WATERSTONE PHARMACEUTICALS Completes RMB 420 Million Series C Financing to Accelerate Metabolic Disease Polymer Drug Pipeline and Industrial Chain Expansion

On August 30, 2020, Waterstone Pharmaceuticals (Wuhan) Co., Ltd. announced the completion of its RMB 420 million Series C financing round. The round was led by SDIC Poly Investment, with participation from Panxi Capital, YuanBio Venture Capital, Yichang State-owned Capital Integration Fund, and other investors.

Sino-US Waterstone Biopharmaceutical Technology (Wuhan) Co., Ltd. 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 diseases and metabolic disorders. The company possesses a polymer-based innovative drug screening platform, with four innovative drugs expected to enter clinical trials sequentially. Meanwhile, it has established four production lines for polymer drugs, covering intermediates, active pharmaceutical ingredients (APIs), and high-end formulations, becoming the largest local supplier of intermediates to multinational pharmaceutical companies for drugs treating hyperkalemia and hyperphosphatemia in kidney disease.

“Over the past decade, Waterstone Pharmaceuticals has grown from scratch in Wuhan. With the support of investors and local government authorities, and through the concerted efforts of our team, we have gradually established core competencies spanning the entire value chain for polymeric drugs targeting metabolic diseases—particularly kidney diseases—from screening and intermediate process R&D to scaled-up manufacturing,” said Dr. Zhang Faming, Founder and Chairman of Waterstone Pharmaceuticals. “We are delighted that our accumulated R&D achievements have gained recognition from numerous renowned funds. The proceeds from this financing round will be used to expand production capacity of key polymeric active pharmaceutical ingredients (APIs) and accelerate the global clinical development of our innovative drugs, thereby creating sustainable long-term value for our shareholders.”

Waterstone Pharmaceuticals is an outstanding enterprise with a strong innovative DNA and spirit, co-founded by leading biomedical talents returned from overseas and local experts in pharmaceutical production and management. The company’s polymer-based drug innovation platform and process development and manufacturing platform have gained widespread recognition from numerous international pharmaceutical companies. As a strategically emerging industry prioritized for national development, the biomedical sector has long been a focus of SDIC Juli Capital. By leading this round of financing for Waterstone Pharmaceuticals, SDIC Juli Capital is actively responding to the national call and providing substantial support to Hubei’s biomedical enterprises in the post-pandemic era. It is believed that the success of this financing round will significantly accelerate the advancement of the company’s pipeline in polymer-based therapeutics for kidney diseases.

Waterstone Pharmaceuticals has established a fully integrated value chain for polymer-based drugs, spanning from intermediates to active pharmaceutical ingredients (APIs) and advanced formulations. We highly recognize the efficient R&D capabilities and execution demonstrated by the Waterstone team, and sincerely hope that Waterstone will truly become an internationally influential new drug R&D and manufacturing enterprise expanding from China to the world.

We have closely monitored the development of Waterstone Pharmaceuticals since its inception. After a decade of refinement, the Waterstone team has mastered core technologies in polymer-based therapeutics and emerged as the market leader in this niche sector. We are delighted to participate in this round of financing. YuanBio Venture Capital looks forward to seeing the Waterstone team continue to increase investment in innovative drug development, thereby solidifying its leading position in the niche field of polymer-based therapeutics for metabolic diseases.

Waterstone Pharmaceuticals’ team is rooted in Hubei while maintaining a global perspective. The company’s strategic layout in metabolic diseases, spanning from generic drugs to innovative therapeutics, aligns well with the needs of China’s pharmaceutical industry transformation. Notably, despite the impact of the COVID-19 pandemic this year, the company’s ability to swiftly complete this round of financing demonstrates our investors’ high recognition of the team. We hope that following this financing round, the company will enter the fast track for the industrialization of polymer-based drugs and become a leader in this field.