Dr. Brain Secures Tens of Millions in Series A Funding to Expand Commercial Network Nationwide

VCBeat (WeChat ID: vcbeat) has learned that on July 5, Shanghai Yirui Medical Technology Co., Ltd. (“Yirui Medical”) announced the completion of its Series A financing round, raising tens of millions of yuan. Beijing Beilu Pharmaceutical Co., Ltd. (“Beilu Pharmaceutical”), a company listed on the ChiNext board, served as the sole investor in this round. With this achievement, Yirui Medical has completed three rounds of financing within two years.

Yiwei Medical, established in 2017, has developed Dr. Brain as its core product—a one-stop artificial intelligence platform for the diagnosis and analysis of central nervous system diseases. Leveraging proprietary cloud computing and deep learning technologies, along with a self-constructed comprehensive brain structural imaging database covering the entire Chinese population across all age groups, Dr. Brain precisely assesses whole-brain structural changes to diagnose central nervous system disorders.

Currently, Dr. Brain Cloud Platform has developed and launched a product matrix targeting various central nervous system (CNS) diseases, including Alzheimer’s disease, Parkinson’s disease, stroke, cerebral hemorrhage, and brain tumors. In the future, it will continue to strengthen its efforts in technology and product research and development, broaden and deepen its technological moat, expand more R&D pipelines, and cover a wider range of CNS diseases.

Wang Xu, Vice Chairman and General Manager of Beilu Pharmaceutical, the investor in this round, stated, “AI in healthcare represents the future direction of development and is a highly promising sector, particularly in imaging and diagnostics, where AI has excellent clinical application scenarios. The company is optimistic about the prospects of medical AI, especially in the field of medical imaging. Beilu Pharmaceutical’s core business revolves around medical imaging and the central nervous system, while Dr. Brain’s application scenarios are precisely focused on these two areas, striving to provide precise whole-brain structural analysis and diagnostic solutions for brain diseases using the world’s most advanced image data analysis technologies and AI algorithms. This creates strong synergies with Beilu Pharmaceutical’s existing business. The investment in Yiwu Medical was made as part of the company’s strategic layout for future development.”

Yiwei Medical is one of the few AI healthcare companies in China focused on central nervous system (CNS) disorders. The CNS is the most advanced and informationally complex organ system in the human body, representing the earliest and most extensive application area for various medical imaging technologies; consequently, imaging data for neurological disorders exhibit higher dimensionality. Furthermore, clinical diagnosis of CNS disorders is exceptionally complex: disease categories (including psychiatric conditions) are highly diverse, pathogenic mechanisms are intricate, and diagnostic classification criteria are frequently updated with significant changes. These factors result in highly specialized clinical diagnostic requirements, substantial technical barriers, and an exceptionally high entry threshold.

Diseases of the central nervous system (CNS), particularly cerebrovascular diseases such as stroke and neurodegenerative disorders like Alzheimer’s disease and Parkinson’s disease, now account for more than 65% of all deaths in China. From 2005 to 2016, the number of deaths attributed to Alzheimer’s disease surged by 57.8%, representing 4.9% of total deaths; its ranking among causes of death rose from eighth in 2005 to fifth in 2016. Meanwhile, cerebrovascular diseases have consistently ranked first in both metrics, with years lived with disability (YLD) due to these conditions increasing by 61.1%[Note 1]. The accelerating aging of the population is imposing a substantial burden on society. Compared with cancer, there remains significant room for improvement in the prevention, control, and treatment of CNS diseases.

Figure: Ranking of Causes of Death in China in 2005 and 2016

Iridium Medical was co-founded in 2017 by Dr. Wang Silun, a neuroimaging scientist, and Mr. Lin Zhaohan, who has a background in finance. With nearly two decades of experience in neurological research, Dr. Wang served as a postdoctoral fellow at the Johns Hopkins University School of Medicine and as a senior researcher at Emory University, publishing over 30 SCI papers on medical imaging. After more than two years of accumulation, the standard Chinese brain imaging database independently built by Dr. Brain is not only the largest in scale but also boasts the highest level of data standardization quality in China, laying a solid foundation for the development of various AI algorithms for central nervous system diseases.

Figure: Brain structural imaging templates established based on imaging data from the Chinese population, covering all age groups from 0 to 90 years

Dr. Brain has assembled a premier team specializing in artificial intelligence algorithms and product development. By leveraging state-of-the-art international algorithmic technologies, we have developed the AI-assisted diagnostic solution with the highest accuracy rate in China. The entire computational process, including complex whole-brain structure segmentation and metric calculation, is completed within 15 minutes. Dr. Brain’s AI has achieved the industry’s highest level of clinical diagnostic accuracy for Alzheimer’s disease, demonstrating high reliability for clinical auxiliary diagnosis.

Figure: Comparison of Dr. Brain AI and Traditional Diagnostic Methods in the AD Diagnostic Window

Dr. Wang Silun, co-founder of Dr. Brain, not only possesses extensive research experience but also served as a frontline physician for many years. His rich clinical background enables the Yique Medical team to maintain high sensitivity to clinical needs. In the product design of Dr. Brain, in addition to aligning with the requirements of medical institutions and physicians, the company consistently prioritizes patient needs, striving to facilitate easy ultra-early screening and risk assessment of brain diseases for patients.

“The Dr. Brain system integrates artificial intelligence algorithms with large-scale imaging data specific to the Chinese population, truly realizing the clinical application of precision medicine in central nervous system diseases,” said Dr. Wang Silun.

Dr. Brain Cloud Platform has been deployed in nearly 100 renowned Grade-A tertiary hospitals across China, providing healthcare institutions with a one-stop AI-assisted diagnostic tool and analytics platform that significantly enhances the accuracy and efficiency of clinical diagnosis. Meanwhile, in collaboration with globally renowned research institutions and universities, it has jointly developed an online training platform for the prevention and rehabilitation of cognitive disorders, striving to create a closed-loop business model integrating diagnosis, treatment, and care.

Furthermore, Dr. Brain has established strategic partnerships with leading domestic health checkup providers, independent imaging centers, and healthcare real estate developers. Leveraging Dr. Brain’s capabilities in early intervention and precise, objective assessment, these collaborations have yielded specialized health screening products and disease screening services. In a pioneering move, Dr. Brain has also partnered with insurance institutions to launch China’s first “Cognitive Deterioration Coverage” product, which utilizes AI-based diagnostic technology as the basis for claims adjudication, thereby breaking the deadlock of lacking dedicated commercial insurance coverage for cognitive disorders.

Regarding this financing round, Dr. Wang Silun, Co-founder and CEO of YIWEI Medical, stated, “Looking ahead, we will continue to deepen our expertise in the niche fields of AI-powered medical imaging and central nervous system disorders. We aim to establish strategic synergies in the medical imaging sector with strategic investors such as Beilu Pharmaceutical and Haier Capital, accelerate product registration processes, enhance our portfolio layout in neurodegenerative diseases, cerebrovascular diseases, and brain tumors, and expedite comprehensive monetization of our products across both B2B and B2C channels.”

Yiwei Medical received angel-round investment in 2017, led by Daotong Investment and followed by Airui Capital and Shanghai Shengxi. In 2018, it secured tens of millions of RMB in Pre-A round funding from Haiyu Tonghui Fund, under Haier Capital.

DaoTong Investment is one of the few domestic investment firms that have strategically and consistently focused on medical AI. In addition to Dr. Brain, it has invested in Landin Medical and Deepwise Healthcare, both of which have grown into industry leaders. Having achieved three successive successes, DaoTong Investment demonstrates a profound understanding of the medical AI industry. Sun Qi, Founding Managing Partner of DaoTong Investment, stated, “The past three years have witnessed the rapid growth of medical AI. This year marks the transition of medical AI from scientific research to comprehensive clinical validation, as well as the beginning of large-scale commercialization.”

Mr. Cai Zhengyuan, CEO of Haier Capital, stated, “Haier Capital has always recognized the substantial application value and market demand within the healthcare sector. Dr. Brain holds a leading position in the niche field of brain medical imaging and demonstrates effective commercialization capabilities in clinical settings. Haier’s resources in the medical ecosystem services sector will empower Dr. Brain to create healthier homes and better lives for users. Haier Capital is pleased to see Beilu Pharmaceutical’s affirmation of Yinao Medical’s progress in the niche field of brain medical imaging. Haier Capital will continue to support Dr. Brain’s future development alongside both existing and new shareholders.”

In the future, Dr. Brain will comprehensively accelerate business collaborations with hospitals, independent imaging centers, health examination institutions, healthcare real estate developers, insurance companies, and government agencies, continuing to advance its commercial monetization process. It will also promote strategic cooperation projects with industry leaders such as Beilu Pharmaceutical, Haier Group, Yimai Yangguang, and Ping An Insurance to accelerate business conversion and expand the layout of Dr. Brain’s commercial outlets across China. Meanwhile, Yiwei Medical will fully participate in Beilu Pharmaceutical’s collaborative initiatives, engaging in the next phase of strategic new drug research and development, thereby contributing new strength to the diagnosis, treatment, and prevention of central nervous system diseases.

Beijing Beilu Pharmaceutical Co., Ltd. was established in September 1992. It is primarily engaged in the research and development, production, and sales of pharmaceutical products. The company is a National High-Tech Enterprise, one of the first companies listed on the ChiNext board (Stock Code: 300016), and a leading enterprise in the contrast media industry. As the first listed company in China to strategically lay out its presence in the field of precision medicine, the company is committed to promoting industrial integration in the areas of medical imaging, precision medicine, and central nervous system disorders, with the mission of focusing on precision diagnostics and pursuing physical and mental well-being, striving to become a top-tier pharmaceutical enterprise in the broader health sector.

Haier Capital was established in 2010 as the investment platform under Haier Financial Holdings. Its business scope covers venture capital, private equity investment, industrial M&A, and government guidance funds. With a seasoned professional team, Haier Capital focuses on key sectors including big health, intelligent manufacturing, new energy/new materials, Internet Plus, and big finance. As of the end of 2017, its assets under management exceeded RMB 15 billion.

Daotong Investment specializes in early-stage investments and mergers and acquisitions (M&A) within the broader healthcare industry, with a particular focus on healthcare services and innovative technologies. The core team members all hail from the medical and health sectors, bringing extensive experience in corporate operations management, investment, and M&A. They possess not only entrepreneurial experience in incubating early-stage companies but also expertise in managing publicly listed companies with market capitalizations exceeding tens of billions of yuan. To date, the team’s cumulative investment and M&A transactions have surpassed RMB 20 billion. Daotong Investment has established a robust investment ecosystem. Leveraging its deep industry expertise and resources, Daotong provides strong post-investment support to its portfolio companies, partnering with like-minded stakeholders to achieve steady and long-term growth.

[Note 1] Reference: "Report on the Burden of Disease in China and Provincial Administrative Regions, 1990–2016"