CF PharmTech Completes RMB 630 Million Series E Financing to Accelerate Global Development of Respiratory Therapeutics

VCBeat has learned that CF PharmTech, Inc. (“CF PharmTech”) has recently completed its Series E financing round. The round was led by Lianxin Capital, with participation from CR-CP Life Science Fund (CR-CP Life), Yuanchuang Investment, Junxin Capital, CDH Investments, Xiangcheng Financial Holdings, and Langma Peak Investment. Existing shareholders, including Yuanhe Holdings, Suzhou Longmen Venture Capital Fund, GTJA Capital, and CMB International Capital, also increased their stakes. China Renaissance served as the exclusive financial advisor for this financing round.

Previously, CF PharmTech had completed five rounds of financing, with participation from well-known investment institutions such as Kaifeng Venture Capital, Yuanhe Origin, Jinpu Investment, Longmen Investment, Yuanming Capital, SDIC Innovation, and CCB International.

CF PharmTech 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 therapies for global respiratory diseases and has established an advanced R&D base for inhaled formulations along with production facilities targeting premium global markets. Currently, CF PharmTech has more than 20 investigational projects under regulatory review in domestic and international markets, including China, the United States, and Europe, featuring several blockbuster drugs for the treatment of respiratory diseases.

With industrialization and population aging, respiratory diseases have become a common global health concern. According to the 2019 China Pulmonary Health Study published in The Lancet and recent epidemiological surveys by the Asthma Alliance, there are over 50 million asthma patients in China, with only 28.8% diagnosed and a control rate of merely 15.6%. The number of chronic obstructive pulmonary disease (COPD) patients approaches 100 million, with an awareness rate of only 2.6%, and COPD accounts for 9% of deaths. Respiratory diseases have become a key focus of national attention.

In July 2019, the State Council issued the “Opinions of the State Council on Implementing the Healthy China Action” (hereinafter referred to as the “Opinions”), which positioned chronic obstructive pulmonary disease in China at the same level as cancer, cardiovascular diseases, and diabetes. The “Opinions” pointed out that chronic respiratory diseases severely affect patients’ quality of life, and called for the implementation of actions for the prevention and control of chronic respiratory diseases, guiding key populations toward early disease detection, control of risk factors, and prevention of disease onset and progression.

Inhaled drug delivery offers advantages such as rapid onset of action, quick absorption, and minimal side effects. In mature global markets, inhaled formulations are the mainstream therapeutic agents for respiratory diseases, with a relatively stable competitive landscape. Furthermore, due to high barriers to generic replication, few generic versions enter the market after patent expiration, thereby significantly extending the product lifecycle.

According to IQVIA, China’s sales of inhalation products were projected to reach US$2.2 billion in 2019, with a compound annual growth rate (CAGR) of 20% from 2013 to 2019.

In 2008, CF PharmTech assembled an international team of seasoned experts with extensive experience in the development of respiratory drug delivery technologies. For instance, the co-founder of CF PharmTech brings over thirty years of experience in the global biopharmaceutical industry and has led the formulation development and research for some of the most prominent respiratory drugs currently available on the international market.

During its development, CF PharmTech has cultivated a team of professionals specializing in the research, development, and manufacturing of inhaled drugs, serving as the company’s future backbone. Today, CF PharmTech has established a “golden triangle” team composed of core experts and key personnel, responsible for the end-to-end R&D and industrialization of projects.

Currently, CF PharmTech’s pipeline in development covers a comprehensive range of respiratory products, addressing high-demand therapeutic areas such as asthma, chronic obstructive pulmonary disease (COPD), and allergic rhinitis. Meanwhile, the company has established four major research, development, and manufacturing platforms for inhalation formulations: metered-dose inhalers (MDIs), dry powder inhalers (DPIs), nebulized inhalation solutions, and nasal sprays.

Notably, CF PharmTech has begun to actively expand its new drug R&D pipeline while ensuring the development of its existing products, striving for sustainable growth.

Dr. Liang Wenqing, CEO of CF PharmTech, stated, “Our founding team has long adhered to an international pharmaceutical philosophy, assembling multidisciplinary talent to continuously tackle key technological challenges and overcome various obstacles in the development of inhalation formulations. We look forward to bringing high-quality, affordable premium medications to the global market at an early date, ensuring that patients can use CF PharmTech’s products with confidence.”

Commenting on the transaction, Cai Lei, Executive Director of Lianxin Capital, stated: “Healthcare has always been a key focus area for Lianxin Capital. The market for respiratory inhaled formulations represents a rare large-scale opportunity characterized by high barriers to entry and strong growth potential. Through years of strategic planning and dedicated cultivation, CF PharmTech has evolved into an outstanding enterprise in this niche sector, boasting a comprehensive technology platform and a robust product pipeline. We are deeply impressed by the professionalism and pragmatism of CF PharmTech’s core team. We are delighted to partner with the CF PharmTech team, and Lianxin Capital will provide full support in terms of capital and industrial resources to accelerate the market launch of CF PharmTech’s products, thereby benefiting the public.”

Liu Da, Managing Director of the China Resources Zhengda Life Sciences Fund, stated, “CF PharmTech is a highly innovative and pioneering enterprise in the field of respiratory diseases in China. The company fully demonstrates a commitment to specialization and international standards. We believe that as one of the few leading companies in the respiratory disease sector yet to be listed on the capital markets, CF PharmTech possesses significant growth potential. Our fund and its shareholders are committed to supporting CF PharmTech in its listing on the capital markets, international business collaborations, and expansion into global markets.”

Ms. Irene Hong, Partner at China Renaissance, stated as the investment banking advisor for this transaction: “The completion of CF PharmTech’s latest financing will further support the company in expanding its product development and strategic portfolio. As a highly specialized segment within advanced drug formulations, the inhalation therapy sector presents high barriers to entry and significant technical challenges, yet it also offers substantial market potential. We deeply admire the CF PharmTech team for their unwavering scientific dedication over the past decade, and we hope that the high-end inhalation medicines developed and manufactured domestically by CF PharmTech will soon benefit patients in China.”

CF PharmTech, Inc., founded in 2008, is a pharmaceutical company supported by the Wuxi “530 Plan” and dedicated to the domestic and international development of advanced drug formulations. The company’s R&D headquarters is located at the Jiangnan University Science Park in Wuxi, while its production base is situated in the Su-Xiang Cooperative Development Zone in Suzhou. Since its inception, the company has received support from domestic industrial funds and renowned investment institutions, securing investments from Shuanglu Pharmaceutical, Sihong Investment, Galaxy Investment, Kaifeng Venture Capital, Jinfeng Lingheng, Sino-Singapore Venture Capital, Wuhu Ruiye, and Jinpu Health, among others. CF PharmTech focuses on the technological development and product R&D of aerosols, dry powder inhalers, nasal sprays, and nebulizer solutions, having established R&D platforms and production facilities for these dosage forms. The company’s founding mission is to comprehensively provide high-quality inhaled medications to patients in China, while actively participating in high-level competition in the European and American markets for inhaled formulations.