Xuanzhu Biopharmaceutical, a China-based drug developer spun off by pharmaceutical group Sihuan Pharmaceutical, collected RMB800m ($116m) in series A funding yesterday.
Chinese government-owned private equity fund manager State Development and Investment Corporation (SDIC) provided the entire amount in return for an 18.6% stake in Xuanzhu.
Founded in 2002, Xuanzhu has built a pipeline of potential treatments for diabetes, metabolic diseases, male reproductive conditions, disorders affecting the digestive system and infectious diseases, through its drug development platform.
The company became a wholly-owned subsidiary of Sihuan in 2012 before being spun off again in 2018 with $169m in registered capital. It intends to collaborate with SDIC on drug development and commercialisation activities, and the series A funding will enable it to establish an equity incentive plan.
Xuanzhu’s pipeline includes a potential treatment for advanced breast cancer that has passed through multiple clinical trials, and a drug candidate for diabetes that is in phase 3 clinical trials.
Leslie Boyd, Xuanzhu’s chief commercial officer, said: “We are very pleased to see that SDIC has full confidence in Xuanzhu Biopharmaceutical’s ability in developing high-value innovative drugs.
“The new investment will make Xuanzhu capable of maintaining a good cooperative relationship with those partners who (have) shared the same values with us for a long time, and always use innovative therapies to continuously improve patients’ lives and medical standards.”
