Huagai leads $146m round for China’s HaiHe Biopharma
Shanghai-based cancer drug developer HaiHe Biopharma has raised $146.6 million in a funding round led by Chinese private equity firm Huagai Capital.
Other participants include Hillhouse Capital, Yingke PE, CSPC Pharmaceutical Group, Liansheng Chuangtou, a VC arm under the Chinese Academy of Sciences, and Elite Capital. Huagai was established in 2012 and has over RMB10 billion in assets under management. It focuses on technology, entertainment, and healthcare.
HaiHe was established in 2018 as a result of the merger between its parent, HaiHe Pharmaceutical, and RMX Biopharma, another Chinese oncology drug developer. The company has 10 compounds that have already entered different clinical trial stages and five that are at the preclinical stage.
Among the 10 in clinical trials, two are in phase two and two are in phase three, while the remaining six have passed the proof-of-concept stage (PoC). The phase-three candidates include Liporaxel, a stomach cancer treatment. Previously administered through an injection, HaiHe has created an orally administered version.
“The development of Liporaxel carries huge significance for cancer patients. It has reduced the possible side effects for taking the drug and also saved patients the hassle of having to be prepared for the injection. We will try our best to help the drug hit the market as soon as possible,” said Ruiping Dong, the CEO of HaiHe.
The other core product is a treatment for foot ulcers suffered by diabetic patients. It has entered phase-three trials in Taiwan.
HaiHe has also built a pre-clinical evaluation platform and clinical study system that covers drug R&D procedures, quality studies, formulation development, pharmacological and pharmacodynamics evaluation, biomarker discovery and validation of medical strategies and clinical studies.
PE and VC investment in Chinese biotech companies has risen markedly in the past two years. According to AVCJ Research, $4.2 billion was deployed in the space last year, up from $568 million in 2014. Oncology is one of the verticals that has attracted the most attention due to the nation’s rapidly aging population and a cancer rate that is among the highest in the world.
Recent activity includes a $120 million Series B for Antegene in January, which was led by Boyu Capital and Fountainvest Partners.
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