China-headquartered cancer therapeutics developer AnHeart Therapeutics has secured $61m in series B funding featuring biological drug group Innovent Biologics, the latest deal in a booming Chinese biopharmaceutical technology investment space.
Healthcare-focused investment manager Octagon Capital Advisors led the round, which included Cenova, Laurion Capital and Sage Partners, taking AnHeart’s overall funding to $100m since it was founded in 2018.
AnHeart is developing clinical-stage precision oncology therapies for difficult-to-treat cancers. The company is headquartered in the southern Chinese city of Hangzhou, with offices in Beijing and Shanghai as well as in New York, United States.
The funding will go towards ramping up phase 2 trials for its lead candidate, Taletrectinib, which is intended for non-small cell lung cancer treatment.
AnHeart co-founder and chief executive Junyuan ‘Jerry’ Wang said: “AnHeart is delighted to partner with this group of top-tier, leading healthcare investors to advance development of our pipeline of precision oncology therapeutics.
“This financing reflects strong support for our platform, people, and comprehensive development strategy.”
Lihua Zheng, co-founder and chief business officer of AnHeart, added: “This strong investment group, comprised of both healthcare specialist funds and a leading biopharma company allows us to accelerate development of our unique pipeline of targeted therapies.
“The funding will also allow us to continue expanding our team of world-class scientists and researchers focused on bringing game-changing cancer therapeutics to improve patients’ lives.”
Chinese state-run news agency Xinhua reported last month that China, especially its Guangdong-Hong Kong-Macao Greater Bay Area (GBA), has massive opportunities in the healthcare technology, community health and wellness spaces.
The paper cited Donald Li, a member of the 13th National Committee of the Chinese People’s Political Consultative Conference and president of the World Organisation of Family Doctors, who said since the onset of the covid-19 crisis, healthtech, biotech and medtech deals have been on the centre stage in the local ecosystem, and GBA offers ample resources for startups to thrive.
“The demand for healthcare services is growing in Asia rapidly, the provider networks in Asia are still developing, and the build-up of the healthcare ecosystem is likely to accelerate,” Li was quoted as saying.
Legend Capital, the China-based venture capital firm formed by conglomerate Legend Holdings, has formed a $300m healthcare fund, having reached a $177m first close last month. Global corporate venturers are bullish about the space.
Japan-listed cosmetics brand Shiseido formed a China-based corporate venturing arm with a wellness component called Shiseido Beauty Innovations Fund in August this year, five months after UK-headquartered pharmaceutical firm AstraZeneca had launched a $338m healthcare investment fund in the country.
The news of AnHeart’s latest oversubscribed round came despite the ongoing US-China trade tensions. The Financial Times reported earlier today that the US would be placing eight more China-headquartered companies on its investment blacklist, Chinese military-industrial complex companies, including the largest Chinese drone producer DJI Technology, having already added artificial intelligence technology developer SenseTime a few days before.
No healthtech or biotech targets were named in the report, but shares in multiple China-based technology companies including those in the sector fell today, according to the Wall Street Journal.
For example, the shares of BeiGene – the China-based cancer treatment developer that went public on the Nasdaq Stock Market in 2016 before later securing a secondary listing on the Hong Kong Stock Exchange two years later – dropped 16% in its Shanghai’s Star Market debut today.
BeiGene is the first company to be triple-listed in New York, Hong Kong and Shanghai, but it could be asked to delist from the US, according to Reuters.
The FT report also accelerated a sell-off in healthcare shares in today’s afternoon trade in mainland China, with the CSI300 Healthcare index dropping 3.2% in contrast with the overall 0.87% plunge. Hong Kong’s counterpart, the HSHCI Hang Seng Healthcare Index, also fell 7.6% in the late afternoon.
