Hua Medicine Secures $50 Million Series C Financing to Advance Phase II Clinical Trials of HMS5552, a First-in-Class Glucokinase Activator for Type 2 Diabetes

On April 22, 2016, Hua Medicine, a company focused on the research and development of innovative drugs, announced the completion of a $50 million Series C financing round in both US dollars and Chinese renminbi. The round was led by Harvest Investment, with Tonghe Capital as a participating investor, and China Renaissance served as the exclusive financial advisor. It is understood that this financing will help the company complete the Phase II clinical trials of HMS5552, an innovative fourth-generation glucokinase activator for the treatment of type 2 diabetes, accelerate its entry into Phase III clinical studies, and support the development of other new drug candidates and technology projects.

Hua Medicine initiated a 12-week Phase II clinical trial of its diabetes drug HMS5552 in September 2015, with plans to announce the primary results by the end of 2016. Prior to this, the company had completed four Phase I clinical trials.

Dr. Chen Li, CEO of Hua Medicine, told VCBeat: “This round of financing has attracted significant interest from investors, underscoring the growing emphasis on innovative drug R&D in China and demonstrating the high level of professionalism among Chinese investors. Hua Medicine remains committed to its mission of making high-quality medicines accessible to patients in China and around the world as soon as possible.”

About Hua Medicine

Hua Medicine is a leading innovative drug R&D company, focusing on the research, development, and industrialization of novel therapies and products for the treatment of diabetes and central nervous system disorders. The company was co-founded by experienced entrepreneurs in the biopharmaceutical sector and internationally renowned investment institutions. Currently, the company holds two innovative assets worldwide. The most advanced among them is a first-in-class oral medication for the treatment of type 2 diabetes, which is expected to complete Phase II clinical trials in China soon and file its New Drug Application (NDA) in 2018.

Hua Medicine’s strategy is to leverage its robust in-house drug R&D and management capabilities, while introducing advanced overseas technologies and product resources. By adopting an integrated “East-meets-West, collaborative innovation” business model, the company develops, manufactures, and markets innovative products and services in the field of major diseases. Hua Medicine is committed to becoming a key driver in China’s advancement toward becoming a global hub for drug research and development innovation.

More information: www.huamedicine.com

About Harvest Investment

Harvest Investment is the sole direct investment platform for the primary market under Harvest Group, one of China’s largest comprehensive financial services groups. Dr. Zhao Xuejun, President of Harvest Group, adheres to the core philosophy that investment should channel capital resources to the best enterprises, empowering them to drive China’s economic transformation. Guided by the principle of “technology first, entrepreneurs foremost,” Harvest Investment focuses on two key sectors: first, healthcare and medical services, seeking companies that leverage technology to advance the industry; and second, emerging technologies, particularly those related to “Internet Plus.”

For more information: http://www.jsfund.cn/

About Tonghe Capital

Tonghe Capital is a leading domestic venture capital firm with extensive expert resources and a broad network of relationships in China’s life sciences industry. The company comprises an experienced investment team and maintains offices in Shanghai, Suzhou, and Hong Kong. Rooted in China, Tonghe Capital is one of the most active investors in the innovative biopharmaceutical and medical device sectors.

For more information: www.frontlinebioventures.com

About China Renaissance

China Renaissance is a leading financial institution in China serving the new economy. Its business encompasses private financing, initial public offerings (IPOs), mergers and acquisitions (M&A), and securities trading. It manages both RMB and USD funds under Huasheng Capital, committed to providing one-stop financial services—from angel rounds to IPOs, across domestic and international markets—to entrepreneurs in the TMT, healthcare, and consumer sectors.

Headquartered in Beijing, with offices in Shanghai, Hong Kong, and New York, China Renaissance employs over 250 professionals. Since its establishment in 2004, China Renaissance has successfully assisted clients in completing nearly 280 transactions, including initial public offerings (IPOs), mergers and acquisitions (M&A), convertible bond issuances, and private equity financings, with a total transaction value exceeding USD 32 billion. Notably, in 2014, it facilitated JD.com’s IPO, which was the largest U.S. listing by a Chinese company at that time. In 2015, it played a key role in major deals such as Didi Kuaidi’s USD 3 billion financing round, Meituan-Dianping’s record-breaking global O2O sector financing, the merger of Didi and Kuaidi, the merger of 58.com and Ganji.com, and the strategic partnership between Meituan and Dianping.

For more information: http://www.huaxing.com.