IDG, CDH back China cancer testing kits producer

Existing investors CD Capital, Jinhe Capital and Jinyuan Capital also re-upped. Overall, the company has gone through four funding rounds since its founding in 2015, raising RMB400 million.

Creative produces diagnostic kits that allow early screening for colorectal - bowel and colon - and lung cancer. The company's first product is Chang An Xin, which tests for colorectal cancer using the DNA extracted from stool samples. It received approval from China’s National Medical Products Administration last November.

Colorectal cancer is the third most prevalent cancer in China, with 130,000-160,000 people developing the disease every year, according to government statistics. Creative claims its testing kits - which can deliver results within seven days - are a more effective and less painful method of diagnosis and prevention than traditional invasive processes such as colonoscopies.

The company is also working on kits for early diagnosis of lung and bladder cancer. An IPO is already on the agenda, said Hongzhi Zou, the founder of Creative.

PE investment in China's healthcare space has risen substantially in recent years. As much as $9 billion was deployed in 2018, up from $4.7 billion in 2017 and $3.7 billion in 2016, according to AVCJ research. Most of that capital has flowed into biotech start-ups, which accounted for $5 billion of the 2018 total.

 

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• Topics
• Greater China
• Healthcare
• Early-stage
• China
• CDH Investments Management
• healthcare
• IDG Capital Partners