CF PharmTech Announces $540 Million in Combined Series E and F Financing to Advance Global Inhalation Therapeutics Pipeline

VCBeat has learned that CF PharmTech, Inc. (“CF PharmTech”) has completed a RMB 360 million Series F financing round, following its RMB 630 million Series E round in January. This brings the company’s total fundraising to nearly RMB 1 billion within six months. The Series F equity transaction was led by Boyu Capital and CICC Capital, with participation from prominent institutions including SAIC Hengxu, Jinpu M&A Fund, and Wosheng Investment. Existing shareholders such as Feijun Capital and Yuanming Capital also increased their stakes. China Renaissance served as the exclusive financial advisor for both CF PharmTech’s Series E and Series F financing rounds.

CF PharmTech, Inc. is a comprehensive pharmaceutical company dedicated to providing high-quality respiratory medicines to patients worldwide. Since its inception, the company has focused on the development of therapeutics for global respiratory diseases and has established a complete R&D base for inhalation formulations along with production facilities catering to the global high-end market.

With industrialization and population aging, respiratory diseases have become common worldwide. In China, the number of patients with asthma, chronic obstructive pulmonary disease (COPD), and rhinitis is estimated to exceed 300 million, and this patient population continues to grow rapidly. In July 2019, the State Council issued the "Opinions of the State Council on Implementing the Healthy China Action," which officially positioned COPD as one of the four major diseases severely affecting citizens' health, alongside cancer, cardiovascular diseases, and diabetes, significantly impacting quality of life. Inhaled formulations represent a highly specialized sector with substantial barriers to entry globally and are considered the gold-standard treatment for respiratory diseases.

To ensure that Chinese patients have access to reasonably priced, high-quality products, CF PharmTech has assembled an international team of seasoned experts with extensive experience in the development of respiratory drug delivery technologies. Leveraging their complementary expertise, the company has cultivated a new generation of Chinese professionals specializing in the R&D and manufacturing of inhaled medications since its inception. Building on a solid foundation of existing product development, CF PharmTech has actively expanded into novel drug research and development, striving for sustainable growth and making positive contributions to society.

Commenting on this transaction, Mr. Ding Wei, Chairman of CICC Capital, stated: “CF PharmTech is a leading domestic platform enterprise specializing in inhalation formulations, having achieved significant breakthroughs in multiple aspects of product technology. It possesses one of the few comprehensive multi-dosage-form technology platforms in China and has established a robust commercial layout for its full pipeline of inhalation formulation drugs. Given the large patient population with respiratory diseases in China and the current dominance of multinational pharmaceutical companies, there is substantial growth potential for domestic inhalation formulation enterprises that combine technological excellence with cost advantages, and this trend is becoming increasingly clear. CF PharmTech boasts a comprehensive portfolio of inhalation products and a well-defined commercialization path. While vigorously accelerating import substitution, it is also actively expanding into overseas markets. All of this gives us great confidence in the company’s prospects.”

Chen Penghui, Founding Partner of Boyuan Capital, stated: “The Changfeng Pharmaceutical management team’s excellent strategic vision and execution capabilities have enabled the company to stand out in the field of inhalation preparations. Although various inhalation products are widely used in the treatment of chronic respiratory diseases such as asthma and COPD in Europe and the United States, due to factors such as the history of drug development and technical barriers in China, both the treatment rate and medication usage rate remain low despite the large patient population. Having cultivated the field of inhalation preparations for many years, Changfeng Pharmaceutical has overcome a series of technical challenges, with multiple products now entering late-stage development. The company is about to enter a new period of harvest. We believe that as Changfeng Pharmaceutical launches a series of high-quality, affordably priced inhalation products, these treatments will benefit more patients both domestically and internationally.”

Mr. Li Gang, Partner at China Renaissance Capital, the financial advisor for this transaction, stated, “We are honored to have assisted CF PharmTech in completing two rounds of large-scale financing within six months. CF PharmTech’s strong fundraising capability demonstrates investors’ unique preference for the high-end formulation segment—a niche within the pharmaceutical industry that offers a relatively balanced risk-return profile—amid the current distinctive global market conditions. We remain bullish on CF PharmTech’s accumulated expertise and competitive advantages in this field and believe the company will continue to grow rapidly into a great enterprise.” Mr. Zhang Xiao, Managing Director at China Renaissance Capital, added, “Congratulations to CF PharmTech for successfully closing its Series E and Series F financing rounds against the headwinds of the pandemic. This also represents the largest financing deal in China’s inhalation formulation sector. We believe the successful completion of this financing further solidifies CF PharmTech’s leading position in the field of inhalation formulations.”