China's Most Promising Medical Innovators from the Nobel Laureate Medical Investment Summit File for IPO

On November 7, 2016, the Nobel Prize Medicine Summit Investment and Financing Forum and Project Roadshow was held in Beijing. Nearly one hundred investment institutions from the pharmaceutical and broader health sectors, active both domestically and internationally, convened to evaluate multiple projects presented at the roadshow.

According to VCBeat (WeChat ID: vcbeat), the event is hosted by the Shino Medical Exchange Center and organized by Shino Capital. Focusing on cutting-edge topics in international pharmaceuticals, it places particular emphasis on academic discussions and technological applications in key disciplines within precision medicine. It extensively explores new opportunities and trends in the biomedical industry under the new normal of innovation and entrepreneurship, comprehensively investigating the integrated innovative development of industry, finance, and research in the biomedical sector from multiple dimensions and hotspots, including scientific innovation, technology transfer, industrial upgrading, and interpretation of new policies.

The projects featured in the roadshow spanned multiple fields, including health monitoring devices, biopharmaceuticals, cancer prevention and treatment, and rehabilitation robotics. We have placed particular emphasis on select projects among them, as they hold the potential to emerge as the next wave of unicorns in the pharmaceutical and healthcare industry.

Headquartered in Changping District, Beijing, Hesheng Gene is one of the first biotechnology companies in China dedicated to applying synthetic biology in scientific research and pharmaceutical healthcare. Its key areas of focus include the Gene Mountain gene component (plasmid) sharing platform, high-end biological reagents, synthetic biology services, and clinical therapeutics based on synthetic biology.

The Hesheng Gene team hails from prestigious research institutions and key universities, including the Chinese Academy of Sciences, Tsinghua University, Zhejiang University, and Peking Union Medical College Hospital, boasting a strong professional background.

The broader context is that synthetic biology, an emerging interdisciplinary field that has developed since the beginning of this century, is based on our understanding of the principles of life. It employs engineering principles to design, synthesize, or modify biological molecules such as DNA through artificial means, thereby constructing and optimizing biological systems capable of processing information, manufacturing materials, producing energy, providing food, and improving human health and the environment. It has become one of the most prominent frontier disciplines in the life sciences.

The primary research focus of Huayang Compound is on traditional Chinese medicine (TCM) for cancer treatment. Currently, SV "Huayang Compound," a novel anti-lung cancer drug, is undergoing Phase III clinical trials in the United States and Taiwan. Three additional anticancer drug candidates are preparing to enter Phase I clinical trials. Meanwhile, SV "Huayang Compound," an immune-boosting health supplement, has been launched and is being sold in the U.S. and Taiwan. In mainland China, an intention agreement has been reached with a well-known publicly listed TCM company for exclusive distribution rights.

In terms of clinical manifestations, SV "Huayang Compound Formula" has also demonstrated excellent anti-cancer efficacy. According to experimental data, the median survival time of patients increased significantly from 4–6 months (control group) to 15–33.5 months, representing an improvement factor of more than 2.5 times. The one-year survival rate rose from below 20% (control group) to over 70%, reflecting a more than threefold enhancement, with a tumor growth inhibition immune response rate of 74%.

Yikang Medical was founded by He Peng, a medical doctoral candidate from Peking University Health Science Center. Its flagship product is the Yikang Medical Assistant app. As a patient escort service provider, Yikang Medical Assistant integrates licensed healthcare professionals to deliver one-stop medical services for patients, including medical consultation, agency services, and health management.

The Yikang Medical App also serves individual consumers. The platform acquires customers from dozens of B-side enterprises, including PetroChina and Meinian Onehealth, and integrates over 100 medical service providers to offer services such as surgical bed reservations, domestic consultations, private physicians, and medical insurance, thereby enhancing its service chain.

According to its official data, since its launch in June 2015, it has secured tens of millions in financing, generated a GMV of over RMB 80 million and revenue of more than RMB 20 million, and served over 200 B-end clients.

Jintaike Company was established in 2009. Starting from the initial research and development of manual dental implants, it has grown into a Class III medical device manufacturer with an annual production capacity of 500,000 dental implants. The company also operates a production line capable of annually producing 500,000 3D-fabricated zirconia porcelain crowns. Additionally, it owns seven dental clinics specializing in dental implants, providing implant training and clinical implantation services.

According to its official website, Jintaike possesses a production facility spanning nearly 2,000 square meters, which includes a 400-square-meter GMP clean workshop with Class 100,000 cleanliness, a Class 10,000 sterile testing laboratory, and advanced precision CNC machining equipment for small and medium-sized components along with related supporting facilities imported from Japan and Germany. The company has established a production line with an annual capacity of 200,000 dental implants. In terms of research and development, in addition to holding several invention and utility model patents, Jintaike has established long-term collaborative mechanisms with research institutions such as Harvard University and the University of Washington in the United States, as well as West China Medical Center and Shandong University in China. These partnerships focus on the joint development of next-generation bioactive dental implants, other implantable devices, and artificial joints.

Beijing Beixin Deshi was established in 2006, with its core business focused on internet-based medical information management systems. The company currently offers a range of medical information management and consumer-facing health management software products, including “365 Health Steward,” “Lingxin Health Gas Station,” “365 Alarm Clock,” chronic disease management, and general health management solutions.

By integrating hospital resources with personal health management needs, Beixin Deshi has developed a range of products designed to address the shortcomings of traditional public health models, namely insufficient investment and poor user experience. Currently, Beixin Deshi has established collaborations with multiple local governments and large medical institutions to jointly build full-cycle health service platforms and resident health record databases.

In December 2014, Beixin Deshi listed on the National Equities Exchange and Quotations (NEEQ). Currently, its total share capital stands at 26 million shares, with 14.71 million shares in circulation, resulting in a total market capitalization of RMB 278 million. According to its 2016 semi-annual report, as of June 30, the company’s main business revenue was RMB 27.84 million, with a net profit of RMB 1.52 million.

In addition, Beixin Deshi disclosed that its projected revenue for 2016 was RMB 80 million (35% of which has been achieved to date). In 2017, the company plans to transfer to the Innovation Tier, acquire five traditional Chinese medicine hospitals, and develop 120 Lingxin Community Health Service Stations, with a projected revenue of RMB 150 million.

Shanghai Lidi Biotechnology Co., Ltd. (hereinafter referred to as “Shanghai Lidi”) is dedicated to translational oncology and precision cancer medicine research, assisting pharmaceutical companies in the efficient development and screening of new drugs, thereby providing theoretical basis and guidance for clinicians in therapeutic decision-making and offering personalized treatment options for patients.

Lidi Biology operates two subsidiaries: Shanghai Liwen and Xi’an Lidi. Shanghai Liwen is an independent third-party medical diagnostic service provider specializing in molecular diagnostics. It offers professional molecular biology, histopathology, and molecular pathology testing services for clinical use, providing specialized testing and comprehensive evaluation solutions for early tumor diagnosis, selection of personalized treatment regimens, efficacy monitoring, prognosis assessment, and recurrence surveillance. The primary research focus of Xi’an Lidi is to identify and characterize patient responses to anti-tumor drugs, translate laboratory findings into clinical therapeutic applications, guide clinical medication practices, and deliver personalized medical services to patients.

In mid-August this year, Lidi Biotech was listed on the National Equities Exchange and Quotations (NEEQ). The disclosed financial documents showed that its main business revenue in the first half of this year was 3.71 million yuan.

According to statistics from the National Health and Family Planning Commission, of the 2 million new stroke patients in China each year, fewer than one-fifth receive scientific rehabilitation treatment. Over 80% of stroke patients lose hope for recovery. Furthermore, the number of stroke patients is projected to reach 32 million by 2030. The rehabilitation robots launched by the company hold immense market potential, with the potential to achieve a market share exceeding 50%.

Due to the significant challenges in hand rehabilitation for stroke patients, many companies struggle to develop effective rehabilitation devices. Ruihan Medical’s rehabilitation robot, launched after years of research and development, has achieved an overall efficacy rate of 80%.

The Ruihan Type I Rehabilitation Robot, developed and manufactured by the company, is currently scarce in the market and offers advantages such as high safety, effective rehabilitation outcomes, and low treatment costs. Furthermore, the company’s product targets hand rehabilitation for stroke patients, a segment that remains largely a blue ocean in the domestic Chinese market. Operating under a business model combining direct sales and leasing, the product is currently in the prototype development and production phase. The company plans to raise RMB 10 million in exchange for a 10% equity stake.

Leveraging single-stranded mRNA technology, we aim to address 80% of diseases caused by proteins that are difficult to treat with existing therapies, including cancer, infectious diseases, and cardiac and renal disorders. In traditional approaches, the in vitro production of therapeutic proteins and vaccine epitopes entails considerable complexity and high costs. mRNA technology fundamentally resolves this pain point and is poised to have a profound impact on the entire pharmaceutical industry. When combined with precision sequencing, it will facilitate the realization of truly precise, personalized cancer therapy.

Note: VCBeat (WeChat ID: vcbeat) has been following up with and publishing in-depth reports on the outstanding healthcare startups that participated in this roadshow. Stay tuned!