Where Are Lilly Asia, Fosun Pharma, WuXi AppTec, BGI, Sinopharm, and Tigermed Investing? CVC Investment Continues Steady Growth
Recently, news that Ant Group is set to pursue a simultaneous listing on the STAR Market of the Shanghai Stock Exchange and the Main Board of the Hong Kong Stock Exchange has gone viral on social media. As China’s most active corporate venture capital (CVC) investor, Ant Group could achieve a market capitalization exceeding $200 billion after its IPO, becoming another private-sector giant. This development has also brought heightened attention to the concept of CVC investment, which constitutes Ant Group’s core business model.
CVC (Corporate Venture Capital), or corporate venture capital, is an innovative investment organizational form in which independent investment subsidiaries or investment departments established by non-financial enterprises make minority equity investments in startups on behalf of their parent companies.
Unlike traditional independent venture capital (IVC), corporate venture capital (CVC) is typically funded solely by its parent company and is not constrained by fixed fund terms; its establishment, development, and eventual closure are closely aligned with the parent company’s long-term strategic objectives.
Corporate Venture Capital (CVC) originated in the United States in the 1960s, initially emerging from the pharmaceutical industry, which faced the most pressing innovation cycles. Today, it has become a phenomenal and significant component of the venture capital landscape. In 2015, driven by the national call for “Mass Entrepreneurship and Innovation,” surging domestic entrepreneurial enthusiasm spurred explosive growth in China’s CVC sector. For corporations, CVC serves not only as an effective paradigm for exploring business model boundaries and advancing frontier technologies but also as a crucial innovative mechanism for expanding self-sustaining organizational structures and evolving industry ecosystems.
Typically, corporate venture capital (CVC) investments are initiated when a parent company faces declining innovation capabilities and needs to acquire new information and ideas from external sources. Through such small-scale, diversified investments, the parent company can obtain valuable information and knowledge, thereby returning to the forefront of innovation. According to relevant reports by Zero2IPO Research, CVC can be categorized into four types based on investment objectives and the degree of relevance between the invested projects and the enterprise’s existing businesses: tight strategic investment (advancing current corporate strategy), loose strategic investment (supplementing current corporate strategy), tight financial investment (exploring potential business models), and loose financial investment (providing only financial returns).
In terms of specific implementation vehicles, they can be categorized into four types—corporate direct investment departments, holding investment institutions, incubators/accelerators, and industry alliances—based on differences in fundraising needs, sources of capital, project sourcing, investment decision-making, post-investment management, industrial synergy, incentive mechanisms, and exit options.
Classification of CVC Organizational Forms Data Source: Zero2IPO Research
Rock Health’s “Global Digital Health Investment and Financing Report for the First Half of 2020” shows that global corporate venture capital (CVC) investment in healthcare remained stable through the first half of 2020, with 76 deals completed (equal to the number of CVC deals in 2019, for a total of 143 deals). Among these, healthcare CVC investment surged in May 2020, with 28 deals recorded—150% higher than the average monthly level over the previous 12 months and surpassing the historical high of 26 deals set in November 2017.
Rock Health speculates that corporate venture capital (CVC) firms may view this crisis as an opportunity and accelerate their investments in digital health companies, rather than immediately pausing strategic investment initiatives while waiting for a return to normalcy. They believe that the pandemic will present them with significant opportunities for growth.
In this article, we analyze 413 corporate venture capital (CVC) investments made by six companies: Eli Lilly Asia, Sinopharm Group, Fosun Pharma, BGI Group, WuXi AppTec, and Tigermed. These 413 deals were identified through a cross-reference of non-controlling equity change records and publicly available CVC investment data provided by Qichacha. The earliest investment occurred in 1995; from then until 2014, activity in healthcare CVC investing remained relatively low. Starting in 2015, healthcare CVC investments entered a period of steady growth, peaking in 2018 before declining during the capital winter of 2019 and 2020.
Time Distribution of 413 Medical CVC Investments Data Source: Compiled by VCBeat
In September 2014, the initiative of “Mass Entrepreneurship and Innovation” was proposed at the Davos Forum and quickly gained nationwide traction across China. Entrepreneurial and innovative projects surged in various industries, with the healthcare sector being no exception. The turning point for corporate venture capital (CVC) investment in healthcare around 2015 was closely intertwined with policy-driven structural adjustments, technology-driven product iterations, and talent-driven industrial transformation.
According to Zero2IPO Research’s classification of CVC vehicles, Eli Lilly Asia, Sinopharm, and Fosun Pharma belong to the holding-investment-institution type of healthcare CVCs. They established subsidiaries specifically responsible for venture capital investments or managing investment funds in 2007, 2012, and 2014, respectively. In contrast, Tigermed, WuXi AppTec, and BGI Group are more inclined toward the corporate direct-investment-department type of healthcare CVCs, initiating the establishment or investment in venture capital funds around 2013.
We have found that, as in other industries, corporate venture capital (CVC) investments in healthcare pose significant challenges for both the parent companies and their respective industries. The distinctive feature of healthcare CVC lies in the parent company’s role as a resource provider within the CVC value chain. Beyond capital and brand reputation, it is even more critical to supply industrial chain support elements, thereby helping portfolio companies navigate the arduous process from inception to initial growth. Among the 413 healthcare CVC deals analyzed, the largest number of investees were situated in the midstream segment of the healthcare industry chain, primarily covering new drug R&D, medical devices, in vitro diagnostics (IVD), and medical consumables. In contrast, CVC investments were relatively evenly distributed across upstream raw materials and outsourcing services, as well as downstream online and offline distribution channels.
Distribution of 413 Medical CVC Investments Across the Industry Chain | Data Source: Compiled by VCBeat
Among the 413 medical CVC investments, six parent companies have made the most intensive strategic deployments in new drug R&D. In practice, mature pharmaceutical-focused PE/VC firms often structure their investments in new drug R&D projects around the specific needs of the development process, building an ecosystem within the industry to accelerate R&D progress and prepare for commercialization. As CVC is, to some extent, a subset of PE/VC, establishing a market-driven internal ecosystem represents another key strategic rationale.
Distribution of 413 CVC Investments in the Healthcare Industry Chain | Data Source: Compiled by VCBeat
Specifically, healthcare CVC investment at the current stage exhibits the following characteristics:
1. The industry in which the parent company operates is undergoing transformation, necessitating the construction of a new competitive moat through new products or services;
2. The parent company has a mature core business model and the ability to generate stable revenue;
3. Innovation is vibrant among late-stage industry players, which are becoming a significant force in achieving supply chain completeness;
4. Industry competition is relatively concentrated, and the parent company’s robust core capabilities across the industrial chain are sufficient to accelerate the development of startups.
China is the world’s second-largest pharmaceutical market. In recent years, a wave of new healthcare reform policies has emerged, including reforms to the review and approval system for drugs and medical devices, centralized volume-based procurement of pharmaceuticals, adjustments to the National Reimbursement Drug List, reforms in health insurance payment models, and consistency evaluations for generic drugs. The entire healthcare industry is currently undergoing a transformation, characterized by the exit of legacy, inefficient elements and the gradual acceptance of more efficient new solutions.
Eli Lilly and Company was founded in 1876. According to the 2020 Top 50 Global Pharmaceutical Companies list published by PharmExec, Eli Lilly ranked 14th worldwide in sales revenue for 2019. Prior to the boom in the oncology immunotherapy market, Eli Lilly was among the top 10 multinational pharmaceutical companies globally. Its pharmaceutical products are primarily used for chronic diseases, viral infections, psychiatric disorders, and malignant tumors. The company has launched multiple blockbuster drugs, including insulin, penicillin, cephalosporins, Ceclor, Prozac, Gemzar, and Zyprexa.
Lilly Asia Ventures (LAV), which originated as the venture capital arm of Eli Lilly and Company in 2008, became an independent investment management firm in 2011. As one of the earliest specialized biopharmaceutical funds to deeply cultivate China’s innovation market, LAV is now a leading life sciences and healthcare corporate venture capital (CVC) firm in the industry and serves as a vital source of information and products for Eli Lilly and Company to sustain its innovative capabilities.
According to official website data, Lilly Asia Ventures comprises over 30 professionals with expertise in scientific research, clinical medicine, investment management, and operations. The firm manages assets exceeding USD 1.2 billion equivalent, including five US-dollar funds such as Lilly Asia Ventures Fund I, and four RMB-denominated funds, including the Li An Fund. Adhering to the core investment philosophies of “people-centricity” and “product orientation,” Lilly Asia Ventures invests in or establishes companies capable of developing products that will lead the market in 5–10 years. While respecting and safeguarding the positions of founding teams, the firm provides strategic analysis, executive recruitment, talent networking, business development, and other support.
In terms of investment strategy, Lilly Asia Ventures focuses on Chinese companies engaged in biopharmaceuticals, medical technology, medical devices, and diagnostics, as well as U.S. biotechnology companies with a China strategy, covering financing rounds from seed stage to IPO.
Selected Recent CVC Investment Cases:
Lupeng Pharmaceuticals
Industry: New Drug R&D, Oncology and Infectious Disease Therapeutics
Current Round: Series A+
Company Profile: Established in June 2018, Guangzhou Lupeng Pharmaceuticals is primarily engaged in the research and development of innovative small-molecule drugs for the treatment of major diseases that severely impact human health, such as cancer and hepatitis B. Its core competency lies in small-molecule drug design, with a particular focus on developing therapies against highly challenging targets. The company’s first candidate, LP-108, has entered clinical trials in both China and the United States. Two additional projects with notable design advantages are expected to submit investigational new drug (IND) applications sequentially in the United States and China in the fourth quarter of 2020.
Other investors include: CATHAY Capital, Fengchuan Capital, Taifu Capital, Legend Star, etc.
Abbisko Therapeutics
Industry: New Drug Development, Small-Molecule Targeted Therapeutics
Current Round: Series C
Company Profile: Established in 2016, Abbisko Therapeutics focuses on the research and development of novel oncology drugs, with a particular emphasis on small-molecule targeted therapies and tumor immunotherapies. The company is dedicated to developing first-in-class or best-in-class innovative drugs targeting novel and high-potential drug targets. Its independently developed small-molecule anti-cancer drug candidates, ABSK021 and ABSK011, have received clinical trial approvals in the United States, Mainland China, and Taiwan, China, and clinical trials are progressively underway.
Other Investors: GIC, Temasek, CICC Capital, Qiming Venture Partners, Loyal Valley Capital, CCB Capital, Taifu Capital, Sinopharm Capital, etc.
Geneseeq
Industry: Medical Devices, Precision Oncology
Current Round: Series D
Company Profile: Geneseeq, established in 2013, is primarily engaged in the development, operation, sales, and provision of genetic testing technical services related to cancer therapeutics. It has launched large-panel NGS genetic testing for solid tumors and has established collaborations with over 500 Grade A tertiary hospitals and specialized oncology hospitals across China. It is also the only testing center in Jiangsu Province dual-accredited by the Provincial Development and Reform Commission and the Provincial Department of Science and Technology.
Other partial institutional investors: Ruihua Holdings, E Fund Management, SoftBank China Capital, C&D Emerging Investment, Tianqin Junze, China Reform Holdings Corporation, Longma Peak Venture Capital, Huatai Ruihe, Tianyou Investment, Denuo Capital, etc.
Allist Pharmaceuticals
Industry: New Drug R&D, Anti-tumor Drugs
Current Round: Equity Financing
Company Profile: Established in 2004, Allist Pharmaceuticals is dedicated to the independent research and development of innovative drugs, striving to launch therapeutics that combine clinical efficacy with market viability. The company has established R&D pipelines in major disease areas, including hypertension, diabetes, and oncology, and has completed more than 50 patent applications domestically and internationally, along with multiple new drug applications. In 2012, Allist Pharmaceuticals successfully developed Allisartan Isoproxil, a Class 1.1 antihypertensive drug with the first independent intellectual property rights in China, and obtained the New Drug Certificate.
Other participating investors: Huaxin Century, Shiyu Capital, SDIC Chuanghe, Qianlong Capital, Xinjun Capital, Deyi Capital, Zenith Valley Innovation Capital, Yuansheng Venture Capital, etc.
FangEn Pharma
Industry: New Drug R&D, Clinical CRO
Current Round: Series D
Company Profile: Foresee Pharmaceuticals is an international CRO capable of delivering clinical development services aligned with ICH standards. It provides domestic and global pharmaceutical and medical device clients with high-quality, one-stop clinical research services, including regulatory affairs, medical affairs, clinical operations, data management and biostatistics, pharmacovigilance, and third-party auditing. Foresee Pharmaceuticals is the first CRO in China to offer joint drug development services across multiple regions, including China, the United States, Europe, Japan, Australia, and Taiwan, China.
Other partial institutional investors: Goldman Sachs Group, Vensource Capital, DFJ, Tiantou Capital, etc.
New Horizon Health
Industry: Medical Devices, Early Disease Screening
Current Round: Series E and Beyond
Company Profile: Founded in 2013, New Horizon Health independently developed the “non-invasive multi-target stool FIT-DNA combined test” product, Changweiqing®, which is China’s first early screening product for colorectal cancer. The company holds a market share of over 90% in the field of early colorectal cancer screening.
Other Investors: OrbiMed, Cormorant Asset Management, China Resources Zhengda Life Sciences Fund, Rock Springs Capital, Qiming Venture Partners, SoftBank China Capital, Legend Capital, etc.
Sinopharm Group, the parent company, is China’s largest wholesaler and retailer of pharmaceuticals, healthcare products, and medical devices, as well as a leading supply chain service provider, ranking 169th on the Fortune Global 500 list. Sinopharm Group boasts a comprehensive industry chain covering the entire health sector, including scientific research and development, industrial manufacturing, logistics and distribution, retail chains, healthcare services, engineering technology, professional exhibitions, international operations, and financial investment. Among its more than 1,500 subsidiaries are six listed companies: Sinopharm Group Co., Ltd. (01099.HK), Sinopharm Industry Co., Ltd. (600511.SH), Sinopharm Accord (000028.SZ; 200028.SZ), Tiantan Biological Products Corporation Limited (600161.SH), Shanghai Modern Pharmaceutical Co., Ltd. (600420.SH), and China Traditional Chinese Medicine Holdings Co. Limited (00570.HK).
Sinopharm Capital was established in 2012 as a professional equity investment institution focused on the healthcare sector, initiated by Sinopharm Group. Composed of internal and external investment professionals from Sinopharm Group operating under market-oriented mechanisms, it is dedicated to effectively integrating industry resources and capital strengths both within and outside the group. Sinopharm Capital has sequentially launched three funds, with total assets under management exceeding RMB 6 billion. Its investment scope covers healthcare, pharmaceutical manufacturing and distribution, medical devices and supplies, pharmaceutical R&D, medical services, pharmaceutical services, health and elderly care, biopharmaceuticals, AI technology, IVD, POCT, automation in microbiology, high-throughput testing instruments, medical aesthetics, and CMO bases across the industry chain. The firm invests in projects at various stages, including early-stage R&D, expansion, restructuring, and post-IPO phases.
Selected CVC Investment Cases:
Antek Medical
Industry: Medical Devices, Minimally Invasive Intervention
Current Round: Series B
Company Profile: Antaike Medical, established in 2017, specializes in the research, development, and manufacturing of next-generation minimally invasive interventional medical devices and equipment for atrial fibrillation. Its flagship product, a minimally invasive interventional cryoablation system for atrial fibrillation, has entered clinical trials. The company plans to further expand its pipeline of innovative therapies for atrial fibrillation, pursue CE and FDA certifications, and enter the international market.
Other Investors: Anlong Fund, Dingxin Capital, Tengyun Capital, etc.
PulseFlow Tech
Industry: HealthTech, Artificial Intelligence
Current Round: Series A+
Company Profile: Founded in 2017, PulseFlow Technology provides precise and personalized diagnosis and treatment solutions for cardiovascular and cerebrovascular diseases based on medical big data technology, applied computational simulation technology, and artificial intelligence algorithms. Its products cover intelligent screening, testing, diagnosis, and surgical planning for cardiovascular and cerebrovascular diseases. Among them, the three major products for coronary functional assessment—AccuFFRct, AccuFFRangio, and AccuFFRivus—as well as the AI-based ECG recognition system DeepECG, have been implemented in clinical practice.
Other investors: Dianshi Chuangjian, etc.
Puskang Biotech
Industry: Medical Devices, In Vitro Diagnostics
Current Round: Series B
Company Profile: Founded in 2014, Pushikang specializes in the field of microfluidic coagulation. Leveraging centrifugal microfluidics as its core technology platform and integrating micro-volume whole blood separation capabilities, the company explores medical applications in coagulation (i.e., thrombosis and hemostasis) and chemiluminescent immunoassay. Its product portfolio includes POCT instruments, disc-based microfluidic chips, and supporting diagnostic reagents, which are deployed in various settings such as emergency departments of large hospitals, small and medium-sized hospitals, community primary care facilities, clinical departments, and novel mobile healthcare diagnostic systems.
Other Investors: Yuesheng Capital, Yonghua Investment, etc.
GenFleet Therapeutics
Industry: New Drug R&D, Oncology Immunotherapy
Current Round: Series B
Company Profile: GenFleet Therapeutics, established in 2017, is dedicated to the development of novel global-first drugs. Centered on the biological mechanisms of oncology and immunology as well as clinical translation, the company independently develops original drug candidates that represent international frontiers yet lack clinical validation. Its first independently developed project has been approved for clinical trials.
Other investors include: Sinopharm Capital, Zhongnan Hongyuan, BOCOM International Holdings, NuoSiGe Pharma, Zeyue Capital, CDH Investments, Shenzhen Capital Group, Panlin Capital, and HighLight Capital.
YHLO
Industry: Medical Devices, In Vitro Diagnostics
Current Round: Strategic Financing
Company Profile: Established in 2008, YHLO focuses on the research and development, manufacturing, and sales of in vitro diagnostic (IVD) instruments and reagents. Leveraging technology platforms such as acridinium ester magnetic particle chemiluminescence, novel boat-type enzyme immunoassay, enzyme-linked immunosorbent assay (ELISA), and immunoblotting, YHLO provides supporting reagents and services for disease areas including autoimmune diseases, infections, reproductive health, and diabetes. Notably, based on its acridinium ester direct chemiluminescence technology platform, YHLO has developed a comprehensive range of chemiluminescence immunoassay analyzers and obtained over one hundred reagent registration certificates. Recently, the company launched a fully automated open-track laboratory automation system for clinical laboratories.
Other participating investors: YS Biopharma, Shenzhen Capital Group, SAIF Partners, etc.
Kangliming Biotech
Industry: Medical Devices, In Vitro Diagnostics
Current Round: Strategic Investment
Company Profile: Established in 2015, ConquerMed Biotech specializes in the research and development, manufacturing, and sales of products for early cancer diagnosis, including fecal DNA-based colorectal cancer detection kits. Its flagship product, “ColoClear,” received approval from the National Medical Products Administration (NMPA) in 2018 for commercial launch, becoming China’s first approved fecal DNA-based colorectal cancer detection kit. The company has also achieved significant milestones in the development of early diagnostic products for other cancers, such as lung cancer and bladder cancer.
Other Investors: IDG Capital, Jinyuan Fund, Jinhe Capital, Chende Capital, CDH Investments, Qianhai Fund of Funds, Tasly Capital, Yisheng Capital, etc.
Tigermed, established in 2004, specializes in providing comprehensive contract research organization (CRO) services for the entire clinical trial process in new drug development. With extensive global project management experience, Tigermed boasts industry-leading quality standards and project delivery speed. The company primarily offers clinical trial technical services such as clinical research for pharmaceuticals and medical devices, medical registration, and bioequivalence studies, as well as clinical trial-related services including data management, statistical analysis, site management and patient recruitment, imaging analysis, informatization solutions, and laboratory services.
Although Tigermed has not established a dedicated asset management subsidiary, it has made minority equity investments in innovative biopharmaceutical and medical device startups by initiating and participating in equity investment funds. Data from Qichacha shows that Tigermed wholly established Hangzhou Tigermed Equity Investment Partnership (Limited Partnership) in 2016 and participated in multiple funds managed by Yingke Capital, Beikeshe, Oriental Gao Sheng, and Bohe Angels, with shareholding ratios ranging from 1.1% to 46.67%.
In its corporate venture capital (CVC) investments, Tigermed provides financial support to startups and delivers comprehensive R&D solutions for their ongoing projects. Leveraging its established industry reputation, experience, and capabilities, Tigermed identifies promising early-stage investment opportunities and builds a diversified investment portfolio. While CVC investments generate financial returns, Tigermed also aims to access emerging technologies, acquire potential customers, and seize additional business opportunities as these startups grow and succeed. Currently, investing in innovative drugs has become one of Tigermed’s four core competitive advantages.
Selected CVC Investment Case Studies:
Yahong Medicine
Industry: New Drug R&D, Oncology New Drugs
Current Round: C+
Company Profile: Established in 2010, Yuhong Medical focuses on the global R&D of innovative drugs for urogenital tumors and related diseases. Its pipeline candidate APL-1202 is the world’s first innovative oral drug for non-muscle-invasive bladder cancer to enter registrational clinical development. Another product, Cevira®, a photodynamic drug-device combination for the non-surgical treatment of cervical precancerous lesions, is poised to initiate global Phase III clinical trials.
Other Select Investors: Huayin Jintou, Boyuan Capital, Yingke Capital, Caitai Capital, Yifeng Capital, Guozhong Venture Capital, Yan Yuan Innovation Investment, Longpan Investment, Chongde Hongxin, Jinggong Hongyuan, Phoenix Investment, etc.
Zhongguancun Qihang Fund
MedPoint
Industry: Digital Marketing
Current Round: Unknown
Company Profile: Founded in 2015, Yidian Tong specializes in internet services for the healthcare industry. Leveraging 20 years of experience in healthcare services, the company has established a targeted audience tagging database comprising over 1 million physicians and 500,000 pharmaceutical professionals. By promoting medical academic activities online, Yidian Tong provides efficient integrated digital marketing services to government bodies, medical societies, and associations. Furthermore, through the management and analysis of healthcare big data, the company delivers “Internet+” solutions to domestic and international healthcare, pharmaceutical, and medical device enterprises.
Other Investors: Unknown
Zerun Bio
Industry: Biological Products, Vaccine R&D
Current Round: Acquired
Company Profile: Established in 2003, Zerun Biologics is a subsidiary controlled by Walvax Biotechnology. It specializes in the research, development, and industrialization of novel recombinant human vaccines, with its primary product pipeline focusing on bivalent and nonavalent human papillomavirus (HPV) vaccines.
Other investors include Hillhouse Capital, Yinko Capital, Jinsheng Assets, and Fanglue Dehe.
Purisheng
Industry: Biopharmaceuticals, Clinical CRO
Current Round: Angel Round
Company Profile: Established in 2010, Prisyn provides personalized clinical research solutions for end-to-end medical device product registration and consulting. Our services encompass new drug R&D assessment and consulting, regulatory affairs, clinical trial implementation, data management, statistical analysis, and medical affairs training.
Other investors: Yingke Capital, etc.
Tongli Bio
Industry: New Drug R&D
Current Round: Unknown
Company Profile: Founded in 2012, Tongli Bio specializes in the research and development of therapeutics for tropical diseases. Leveraging its proprietary integrated biocatalytic and chemical synthesis technology, the company has developed levopraziquantel by removing the inactive, bitter-tasting dextraziquantel (which constitutes 50% of conventional praziquantel). This levopraziquantel-based medication is widely used in the treatment of various forms of schistosomiasis and food-borne trematodiasis.
Other investors include: Jingtong Investment, TF CAPITAL, etc.
ZhiZhong Medical
Industry: Chronic Disease Management
Current Round: Unknown
Company Profile: Founded in 2013, Zhizhong Medical is a cloud-based platform for the management of chronic metabolic and cardiovascular diseases. It primarily provides healthcare institutions at all levels with integrated solutions comprising “medical testing devices, data management systems, and patient management platforms.” Its product offerings include Omron blood pressure monitors and Omron blood glucose meters, along with features such as health columns, event information, and product details.
Other Investors: Tianyi Industrial, etc.
WuXi AppTec, founded in 2000, operates a globally leading “integrated, end-to-end” new drug R&D service platform. It is one of the few open platforms in the industry with comprehensive service capabilities across the entire new drug development value chain. Its core businesses cover CRO, chemical drug CDMO/CMO, and cell and gene therapy CDMO/CMO.
The 2019 financial report showed that WuXi AppTec served more than 3,900 global and Chinese clients through its 29 R&D bases and branches worldwide, with the top 20 global pharmaceutical companies accounting for approximately 32.5% of its total revenue. According to F&R data, the number of small pharmaceutical companies globally (with annual sales below $100 million) doubled between 2013 and 2017, increasing their share of the total number of pharmaceutical companies from 69% to 76%. From 2013 to 2017, the proportion of new molecular entity drugs approved by the FDA originating from small pharmaceutical companies rose from 7% to 44%, while WuXi AppTec’s revenue from these “long-tail customers” continued to grow at a high rate.
WuXi AppTec primarily conducts controlling and minority equity external investments by establishing investment management companies (such as Shanghai WuXi AppTec Investment Management Co., Ltd.) and participating in private equity funds (such as those under Mint Angel and Tonghe Yucheng).
Selected CVC Investment Case Studies:
Immunocore
Industry: Cell Therapy
Current Round: Series B
Company Profile: Immunocore is a clinical-stage UK biotechnology company focused on the discovery and development of novel T-cell receptor (TCR)-based therapeutics. With world-leading expertise in engineered T-cell receptors (TCRs), its lead candidate, IMCgp100, has entered clinical trials for patients with metastatic melanoma.
Other Investors: Rock Springs Capital, CCB International, Bill & Melinda Gates Foundation, JDRF T1D Fund, General Atlantic, Hongling Capital, RTW Investments, Lilly Asia Ventures, etc.
Canhelp Genomics
Industry: New Drug R&D, Rare Disease Therapeutics
Current Round: Series D
Company Profile: Canbridge Pharma was established in 2012 and boasts a robust pipeline of rare disease products. Notably, Hunterase®, its therapy for Hunter syndrome, had its New Drug Application submitted to the China National Medical Products Administration (NMPA) in 2019, with market launch planned for 2020. Additionally, Canbridge Pharma has two approved oncology products: Kangpushu® (Kanjinti), which is marketed in mainland China, and Neratinib, which is marketed in the Hong Kong Special Administrative Region.
Other Investors: Hudson Bay Capital Management, Tigermed, RA Capital Management, General Atlantic, Yuanming Fangyuan Fund, Denovo Capital, Longpan Fund, Yuanming Capital, Chongde Hongxin, Zhongling Yanyuan, Qiming Venture Partners, etc.
ViGeneron
Industry: Gene Therapy, Ophthalmology
Current Round: Series A
Company Profile: ViGeneron is a German developer of ophthalmic gene therapy products, specializing in the development of gene therapy technologies based on novel viral vectors. The company’s vgAAV vector platform utilizes AAV capsids produced through innovative manufacturing processes, enabling efficient transduction of target cells and the ability to cross biological barriers. These features allow vgAAV vectors to specifically target cells distributed in the retina, as well as potentially other tissues, including the central nervous system, thereby facilitating minimally invasive intraocular treatments and other applications.
Other Investors: Sequoia Capital, etc.
Daxiang Tech
Industry: New Drug R&D, Biochips
Current Round: Angel Round
Company Profile: Daxiang Technology was founded in 2018 and specializes in the development of "Organ-on-a-Chip" technology. It is one of the few emerging domestic companies that have successfully entered the industrialization phase and are gradually maturing in this field. Currently, its products are primarily applied to anti-tumor drug R&D. The company has developed three organ-chip platforms, on which various models can be constructed to meet the R&D needs of different drugs.
Other Partial Investors: Furong Investment, Jiuyou Capital, etc.
Halodoc
Industry: Internet Healthcare
Current Round: Strategic Investment
Company Profile: Halodoc is an online healthcare platform in Indonesia. Its mobile platform meets the 24-hour consultation needs of patients in 50 cities and provides pharmacy delivery and home laboratory services. Across Indonesia, Halodoc serves approximately 7 million patients per month on average.
Other investors include: Prudential, Allianz X, Bill & Melinda Gates Foundation, UOB Venture Management, Korea Investment Partners, Clermont Group, Go-Jek, NSI Ventures, Blibli, etc.
Jinxin Fertility
Industry: Assisted Reproductive Technology
Current Round: HK IPO
Company Profile: Established in 2016, Jinxin Fertility is a provider of assisted reproductive technology (ART) services. It operates three major ART centers: Chengdu Xinan, Shenzhen Zhongshan, and HRC Fertility in the United States. The company is dedicated to providing comprehensive solutions for infertility in China, offering services related to the diagnosis and treatment of infertility, including fertility assessment, reproductive surgery, male reproductive medicine, traditional Chinese medicine (TCM) for reproduction, recurrent miscarriage management, and assisted reproductive technologies.
Other Investors: Sequoia Capital, Warburg Pincus, China CITIC Bank
BGI Genomics, founded in 1999, is one of the few multi-omics science and technology service providers and medical service operators worldwide with resources spanning the entire industry chain. Its business primarily comprises four segments: reproductive health, tumor prevention and control, infection prevention and control, and multi-omics big data, with the goal of building a closed-loop industrial ecosystem known as the “BGI Ecosystem.”
BGI Group has quietly expanded its footprint across niche sectors—including reproductive health, tumor genetic testing, synthetic biology, consumer-grade genetic testing, bioinformatics analysis, ophthalmic diagnosis and treatment, and metagenomics—by establishing fund management companies (such as Shenzhen BGI Industrial Investment Fund Management Co., Ltd.) and taking equity stakes in investment funds (including those under Sinowood Capital, BGI Win-Win, and Mint Angel). Its portfolio includes investments in UK-based Congenica, Geneseeq Technology, Qinglan Biology, Hungsun Biotechnology, and He Eye Specialist Hospital.
Selected CVC Investment Case Studies:
Zhongjian Yunkang
Industry: Pharmaceutical Distribution, Cold Chain Logistics
Current Round: Strategic Financing
Company Profile: Established in 2018, Zhongjian Yunkang Medical Logistics Platform is a specialized cold-chain logistics service provider. Leveraging technologies such as big data, cloud computing, and crowdsourced logistics, it delivers safe, convenient, professional, and rapid logistics services to enterprises in the medical testing sector.
Other investors: Unknown
Gu'ao Genetics
Industry: Biotechnology, Gene Technology
Current Round: Unknown
Company Profile: Founded in 2016, Guao Genomics focuses on next-generation and third-generation high-throughput sequencing, bioinformatics analysis, interactive analytical reporting, multi-omics knowledge bases, and the research and development of genomic selection breeding platforms. The company provides gene big data analysis and interpretation, as well as the construction of knowledge bases and genomic selection breeding platforms, for public and corporate breeding research institutions.
Other investors: Longding Investment, etc.
GenePlus
Industry: Medical Devices, Precision Oncology
Current Round: Series B
Company Profile: Founded in 2015, Genetron Health focuses on the field of tumor gene testing. It has independently developed core technologies such as ER-seq, mTBI, and mClone, initially establishing a non-invasive, precise, and dynamic ctDNA detection system. The company provides customers with a series of clinical services and products, including precision oncology medication, efficacy monitoring, postoperative recurrence detection, and early screening.
Other partial investors: CDH Investments, Deshang Capital, Rongzhilian, Boyuan Hongsheng Investment, Volcanic Stone Capital, Sinowood Capital, BGI Genomics, etc.
Youxun Medicine
Industry: Gene Sequencing Services
Current Round: Strategic Investment
Company Profile: Founded in 2015, Yoxun Medicine specializes in gene sequencing services for oncology and eugenics. The company is committed to building a comprehensive, integrated testing service technology platform, developing new technologies for high-precision non-invasive screening and diagnosis of monogenic diseases and common pediatric genomic disorders. Its core businesses include large-scale birth defect detection services and the industrial development of precision oncology medicine.
Other investors include: CITIC Guoan Capital, GTJA Investment, and Xianfeng Qiyun.
Genewell
Industry: Gene Sequencing Services
Current Round: Angel Round
Company Profile: Established in 2018, Jingliang Gene specializes in the development and commercialization of reference standards tailored to the genetic characteristics of the Chinese population, leveraging both independent and collaborative R&D models. In the field of tumor gene testing, the company provides regulatory registration support and reference standard materials (qualitative and quantitative, renewable) for platform developers and diagnostic kit manufacturers. Its portfolio of reference standards encompasses DNA, RNA, proteins, cell lines, and formalin-fixed paraffin-embedded (FFPE) tissue sections.
Other Investors: Unknown
Baidao Medical
Industry: MedTech, Intelligent Pathology
Current Round: Series A
Company Profile: Founded in 2018, Baidao Medical is a provider of comprehensive intelligent pathology solutions, dedicated to the standardization, intelligence, and automation of clinical pathology. The company has independently developed a series of products and technical services for clinical pathological testing and diagnosis, offering holistic intelligent pathology solutions to pathologists, research institutions, and new drug development partners.
Other investors include: Juncheng Fund, Taihao Venture Capital, New Swift Biotech, Mint Angel Fund, etc.
Founded in 1995, Fosun Pharma is a leading healthcare industry group in China, with business operations spanning pharmaceutical manufacturing and R&D, medical services, medical devices and diagnostics, as well as pharmaceutical distribution and retail. According to the 2018 Top 100 Chinese Pharmaceutical Enterprises list released by the China National Pharmaceutical Industry Information Center under the Ministry of Industry and Information Technology, Fosun Pharma ranked 7th. Additionally, IQVIA statistics show that in 2019, Fosun Pharma ranked 10th nationwide in sales revenue from prescription drugs used in hospitals. Furthermore, through multiple investments and mergers and acquisitions in hospitals, Fosun Pharma has established a strategic layout for medical services focusing on the Pearl River Delta Greater Bay Area, the Yangtze River Delta, and the Huaihai Economic Zone, integrating specialized and general hospitals. This has positioned the company as one of the industry leaders in private hospital investment, management, and operations.
Fosun Pharma continues to strengthen its “4+3” R&D platform in innovative research and development. The “4” refers to four major platforms: small-molecule innovative drugs, high-value generics, biologics, and cell therapy; the “3” denotes three key systems: in-licensing, deep incubation, and venture capital investment. Through this framework, Fosun Pharma accelerates the enhancement of its innovation capabilities, enriches its product pipeline, and continuously improves its integrated R&D system combining generic and innovative drug development.
Fosun Pharma primarily conducts minority equity outbound investments through investment institutions such as Fosun Pingyao and Fuxing Equity.
Selected CVC Investment Case Studies:
Babytree
Industry: Internet Healthcare
Current Round: Hong Kong Stock Exchange IPO
Company Profile: Founded in 2006, BabyTree is a service platform for families with infants and young children. By developing mobile applications and other products, it provides diverse services to parents who are preparing for pregnancy, are pregnant, or have children aged 0–6 years, facilitating valuable experience sharing and parenting education to meet users’ multi-level childcare needs.
Other investors include: Alibaba, Chenshan Capital, TAL Education Group, Binchuang Investment, Zhaojin Investment, Qianhe Capital, E Fund, Jumei International Holding Ltd., TAL Education Group, CBC Group, SIG Asia Investments, and Matrix Partners China.
Haisco Pharmaceutical
Industry: New Drug R&D, Preclinical CRO
Current Round: Series B
Company Profile: Founded in 2013, Haichuang Pharmaceutical focuses on providing drug R&D services, including chemical synthesis, medicinal chemistry, process development, generic drug process and quality control, and innovative drug research. The company is engaged in the R&D and industrial translation of Class 1.1 innovative drugs for oncology, diabetes, and multiple sclerosis. Its novel prostate cancer drug, HC-1119, has entered global multicenter Phase III clinical trials, while its gout therapeutic candidate is currently undergoing Phase I/II clinical trials.
Other investors include: Lanson Investment, Hengxing Capital, Dingjian New Materials, Silicon Valley Torch, Tongde Capital, Haisco Pharmaceutical, AFFINITIS GROUP CO., LTD., and Yingchuang Dongli, among others.
UDao Sci-Tech Innovation
Industry: Healthcare IT
Current Round: Pre-A
Company Profile: Yudao Kechuang was established in 2013, specializing in the advanced development of chemistry and pharmaceutical bioinformatics technologies. It is committed to providing chemical informatics technical support to researchers and chemical suppliers in the fields of biopharmaceuticals and fine chemicals.
Other investors: Unknown
Glycotest
Industry: Medical Devices, In Vitro Diagnostics
Current Round: Unknown
Company Profile: Glycotest is a New York-based company that develops non-invasive diagnostic tests (methods and corresponding reagents) for early-stage hepatocellular carcinoma (HCC), liver fibrosis, and cholangiocarcinoma.
Other Investors: Unknown
CEC Data
Industry: Medical Big Data
Current Round: Strategic Investment
Company Profile: Established in 2014, CEC Data is a comprehensive electronic hardware and information services provider. It boasts an industrial framework featuring the synergistic development of five major sectors: new displays, information security, integrated circuits, high-tech electronics, and information services. The company possesses a complete industry chain spanning from operating systems, middleware, databases, and security products to application systems.
Other investors: Sequoia Broadband, etc.
Mingyi Zhonghe
Industry: Medical SaaS
Current Round: Series B
Company Profile: Founded in 2015, Mingyi Zhonghe specializes in the research and development of information technology software aimed at enhancing primary care diagnostic and treatment capabilities. It provides targeted solutions for rural grassroots clinics, covering areas such as medical education, healthcare informatics, health insurance data services, pharmaceutical supply chains, and medical collaborations. Its services have reached over 130,000 primary care clinics and village health stations.
Other investors: Yijing Capital, Sinovation Ventures, Tonghe Yucheng, Yuanyi Capital, Dan’en Venture Capital, and Yuanyi Capital.