New Year Breakthrough: Ascletis Pharma Secures $100 Million Series B Financing to Advance Innovative Hepatitis B Therapies

On January 3, 2017, as the lingering warmth of the New Year’s Day holiday had yet to fade, Ascletis Pharma, a Chinese innovative drug development company, announced that it had successfully completed a $100 million (RMB 700 million) Series B financing round in recent days. The round was led by Qiao Capital, with participation from new investors including the Qianhai Equity Investment Fund, the Jiang Nanchun Foundation of Focus Media, and the Cai Family Investment Company, as well as existing Series A investors such as Goldman Sachs Group and Tasly Holding Group.

The funds raised in this offering will be primarily used to expand the Company’s product R&D pipeline, enlarge its global R&D team and capabilities, and strengthen the industrialization capacity of its production bases. Fu Wei, CEO of QiaoKang Capital, will join the Board of Directors of Ascletis.

Ascletis is dedicated to the development, manufacturing, and commercialization of innovative drugs in the field of liver diseases, with chronic hepatitis C as one of its primary focus areas. Leveraging two proprietary small-molecule direct-acting antiviral agents, danoprevir (ASC08) and ravidasvir (ASC16), Ascletis provides Chinese patients with hepatitis C with internationally leading triple-therapy and all-oral treatment regimens.

On December 27 last year, Ascletis announced that the marketing application for its first original innovative hepatitis C drug, Danoprevir (ASC08), had passed the comprehensive on-site inspection by the Zhejiang Provincial Food and Drug Administration and been accepted by the China Food and Drug Administration. Danoprevir, supported by the National “Major New Drug Creation” Science and Technology Special Project during the 13th Five-Year Plan period, has recently submitted its new drug marketing application to the China Food and Drug Administration, which has been accepted.

In April last year, Revirdavir (ASC16), another innovative hepatitis C drug developed by Ascletis, was combined with Danoprevir to form China’s first domestically developed, all-oral, interferon-free treatment regimen. In April 2016, Revirdavir was included in the priority review program by the China Food and Drug Administration.

Clinical study results showed that after 12 weeks of treatment, both of Ascletis’s treatment regimens achieved cure rates (SVR12) of over 95% in Chinese patients with HCV genotype 1 infection.

“We sincerely thank our existing investors for their continued trust and support in Ascletis, and we warmly welcome the participation of new investors. We are delighted by the series of achievements attained by Ascletis, particularly the acceptance of the New Drug Application (NDA) for Danoprevir by the China Food and Drug Administration (CFDA), which has garnered increasing recognition from investors,” said Dr. Wu Jinzi, Founder and CEO of Ascletis. “The successful completion of our Series B financing has further strengthened Ascletis. In 2017, we will achieve the historic milestone of launching our first self-developed drug. Building on this foundation, we will accelerate the market launch of our existing products, expedite the expansion of our product pipeline in liver diseases such as hepatitis B, deepen collaborations with leading domestic and international peers, and continuously deliver more effective products to markets in China and around the world.”

“Ascletis is one of China’s premier innovative pharmaceutical companies. Since our initial investment in Ascletis in 2015, we have been delighted to witness a series of remarkable achievements,” said Mr. Fu Wei, CEO of Qiao Capital. “Following this USD 100 million financing round, we believe that Ascletis will evolve beyond being solely an R&D-focused enterprise or a company dedicated exclusively to hepatitis C. Together with new investors, we will support the company and Dr. Wu in achieving their next major transformation.”

Mr. Jin Haitao, Chief Executive Partner of Qianhai Equity Investment Fund, stated, “Qianhai Fund of Funds is an innovative fund that invests in both funds and projects. Biopharmaceuticals is a key area of focus for us and holds the greatest investment value. Ascletis Pharma’s direct-acting antiviral (DAA) drugs for hepatitis C represent the most advanced level of HCV treatment globally, which will benefit numerous hepatitis C patients in China and help advance the country’s efforts in hepatitis C prevention and control. Qianhai Fund of Funds is highly optimistic about Ascletis Pharma’s products and its development potential. We will make every effort to support the company’s growth and its entry into the capital markets.”

Ascletis completed a $55 million Series A financing round in the second half of 2015, led by Qiming Venture Partners and Goldman Sachs.

Ascletis Pharma is a China-based, globally oriented innovative pharmaceutical company dedicated to the research, development, and commercialization of novel therapeutics for cancer and infectious diseases.

Ascletis fully leverages cutting-edge innovations from the United States and Europe, the company team’s extensive technical expertise and experience in the pharmaceutical industry, as well as China’s market advantages. We will achieve rapid near-term growth through product and technology imports, late-stage clinical development, and the commercialization of new drugs tailored to the Chinese market. Meanwhile, we will develop new medicines and ensure the company’s short-term evolution into a sustainable, leading innovative pharmaceutical enterprise through strategies centered on independent R&D, clinical validation, and global collaboration.

C-Bridge Capital was established in 2013 as the China arm of C-Bridge Capital. It is a fund focused on investments in the healthcare and medical industry, primarily targeting late-stage growth and merger-and-acquisition opportunities. The investors of C-Bridge Capital include leading Chinese pharmaceutical groups, internationally renowned sovereign wealth funds, and family foundations.

C-Bridge Capital Partners is dedicated to creating business opportunities, raising capital, and facilitating cross-border transactions for clients in the United States, China, and Israel. Leveraging firsthand experience and extensive networks across these three markets, we help clients design tailored solutions and execute them flawlessly to maximize investment returns and achieve optimal deal outcomes. We stand shoulder to shoulder with our clients, empowering their business growth and success.