KangLiming Bio Secures RMB 300 Million Series B Funding Led by CDH and IDG Capital to Advance At-Home Colorectal Cancer Screening in China

On April 12, 2019, VCBeat learned that Creative Biosciences announced the completion of its RMB 300 million Series B financing round. This round was led by CDH Investments and IDG Capital, with existing shareholders Chende Capital, Jinhe, and Jinyuan Fund continuing to participate as follow-on investors. It is understood that the proceeds from this financing will be used for the post-launch marketing promotion of the “ColoClear” product and the continued development of its subsequent oncology product pipeline.

 
Creative Biosciences was established in 2015, with its founder being the primary inventor of fecal DNA testing. Since its inception, the company has been dedicated to the research and development, manufacturing, and sales of products for early tumor diagnosis, including the “ColoClear” fecal DNA colorectal cancer test kit. Its flagship product, “ColoClear,” received approval from the National Medical Products Administration (NMPA) and was officially launched on November 20, 2018, becoming the first fecal DNA colorectal cancer test kit approved for marketing in China.

Colorectal cancer, also known as bowel cancer, is currently the third most common malignant tumor in China. In developed regions such as Beijing and Shanghai, it has become the second most prevalent cancer. The five-year survival rate for Stage I colorectal cancer is as high as 95%, whereas for Stage IV disease, it drops to merely 8%. Therefore, early diagnosis of colorectal cancer is crucial for subsequent treatment and prognosis.

Currently, clinical screening for colorectal cancer can be conducted using fecal occult blood testing (FOBT) and colonoscopy. However, FOBT has limited sensitivity and specificity, while colonoscopy faces challenges such as difficult appointment scheduling, the need for bowel preparation with laxatives, prolonged fasting, procedural discomfort, and poor patient experience. These factors, combined with a shortage of endoscopists in China, have resulted in low coverage of colorectal cancer screening. Furthermore, many individuals over the age of 60—a demographic at high risk for colorectal cancer—are often unable to tolerate colonoscopy due to poor general health. Consequently, early clinical diagnosis remains suboptimal. Given the insidious onset of colorectal cancer, many patients are diagnosed at intermediate or advanced stages, thereby missing the optimal window for treatment.

For a long time, both physicians and patients have eagerly awaited an early diagnostic product for colorectal cancer that is convenient to use while offering high detection rates and accuracy. Since the 1970s, the United States has implemented nationwide colorectal cancer screening. Over several decades, this initiative has yielded remarkable results, reducing colorectal cancer mortality by 50%!

Stool DNA testing offers inherent advantages for the detection of intestinal tumors. The stool of patients with intestinal tumors contains abundant cells and cellular components shed from the tumor surface that carry pathological information, which can be interpreted through specialized detection methods.

Creative Biosciences’ “ColoClear” is a colorectal cancer screening tool that accurately detects genetic abnormalities in stool samples. It enables physicians to identify early-stage colorectal lesions, potentially intercepting the disease at an early stage and thereby achieving the goals of prevention and curative treatment. Supported by prospective clinical data from thousands of cases and NMPA-regulated clinical trials involving over a thousand participants, ColoClear’s performance has been widely recognized by industry experts. The detection rate for colorectal cancer is approximately 84%, with an even higher sensitivity for early-stage disease. Users can collect samples at home and return them via SF Express, receiving their test results within seven working days.

It is understood that the United States has included similar products in multiple clinical guidelines and covered them under health insurance, recommending that individuals aged 45 and older undergo screening every 1 to 3 years.
 
“Chang’an Xin” was also selected by the Chinese Society of Biopharmaceutical Technology as one of the “Top Ten Advances in China’s Biopharmaceutical Technology in 2018.” After obtaining the Class III medical device registration certificate for “Chang’an Xin,” Creative Biosciences further solidified its leading position in the fecal DNA testing market. As the only company in the industry to date with a clinically approved product, the company will now embark on extensive market promotion efforts to further widen the gap between itself and competitors. Currently, “Chang’an Xin” has passed price reviews in several provinces and municipalities, with similar pricing approval processes underway in other regions. Mr. Zou Hongzhi, founder of Creative Biosciences, revealed that the current product price is only one-third to one-half that of comparable products in the United States.

“The approval and market launch of the stool DNA test kit for colorectal cancer marks a significant milestone for Creative Biosciences. As a clinician and scientist, I hope our product will help people achieve early diagnosis of colorectal cancer through a completely non-invasive, more convenient, and accurate method, enabling the general public to benefit from it as soon as possible,” stated Zou Hongzhi. “As entrepreneurs and founders, we are also honored to collaborate with leading top-tier investment institutions to enrich and strengthen our product pipeline, promote the adoption of products with substantial social significance, and jointly establish Creative Biosciences as a benchmark enterprise in China’s molecular diagnostics field.”
 
CDH Investments has long maintained close attention to frontier advancements in the oncology sector, identifying high-quality targets and making in-depth strategic investments. “We strongly align with the social pain points regarding cancer prevention and screening highlighted in the Government Work Report, and we support the proposal discussed with academicians to include early screening as a national strategy for cancer prevention,” stated Mr. Wang Lin, Founding Partner of CDH Investments. “We aim to leverage CDH’s resource network, comprehensive layout in the healthcare industry, and post-investment management capabilities to solidify Creative Biosciences’ leading position in China in the early prevention and treatment of colorectal cancer and other malignancies.”

In the view of Dr. Liu Dan, Executive Director of CDH Investments’ Innovation and Growth Fund, Creative Biosciences is a leading target in a high-growth potential niche sector, identified by the CDH VGC healthcare team through in-depth industry research. “Dr. Zou Hongzhi is an outstanding scientist in the industry who successfully developed ColoGuard, the first gene-based diagnostic screening product for colorectal cancer, in the United States.”® Once again, the product “Chang’an Xin,” tailored for the Chinese population, has been successfully developed, representing a Chinese innovation in genetic diagnosis of colorectal cancer. “CDH Investments hopes to continuously promote the translation of scientific and technological achievements in the fields of cancer screening, diagnosis, and treatment,” he stated.
 
Mr. Yang Fei, Partner at IDG Capital, stated, “The current high incidence of colorectal cancer, coupled with the emphasis placed on it by national policies, has made early screening for colorectal cancer a significant market attracting considerable attention from the investment community. IDG Capital is delighted to have invested in Creative Biosciences.” He believes that reliable products are the prerequisite for winning in the marketplace, and the superior performance of “ColoClear” sets it apart from competing products. “We believe Creative Biosciences is a high-tech company with immense potential and will continue to go from strength to strength,” he added.
 
Zou Hongzhi revealed that the company has already established sales teams across China, and these teams will be further expanded in the near future. It is reported that, in addition to its colorectal cancer screening product “Chang’an Xin,” Creative Biosciences is also developing early diagnostic products for tumors such as lung cancer and bladder cancer, and has achieved phased results.

Guangzhou Creative Biosciences Co., Ltd. is a high-tech biotechnology company founded by the research team led by Professor Zou Hongzhi of Sun Yat-sen University. Established in January 2015, the company focuses on the research and development, production, and sales of early tumor diagnostic products, such as the “ColoClear” fecal DNA test kit for colorectal cancer, and provides corresponding testing services. In addition to its headquarters in the Guangzhou High-Tech Industrial Development Zone, the company has established third-party medical testing laboratories in Tianjin, Wuhan, Jinan, and other locations. Currently, the laboratories in Guangzhou and Tianjin have passed acceptance inspections and obtained both the Medical Institution Practice License and the Gene Amplification Testing Permit.
 

CDH Investments, established in 2002, is one of China’s largest alternative asset management firms, with assets under management totaling RMB 120 billion. The firm operates six business segments: private equity, innovation and growth, securities investment, real estate investment, mezzanine capital, and wealth management. It has invested in more than 200 companies, over 60 of which are listed on domestic and international stock exchanges. CDH Investments has nurtured a cohort of industry-leading brands, and its portfolio companies employ more than 1.5 million people, making it a significant driver of economic vitality in China.
 

IDG Capital, founded in Boston, USA, in 1992, is a leading global private equity investment firm. IDG Capital focuses on leading enterprises in sectors such as Technology, Media, and Telecom (TMT), new consumer goods and services, culture and entertainment, healthcare, advanced manufacturing, and clean energy. Its investment scope covers all stages, including start-up, growth, maturity, and mergers and acquisitions. In 1993, IDG Capital became the first foreign investment firm to enter the Chinese market. To date, IDG Capital has invested in more than 750 outstanding companies worldwide, with over 170 of them successfully achieving exit through Initial Public Offerings (IPOs) or Mergers and Acquisitions (M&A) in capital markets in the United States, Europe, Hong Kong, and mainland China.