Dongwan Bio: Slashing Production Costs from RMB 130,000 to Under RMB 200 and Accelerating Growth in Synthetic Biology

In 2020, Nanjing Dongwan Biotechnology Co., Ltd. (hereinafter referred to as “Dongwan Biotech”) developed its first batch of filler products using recombinant human collagen as the raw material. To date, it has achieved the remarkable feat of reducing costs from RMB 130,000 to under RMB 200.

“At that time, our calculations showed that the cost of culture medium alone for a single product batch was approximately RMB 130,000,” said Zhang Jian, General Manager of Nanjing Dongwan Biotechnology Co., Ltd. Faced with such prohibitive costs, should the company continue or abandon the effort? After careful deliberation, Nanjing Dongwan Biotechnology resolved to persevere and embarked on a journey to continuously optimize production capacity.

“By feeling our way across the river and daring to tackle the toughest challenges, Dongwan Biotechnology’s persistence has paid off. ‘Currently, the cost of this product line is under RMB 200. As we scale up industrialization and boost production capacity, we are fully confident in continuing to advance the R&D and manufacturing of recombinant human collagen,’ Zhang Jian told VCBeat.”

Nanjing Dongwan Biotechnology Co., Ltd., established in 2014, is a high-tech enterprise specializing in the research, development, and production of raw materials and medical devices. The company has obtained certification for its quality management system for sterile and implantable medical devices from the China Food and Drug Administration (CFDA) and has successfully passed the ISO 13485 system audit and certification.

Dongwan Biotechnology operates a 1,500-square-meter R&D and operations center in the Jiangning High-Tech Zone of Nanjing, holding 55 authorized patents to date, including six invention patents. In the Nanjing Jiangbei New Area, it owns two production and operational buildings featuring over 8,000 square meters of high-standard cleanroom production workshops, equipped with automated production lines for products such as medical dressings, gels, freeze-dried powders, sprays, and surgical instruments.

Dongwan Biotechnology Production Building

Since its establishment, Dongwan Biotechnology has been highly recognized by the Jiangsu Provincial and Nanjing Municipal governments. It has received numerous honors and qualifications, including “Jiangsu Province Specialized, Refined, Differential, and Innovative Enterprise,” “Jiangsu Province Technology-Based Small and Medium-sized Enterprise,” and “Nanjing Engineering Technology Research Center,” and has been named a “Nanjing Gazelle Enterprise” for three consecutive years. In November 2023, Dongwan Biotechnology successfully passed the recertification as a “High-Tech Enterprise.” “This successful recertification further demonstrates our transformation from a manufacturing-oriented company to a high-tech enterprise. This honor is an acknowledgment of our successful transition,” Zhang Jian explained to VCBeat.

Zhang Jian, General Manager of Dongwan Biotechnology, has been employed by the Zhaoyi Group, which is engaged in the research, development, and sales of innovative drugs and high-end medical devices, since graduating from China Pharmaceutical University in 2014. In 2016, Zhaoyi Group acquired the former Dongwan Biotechnology. The new shareholders formally took over operations in 2017, and Zhang Jian began participating in the business and management systems of Dongwan Biotechnology in the same year.

Chairman Zhang JunhuaHolding a Master’s degree in Clinical Medicine and licensed as a practicing clinician, he/she has over 20 years of experience in pioneering and successfully launching ventures within China’s healthcare industry. Previously employed by global pharmaceutical giant Eli Lilly and leading medical device corporation Medtronic, he/she possesses extensive expertise in clinical education and product commercialization.

Chief Scientist Yin HongpingProfessor at China Pharmaceutical University and Expert in the National Ministry of Science and Technology’s Expert Database. He has presided over multiple national- and provincial-level key projects in biology, collaborated with enterprises to lead and complete numerous preclinical research initiatives, and secured multiple clinical trial approvals and new drug certificates for innovative pharmaceuticals. He is primarily responsible for the follow-up R&D projects on recombinant human collagen at Nanjing Dongwan Biotechnology Co., Ltd.

Co-founder Liu YongjunProfessor at China Pharmaceutical University and Visiting MBA Professor at Nanjing University, he possesses extensive expertise in industry forecasting, cross-disciplinary knowledge integration, and pharmaceutical enterprise management. He has a proven track record of successful engagements in strategic planning, organizational transformation, high-tech project applications, and IPO advisory. He is primarily responsible for strategic and human resources planning at Nanjing Dongwan Biotechnology Co., Ltd.

Co-founderalso includesAcademician Xu Hongxing, an academician of the Chinese Academy of Sciences and a nanotechnology scientist.

General Manager Zhang JianServes as an adjunct mentor at the MBA Center of Nanjing University and the Business School of China Pharmaceutical University. Previously held the positions of Deputy General Manager and General Manager at Jointown Zhaoyi Medical Supplies Co., Ltd. Spearheaded strategic planning, organizational structure reform, new project initiation, marketing, and investment and financing activities for Nanjing Dongwan Biotechnology Co., Ltd.

When Nanjing Dongwan Biotechnology Co., Ltd. was just acquired, it had only a few surgical consumable product lines and a relatively small scale. Considering the fierce competition in the surgical instrument and consumables sector and the relatively saturated market, the core team decided after discussion not to continue down this "old path," but to explore a new track with innovation and clear R&D directions.

In 2019, leveraging the team’s technical expertise in synthetic biology and conducting an in-depth analysis of the competitive landscape, the core team positioned its innovation focus on biosynthetic products. “In the Medical Device Classification Catalogue issued by the National Medical Products Administration (NMPA) in 2017, approximately 10 types of medical devices could be developed using collagen as a raw material. Moreover, at that time, there were few domestic enterprises engaged in recombinant collagen, making it still a nascent field with significant market gaps.” Consequently, Nanjing Dongwan Biotechnology Co., Ltd. ultimately anchored its specific niche in the recombinant collagen sector, initiating project establishment, research and development, and production.

Based on accurate assessment of the sector and years of dedicated effort, Nanjing Dongwan Biotechnology Co., Ltd. has emerged as a standout player in the rapidly expanding field of synthetic biology. “When we initially embarked on the R&D of recombinant collagen, we did not anticipate that it would position us within the now-booming synthetic biology sector,” Zhang Jian admitted, describing this development as an “unexpected boon” for the company. As synthetic biology garnered widespread attention from the secondary market, Nanjing Dongwan Biotechnology had already achieved phased milestones in production capacity, laboratory capabilities, and commercial product deployment. This surge in capital interest has provided new momentum and empowerment to the company.

Dongwan Biotechnology has established a technological barrier in this field with its exclusive triple-helix recombinant human collagen technology.Leveraging the exclusivity of host cells and plasmids, along with the high efficiency and specificity of its expression system, Dongwan Biotechnology has developed high-throughput cell lines through extensive screening and employs a unique perfusion fermentation process. This has granted the company exclusivity over key core technologies, positioning it as a global leader in the field of recombinant collagen.Currently, the invention patent for Dongwan Biotechnology’s method of constructing recombinant collagen engineered cell lines has been accepted, and the company is in the process of applying for a patent cluster covering related technologies.

Triple-Helix Recombinant Human Collagen Raw Material

From a spatial structure perspective, most recombinant collagen products developed by other companies exhibit linear or simple structural conformations. In contrast, the recombinant human collagen produced by Nanjing Dongwan Biotechnology Co., Ltd. features a complete, full-length triple-helix structure and is identical in amino acid sequence to endogenous human collagen, thereby offering greater application value from a physiological standpoint.

Currently, third-party authoritative institutions have conducted professional evaluations of it from dimensions such as molecular weight and self-assembly capability. Notably,Dongwan Biotech’s recombinant human collagen is the only recombinant human collagen among all samples tested by the National Institutes for Food and Drug Control (NIFDC) that has been confirmed to possess a full-length triple-helix structure.

Authoritative Certification Results of Dongwan Biotechnology's Recombinant Human Collagen by Third-Party Institutions

Leveraging its proprietary biotechnology R&D platform, Dongwan Biotechnology has established an integrated industrial chain encompassing research and development, manufacturing, and marketing in the healthcare sector, with simultaneous strategic layouts in both innovative medical care and consumer healthcare.

Currently, Nanjing Dongwan Biotechnology Co., Ltd. has obtained approval for five recombinant human collagen products, covering the field of superficial repair of skin and mucous membranes. Products such as medical recombinant collagen bio-repair dressings, medical recombinant collagen gynecological gel, and medical recombinant collagen oral care solution remain in continuous production and sales, with sales revenue reaching RMB 83 million in 2022. In addition, Nanjing Dongwan Biotechnology will continue to develop functional care products, formulating specialized care regimens for post-medical aesthetic procedures and the daily repair of skin and mucous membranes.

Dongwan Biotech Class II Medical Device Product Collection

Nanjing Dongwan Biotechnology Co., Ltd. has established three core business development directions, with recombinant human collagen as its foundational raw material.

First, establish a presence in the field of innovative medical devices to achieve the replacement of animal-derived collagen with recombinant human collagen.“Globally, nearly 50 innovative medical devices using collagen as a raw material have been submitted for regulatory approval, with the majority relying on animal-derived collagen as their primary ingredient.” Animal-derived collagen carries risks such as zoonotic disease transmission, immune rejection from xenogeneic proteins, and allergic reactions. In contrast, Nanjing Dongwan Biotechnology Co., Ltd. utilizes synthetic biology and fermentation technology to produce recombinant human collagen with a triple-helix structure, thereby avoiding these risks. Leveraging its proprietary raw materials, Nanjing Dongwan Biotechnology continues to develop innovative medical devices, including cartilage fillers, implantable lenses for myopia correction, artificial skin, and artificial blood vessels. These innovations address the limitations of existing clinical treatments, fill gaps in the domestic market, and achieve import substitution.

Second, establish a presence in the consumer sector, with applications in functional skincare products, health supplements, and related areas.Compared with animal-derived collagen, recombinant human collagen offers greater advantages in terms of cost reduction potential, purification processes, environmental protection, supply lead time, and stability. Therefore, collaborating with partners in the ecosystem to achieve substitution of animal-derived collagen will be one of Dongwan Biotechnology’s key business priorities.

Third, as industrialization scales up and raw material costs gradually decrease,Directly supply recombinant human collagen raw materials to expand their scope and fields of application.

Building on these three core pillars, Nanjing Dongwan Biotechnology Co., Ltd. has integrated its B2B professional healthcare institution operations with its B2C mass consumer business. The B2B segment primarily focuses on innovative medical devices, serving public and private hospitals, while the B2C segment targets the consumer healthcare market, allowing customers to purchase products directly through various platforms.

Regarding the future development of the recombinant collagen sector, Zhang Jian stated that the current market maturity is still insufficient. However, with more industry players entering the field and sustained capital interest, he believes this sector will continue to thrive over the next five years.

In light of this assessment, Nanjing Dongwan Biotechnology Co., Ltd.’s short-term plan will focus on strengthening the foundation of recombinant human collagen raw materials, establishing an industrialization base, and optimizing production capacity, thereby advancing its three key business areas in a coordinated manner. In the long term, the company is committed to addressing industry pain points in the field of recombinant collagen and expanding application scenarios for raw materials, while simultaneously developing various types of collagen to enable rapid industrialization as needed.

Dongwan Biotechnology R&D Center

Currently, Dongwan Biotechnology has completed nearly RMB 40 million in Series A financing and technical collaborations, primarily to fund subsequent R&D efforts in recombinant human collagen and the development of innovative medical devices.

The global collagen industry is experiencing steady growth. According to Frost & Sullivan’s forecasts, by 2026, the market share of collagen-based professional skincare products will surpass that of hyaluronic acid, with a compound annual growth rate (CAGR) of 52.6%. By 2027, the overall market size of China’s collagen industry is projected to reach RMB 173.8 billion, among which the market size for non-animal-derived collagen products will amount to RMB 108.3 billion, accounting for 62.3%.

In this sector, we await with anticipation the new achievements that Nanjing Dongwan Biotechnology Co., Ltd. will create.