Chengdu HitGen Raises RMB 250 Million Series B Led by CDH Investments to Empower Its Giant New Drug 'Seed Library'

VCBeat (WeChat ID: vcbeat) learned on May 28 that HitGen Inc. announced the completion of its Series B financing round, raising RMB 250 million. The round was led by CDH Investments, with additional investments from its Series A investors. HitGen disclosed that the proceeds will be primarily used to further expand the scale and enhance the technology of its DNA-encoded compound library, as well as to advance the clinical development of its independently developed novel drugs.

Image provided by the company

HitGen is a globally leading, platform-based enterprise focused on new drug discovery, with DNA-encoded compound library synthesis and screening at its core. HitGen possesses the world’s largest and most diverse small-molecule compound library, comprising over 900 libraries and more than 200 billion molecular entities, a scale that continues to expand rapidly.

HitGen ranks first in the industry in both the number of contracted platform clients and the volume of collaborative transactions. It currently partners with more than 50 renowned domestic and international pharmaceutical and biotechnology companies, including eight of the top 20 global multinational pharmaceutical giants such as Johnson & Johnson, Pfizer, Merck & Co., Boehringer Ingelheim, and Takeda Pharmaceutical. HitGen is also the only commercialized DNA-encoded compound library platform in Asia within the field of early-stage drug discovery.

DNA-Encoded Compound Library Technology is a target-based screening platform for small-molecule drug discovery, suitable for early-stage R&D screening of the vast majority of small-molecule drugs. Characterized by its large synthetic molecular diversity, rapid synthesis speed, and high drug-likeness, it has become one of the mainstream and mature technologies for compound screening. Currently, 19 of the top 20 global pharmaceutical companies are utilizing this technology.

HitGen Inc. is a startup founded in 2012 by Dr. Li Jin upon his return to China. Dr. Li, a Fellow of the Royal Society of Chemistry, previously served as Global Director of Compounds at AstraZeneca, a renowned pharmaceutical company, and brings 30 years of experience in drug R&D and management. When asked why HitGen ultimately chose CDH Investments among numerous suitors, Dr. Li Jin, Chairman of HitGen, gladly stated: “CDH Investments has been deeply engaged in the Chinese healthcare market for 15 years, boasting the most professional investment team in the domestic healthcare investment sector and extensive investment experience in the pharmaceutical industry. We believe that CDH’s vision for HitGen’s future development aligns with the management’s expectations for the company. Both parties regard the creation and extension of a robust ecosystem as a critical factor for long-term growth. CDH can provide ongoing support and assistance to HitGen in resource integration, capital consolidation, and AI-driven drug screening.”

Zhang Li, Partner at CDH Innovations and Growth Fund and project lead for the investment, stated: “HitGen represents another major investment by CDH Investments in the biopharmaceutical sector. It is also a niche industry leader with high barriers to entry and significant growth potential, identified by our project team through scanning drug development and screening platforms. We have strong confidence in Dr. Li Jin and his entrepreneurial team. Dr. Li is not only a top-tier scientist in the industry but also possesses an open mindset and exceptional entrepreneurial charisma, along with his unique management philosophy and approach. Over the past year, the CDH project team conducted dozens of visits and exchanges to gain an in-depth understanding of the industry’s development landscape. We believe that HitGen’s business model is distinctive within the industry; it serves not only as an upstream discovery platform for new drug screening but also as a downstream development platform capable of generating original small-molecule new drugs in bulk. Driven by a dual-track model of services and products, the company holds broad prospects for future development and substantial upside potential.”

Photo of Dr. Li Jin, Chairman of HitGen (right), and Wang Lin, Founding Partner of CDH Investments

Mr. Wang Lin, Founding Partner of CDH Investments, stated: “First and foremost, we are delighted to enter into a strategic partnership with HitGen Inc. Currently, China’s new drug R&D sector is experiencing a golden age. On one hand, top-tier scientists like Dr. Li Jin, who previously led R&D efforts at multinational pharmaceutical companies, have returned to China to launch their own ventures, bringing with them globally leading R&D technologies and expertise. On the other hand, strong national support for new drug development has significantly accelerated regulatory approval processes. Furthermore, the Hong Kong Stock Exchange has streamlined listing requirements for biopharmaceutical companies, further accelerating the influx of social capital and driving the advancement of new drug R&D. Once new drugs reach the market, China’s vast pharmaceutical market offers broad prospects.”

Despite being established for less than six years, HitGen, under the leadership of Dr. Li Jin, has acquired the world’s most advanced DNA-encoded compound library and screening technologies, building the largest DNA-encoded compound library globally. The fact that eight of the top 20 multinational pharmaceutical companies have partnered with HitGen serves as strong testament to the full recognition of its technology. In recent years, HitGen has experienced rapid business development, with its revenue doubling and achieving solid profitability—a rare feat for a new drug R&D company. We are delighted that CDH Investments has had the opportunity to invest in HitGen, a globally leading new drug R&D platform company. Moving forward, we will work closely with the HitGen team, leveraging CDH’s extensive resource network, comprehensive healthcare industry layout, and post-investment management capabilities to help the company enter its next stage of development and solidify its global leadership in small-molecule new drug screening platforms.

The life sciences sector has long been a key strategic focus for CDH Innovation and Growth Fund. The team is committed to a dual-pronged approach: on one hand, focusing on important therapeutic areas and projects addressing significant unmet clinical needs; on the other, conducting systematic analysis and industry research across various platform technologies, ranging from small molecules to large molecules, to identify and strategically invest in leading companies within these sub-sectors, thereby supporting the best teams and industry leaders. Guided by this strategy, CDH Investments systematically invested in earlier-stage companies such as Mabwell Therapeutics, SageKin Biopharma, and Kanghong Pharmaceutical. In later stages, the CDH Innovation and Growth Fund has invested in Harbin Pharmaceuticals Group Bio-Pharm Co., Ltd. (Harbin Pharma), a platform enterprise specializing in fully human antibodies, and Airkang Biotechnology, a leading domestic developer of stem cell therapy technologies.

CDH Investments has established stakes in more than 30 companies across the healthcare sector, cultivating its own healthcare ecosystem. It seeks to integrate its portfolio companies into this ecosystem, leveraging it to provide industrial resource support in areas such as strategy, talent, technology, and distribution channels. Each portfolio company serves both as a beneficiary of the ecosystem and a contributor of resources, working together with CDH to build a harmonious and high-quality ecological environment. Amidst the favorable convergence of timing, geographic advantages, and human capital driving domestic innovative drug development in China, this initiative aims to bolster the growth of homegrown innovative pharmaceuticals and meet the Chinese population’s increasing demand for access to novel therapies.