Fountain Medical Secures $62 Million Series D Financing to Enhance Global CRO Capabilities

VCBeat (WeChat ID: vcbeat) learned from foreign media reports that on October 25, 2019, innovative drug development company Fountain Medical announced the completion of a $62 million Series D financing round. The round was led by Goldman Sachs, with participation from Lilly Asia Ventures.

Since its establishment in 2007, Fountain Medical has completed Series A, B, and C financing rounds, including investments from prominent venture capital firms such as DFJ DragonFund and Lilly Asia Ventures.

This round of financing will be used to fund Fountain Medical in achieving its short-term growth objectives, namely further strengthening its global healthcare service capabilities.

Fountain Medical, established in 2006, is an innovative drug development company. The company has been committed to providing high-quality services compliant with ICH standards and developing innovative drugs. With over 1,700 employees, the company maintains offices in 55 cities worldwide and operates major delivery centers in the United States, Europe, Japan, India, and the Philippines. Its service offerings include clinical operations, biostatistical analysis, regulatory affairs, pharmacovigilance, medical affairs, and third-party audits.

As global biopharmaceutical, medical device, and consumer healthcare companies continue to invest in new therapies and expand into new markets, novel treatment modalities have ushered in a new era for research and development (R&D). Meanwhile, many enterprises still face challenges such as low success rates, prolonged R&D cycles, rising costs, and diminishing returns on investment. To enhance efficiency and streamline costs, a growing number of these companies are outsourcing their R&D activities to Contract Research Organizations (“CROs”). Since China joined the International Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use (ICH) in 2017 and became the world’s second-largest prescription drug market, multinational corporations have been actively competing to meet the country’s therapeutic needs. Supported by favorable regulatory policies, domestic pharmaceutical developers are also prioritizing innovative therapies. Today, China’s CRO industry is growing faster than that of other regions worldwide, making global integration an inevitable trend.

Dr. Dan Zhang, Co-Founder and Executive Chairman of Fountain Medical, stated, “The Series D financing round, led by Goldman Sachs, enables Fountain Medical to expand and enhance the services we provide to our existing global clients, and to better meet the needs of Chinese pharmaceutical companies with global ambitions as well as multinational corporations with aspirations in China.”

Stephanie Hui, Managing Director and Co-Head of Asia Pacific at Goldman Sachs Group, stated, “We are optimistic about the growth prospects of the CRO industry, particularly in China. As a leading CRO, Fountain Medical has established an excellent platform that combines international expertise with local services. The company boasts a team with diverse backgrounds and deep expertise in key functional areas, enabling it to provide one-stop solutions for clients. We look forward to working closely with management through this investment to further enhance the quality of existing operations, attract top-tier talent, and launch new strategic initiatives.”

Goldman Sachs Group, Inc. (Goldman Sachs) is an American multinational investment bank and financial services company founded in 1869, with its headquarters located in Manhattan, New York City. Goldman Sachs provides services including investment management, securities trading, asset management, prime brokerage, and securities underwriting, and is one of the world’s most renowned investment institutions. It also serves as a primary dealer for U.S. Treasury securities. Additionally, Goldman Sachs owns a direct bank, Goldman Sachs Bank USA.

Lilly Asia Ventures, established in 2008, focuses on equity investments in the biopharmaceuticals, biotechnology, medical devices, healthcare services, and animal health sectors across Asia, particularly in China. It is also the earliest industry fund in China established by a multinational pharmaceutical company. Lilly Asia Ventures currently manages three U.S. dollar-denominated funds and two RMB-denominated funds. One of the primary investors in its U.S. dollar funds is Eli Lilly and Company, a globally renowned pharmaceutical company with a 138-year history dedicated to innovative drug research and development.

(Compiled by Wang Fang)