Completed Series B financing with RMB610.5 Million, Accelerating Global Deployment of Innovative Drug Business
HONG KONG, Jan. 3, 2022 /PRNewswire/ — Sihuan Pharmaceutical Holdings Group Ltd. (the “Company” or “Sihuan
Pharmaceutical“, together with its subsidiaries, collectively referred to as the “Group”; Hong Kong Stock Exchange stock code: 0460) is pleased to announce that, its subsidiary Xuanzhu Biopharmaceutical Co., Ltd.( “Xuanzhu Biopharm”) has completed a Series B financing of RMB610.5 million on December 31, 2021. This round of financing was led by Sunshine Life Insurance Corporation Limited and joined by Efung Capital, Zhongji Investment Co., Ltd., TJ Capital, SDIC Taikang Trust Co., Ltd., Hai Chuang Fund of Funds, BOC Capital, Jinjiang Xuanhong Equity Investment, Shaanxi Financial Holding Group, Hainan Wanxin Private Equity Fund Management, DNV Capital, Huayi Capital and other renowned investment institutions. WinX Capital was the exclusive financial advisor for this financing round.
This is a new round financing following the Series A financing of RMB963 million, a strategic investment led by SDIC China Merchants in August 2020. The participation of heavy-weighted strategic investors in both rounds fully demonstrates Xuanzhu Biopharm’s unceasing innovation capabilities and the forward-looking layout of Sihuan Pharmaceutical which the capital market has recognized. The financing will further accelerate Xuanzhu Biopharm’s vision of “an innovative biopharmaceutical company rooted in China with a global perspective”.
As the first spin-off innovative drug subsidiary of Sihuan Pharmaceutical, Xuanzhu Biopharm will continue to increase investment in the development and global deployment of innovative drug R&D pipelines and persist in enhancing its independent innovation capabilities.
Dr. Che Fengsheng, Chairman and Executive Director of Sihuan Pharmaceutical Group, said: “We are delighted to witness the recognition of the strategic plan of Sihuan Pharmaceutical Group and the prospects of Xuanzhu Biopharm by Sunshine Insurance and many well-known institutions. Sihuan Pharmaceutical adheres to two-wheel drive strategy of independent innovation and research and incubation to cultivate high growth new businesses. We conform to the industry’s development trend, persist on innovation and leadership, and continue to increase the investment in R&D. These initiatives are instituted to realize the innovative transformation and development of Sihuan Pharmaceutical Group and to create a new paradigm of internationalized pharmaceutical technology companies. Sihuan Pharmaceutical has been deeply involved in the pharmaceutical industry for 20 years. The accumulated wealth of experience and industry resources will undoubtedly propel Xuanzhu Biopharm’s transformation from “Biotech” to “Biopharm”. As Xuanzhu Biopharm is gradually integrating R&D, industrialization and commercialization capabilities, Sihuan Pharmaceutical’s support will help Xuanzhu Biopharm land on the capital market in the near future.
Ms. Xu Yanjun, Chairman of Xuanzhu Biopharm, said: “We express our sincere gratitude to the professional investment institutions in this round of financing. Their participation signifies their recognition of and full confidence in the team and R&D capabilities of Xuanzhu Biopharm. As always, Xuanzhu Biopharm will continue to build a novel drug R&D system based on independent and original development. At the same time, we will gradually expand the comprehensive strength encompassing overseas collaboration, industrialization and commercialization, and create a novel, innovative pipeline and portfolio that is differentiated and sustainable. The new investment we gained will help Xuanzhu Biopharm to accelerate its vision of an innovative biopharmaceutical company rooted in China with a global perspective.”
About Xuanzhu Biopharm
Xuanzhu Biopharm is an innovative drug subsidiary of Sihuan Pharmaceutical, a large-scale domestic pharmaceutical and medical aesthetic group. For nearly ten years of establishment and development, Xuanzhu Biopharm has assembled an outstanding team of almost 400 members, led by oversea returnee scientists, with independent R&D capabilities of innovative drugs. Xuanzhu Biopharm has formed a complete R&D system and is geared with full drug development and industrialization capabilities that do not rely on license-in and CROs. The company has the capabilities that enable continuous innovation and output. Backed by the commercialization capabilities of its parent company Sihuan Pharmaceutical, currently, Xuanzhu Biopharm is transforming from “Biotech” to “Biopharm” and is gradually becoming a company with excellent R&D and industrialization capabilities.
From the perspective of R&D platform capabilities, Xuanzhu Biopharm has established two major R&D platforms, namely small molecules and biological macromolecules. The platforms cover small molecules, monoclonal antibodies, bispecific antibodies, fusion proteins, ADC, protein degradation and other fields to enable continuous R&D output capabilities.
In terms of the product pipeline layout, Xuanzhu Biopharm focuses on the R&D of new frontier drugs in the areas, such as oncology, metabolism diseases, anti-infection, and digestion disorders, and is committed to the development of category 1.1 innovative drugs. Among them, the company mainly targets breast cancer, lung cancer and solid tumors in the field of oncology. In the metabolism diseases, diabetes, NASH, etc. are the primary areas. Xuanzhu Biopharm has carried out a broad layout of the main targets of breast cancer and is one of the companies with the most comprehensive coverage of breast cancer domestically.
At present, Xuanzhu Biopharm has more than 25 products under development, two of which are in the NDA stage: Anaprazole sodium, a new drug for the treatment of duodenal ulcer, has its NDA application accepted, and is expected to receive approval for marketing in the second half of this year. Another product, the SGLT-2 inhibitor Janagliflozin for the treatment of diabetes, which has been licensed to Huisheng Biopharmaceutical, will soon have its NDA submitted. Two core products, namely Birociclib, a new generation of CDK4/6 inhibitors, and XZP-3621, which is an ALK/ROS1 dual-target inhibitor, have started phase III clinical trials. In addition, 11 products have entered phase I to III clinical trials concurrently. In the future, it is expected that one to two projects will continue to enter the into clinical development phase each year.
Furthermore, Xuanzhu Biopharm has strengthened its international business development in recent years. The company has licensed the commercialization rights of the biologic drug Pertuzumab biosimilar (KM118) to the strategic investor Beijing Shuanglu Pharmaceutical Co., Ltd. It is expected to enter phase III clinical trial in the near future. In addition, projects in multiple therapeutic areas such as oncology, NASH, and anti-infection are continuing for out-licensing. In 2021, Xuanzhu Biopharm collaborated with a number of domestic and foreign biotech companies. In August, it worked in partnership with HB Therapeutics of the United States to develop a protein degradation platform for first-in-class drugs on undruggable targets by conventional means. In November, it collaborated with SignalChem Lifesciences of Canada and obtained the exclusive rights of a highly selective AXL inhibitor in Greater China. Currently, SignalChem has reached an agreement with Merck overseas and will start a phase II clinical trial in combination with PD-1 (Keytruda). The indications include non-small cell lung cancer (NSCLC) and acute myeloid leukemia (AML).
Overall, Xuanzhu Biopharm has a rich pipeline, with a notable highlight in BioPharm potential. On the one hand, the focuses on major diseases and large markets, alongside the layout of multiple targets for the same disease, can fully cover the treatments of key fields and achieve deep penetration of relevant hospital units. On the other hand, the pipeline layout and coverage of the long, medium and short terms of projects are well positioned. By using highly innovative products and fast commercialized products, the balance of ingenuity and risk is well considered. Moreover, the product pipeline is strong in continuous innovation and can ensure one to two IND applications every year in the future. Furthermore, it has commercialization advantages unmatched by other biotech companies.
Sihuan Pharmaceutical Holdings Group Ltd.
Founded in 2001 and listed on the Main Board of the Hong Kong Stock Exchange Limited in 2010, Sihuan Pharmaceutical Holdings Group Ltd. (“Sihuan Pharmaceutical” or the “Company”, together with its subsidiaries the “Group”) (HKSE: 00460.HK) is an international pharmaceutical company led and driven by both innovation and generic, with an independent and leading independent research and development (“R&D”) technology platform, a rich global product pipeline and a mature and excellent sales system. Focusing on high-growth therapeutic areas such as oncology, metabolic diseases, medical aesthetics, anti-infectives, digestive system, cardiovascular and cerebrovascular, Sihuan Pharmaceutical is building a leading medical aesthetic and biopharmaceutical leader in China with a two-wheel drive strategy of independent innovation and research and incubation to cultivate high growth new businesses.
For more information on Sihuan Pharmaceutical, please visit the company website https://www.sihuanpharm.com/
About Sunshine Life Insurance
Sunshine Life Insurance Corporation Limited was established on December 17, 2007 with a registered capital of RMB18.3425 billion. It is a national professional life insurance company under Sunshine Insurance Group Corporation Limited. Since its establishment, Sunshine Life Insurance has maintained a good momentum of development, and its value has continued to increase. At present, the company has established 33 secondary institutions and nearly 1,000 third- and fourth-level branches to provide customers with life, pension, medical, health, accident and other insurance protection with professional services.
This press release is issued by Porda Havas International Financial Communications Group for and on behalf of Sihuan Pharmaceutical Holdings Group Ltd. For further information, please contact us at [email protected], or as below:
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