lu Daopei Hematology Hospital, Beijing Lu Daopei Hospital, Beijing Lu Daopei Hematology Hospital, and Shanghai Daopei Hospital. It has become the leading private specialized medical group in the field of hematology in China.

Currently, the Lu Daopei Medical Group has become one of the most active hematopoietic stem cell transplantation centers in the world. In 2019, Lu Daopei Hospital successfully completed 1,081 hematopoietic stem cell transplants, making it the largest transplant center in China at present. Among these cases, 70% were haploidentical transplants, which significantly increased the chances for patients with hematologic malignancies to find donors, thereby enabling the majority of patients to undergo transplantation.

It is reported that Lu Daopei Hospital initiated clinical trials of CAR-T therapy for leukemia in 2015, making it one of the earliest centers in China to conduct such research. As of the end of June 2020, the hospital had completed 914 CAR-T clinical trial cases, ranking among the leading single medical centers globally, and had developed a distinctive CAR-T bridging transplantation technique characteristic of Lu Daopei Hospital.

Lu Wenzhao, Chairman of Lu Daopei Medical Group, stated, “We are deeply grateful for the recognition and support from the investors in this funding round. Lu Daopei Medical Group aims to become a globally leading private healthcare group specializing in hematology and oncology, integrating clinical care, scientific research, and education. The Group currently operates four for-profit tertiary specialized hematology hospitals in cities such as Beijing and Shanghai. With a total hospital floor area exceeding 100,000 square meters, more than 1,200 hospital beds, and 108 hematopoietic stem cell transplantation suites, it has established itself as a formidable hematology healthcare group both domestically and internationally. Over nearly two decades of development, Lu Daopei Medical Group has broadened and strengthened its path toward saving patients’ lives. We extend our gratitude to everyone who has contributed to this mission. The next phase of the Group’s growth requires the assistance and support of more partners, including investors. The investors in this round are professional domestic healthcare investment institutions. We believe that, with collective efforts and support, Lu Daopei Medical Group will reach new heights for private medical institutions in China.”

Xiong Shuirou, Managing Director of Yueyin Medical Fund, stated, “We are deeply grateful to entrepreneurs for their recognition of Yueyin Medical Fund. Lu Daopei Medical is an exceptionally rare enterprise in China’s healthcare services sector. It is one of the few private medical groups in China that has achieved global influence in its specialized field, ranking among the world leaders in hematopoietic stem cell transplantation and the number of CAR-T clinical trials. The Group’s success in achieving this distinction is attributable to the extraordinary efforts of its medical team, led by Academician Lu Daopei, the pioneer of bone marrow transplantation in China, as well as its ambitious management team. The market for hematologic diseases in China is vast, with rigid demand that remains significantly unmet. Among the top ten most prevalent malignant tumors, leukemia and lymphoma are hematologic conditions; yet, out of an annual demand of 230,000 transplants, only 10,000 are actually performed. We hope that, through the efforts of Lu Daopei Medical Group and the application of globally leading diagnostic and therapeutic technologies, more patients’ lives can be saved. This aligns with Yueyin Medical Fund’s vision.”

Lu Yancen, Founding Partner of Pudao Medical, stated: “Academician Lu Daopei is the founder of bone marrow transplantation in China and Asia. Lu Daopei Medical operates China’s largest hematopoietic stem cell transplantation center, serving as the ‘last resort’ for Chinese patients with hematologic malignancies. It is also a globally leading precision medicine center dedicated to the research and development of immunotherapies and stem cell technologies, particularly CAR-T therapy. Lu Daopei Medical is a top-tier private specialized hospital for critical care in China.Hematology and oncology represent the frontier and mainstream track for medical technology R&D and therapeutic services. Following the completion of its Series B financing led by Temasek and Investcorp, an international sovereign wealth fund, the smooth and rapid closure of the Series B+ round demonstrates strong investor confidence. As a strategic partner of Lu Daopei Medical Group, Pudao Medical is honored and delighted to continue making substantial additional investments in this round, building upon our earlier significant investment that has already yielded industry-leading returns.As a long-term professional investor focused on the healthcare sector, Pudao Medical firmly believes in the promising prospects and long-term opportunities within China’s healthcare industry. In addition to Lu Daopei Medical, our portfolio includes Sanbo Brain Hospital, a leading private specialized hospital in neurology. Pudao Medical has thus established an initial footprint in core anchor assets within China’s healthcare services sector.We will continue to support companies within the Pudao ecosystem, exemplified by Lu Daopei Medical, in areas such as capital markets, operational enhancement, disciplinary development, and basic research. Our goal is to strengthen Lu Daopei Medical’s leading position as a center for hematology and oncology R&D and treatment in China and globally, thereby benefiting countless patients. This mission aligns with the original intention behind the establishment of Pudao Medical.”

Cao Yue, Chairman of Partner Capital Group, concluded by stating, “Partner Capital first engaged with Lu Daopei Medical as early as 2014, witnessing its growth from a single hospital to the current four hospitals. Indeed, Lu Daopei Medical’s rapid development is unprecedented. By facilitating Lu Daopei Medical’s financing round and also participating in this investment, Partner Capital has demonstrated its strong recognition of and confidence in Lu Daopei Medical Group. Leveraging our capital advisory services and over a decade of industry resources in the healthcare sector, Partner Capital will continue to provide professional investment banking services and comprehensive resource integration support to fuel Lu Daopei Medical’s rapid expansion, striving to help the group achieve its goal of reaching a market valuation of RMB 100 billion.”