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In 2022, more than 270 Chinese innovative drug companies will complete financing, and more than 40% will be established in the past three years!

 Last Update: 2023-02-03
 Source: Internet
 Author: User

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In the field of innovative drugs, whether it is the growth of start-ups or the birth of innovative therapies, it is inseparable from the support
of capital.
In the past year, although the financing environment for innovative drugs has suffered a cold snap, many cutting-edge companies have won capital favor
by virtue of their unique advantages in cutting-edge technologies and therapies.

According to incomplete statistics, as of December 30, 2022, at least 270 Chinese innovative drug companies announced the completion of more than 300 financing rounds and nature last year, of which early financing (before Series B, excluding Series B) accounted for about 65%
of the total.
In this article, let's look at these more than 300 financing cases to see what highlights of financing in 2022 have shown? What trends are shown?

At least 270 Chinese innovative drug companies announced last year that they had completed more than 300 early financing cases of different rounds and natures (before Series B, excluding Series B), accounting for about 65% of the total;

Trend 1: Nearly 200 early-stage financing cases, accounting for about 65%

Throughout the financing chain of emerging companies, early-stage investment is relatively
risky.
From our statistical results, early financing is still the most active part of
the investment and financing market in 2022.
Of the more than 300 financing cases we counted, 198 were early-stage financing cases, accounting for about 65%
of the total.
Among them, Series A(+) financing cases were the most, with 75; followed by the angel (+) wheel with 58; Then came the Pre-A round, with 42.

There were 198 early-stage financing cases, accounting for about 65% of the total Series A(+) financing cases were the highest, with 75

Data source: Public information, Medical Guanlan cartography

Combing through the investors of these companies, we found that there are many well-known investment institutions
.
Among them, Sequoia China, Qiming Venture Capital, Eli Lilly Asia Fund, Hillhouse Venture Capital, Legend Capital, Kunlun Capital, Vivo Capital, Temasek, Yuansheng Venture Capital, Huagai Capital, Baidu Venture Capital, etc.
have invested in a number of innovative drug companies last year, and their research areas include stem cell therapy, AAV gene therapy, cell therapy products such as CAR-T/NK, antibody conjugate drugs (ADCs), protein degrader drugs, in situ regeneration of tissues and organs, RNA therapy, radiotherapy, new vaccines, New small molecule drugs and so on
.
It can be seen that "innovation" has become an important criterion
for investment institutions to measure enterprises.

It can be seen that "innovation" has become an important criterion for investment institutions to measure enterprises

In terms of financing amount, there are a number of companies that have raised more than $100 million
in a single round.
For example, Vitereron, which focuses on the development of new drugs for the treatment of aging-related degenerative diseases, completed a $200 million Series B financing; Colombotel, which focuses on the research and development of biotechnology drugs and innovative small molecule drugs, completed a series B financing of 200 million US dollars; Neo-Genesis, a tumor cell immunotherapy product, completed a series B financing of more than US$120 million, and Technolab, a company focusing on the development of new natural fully human antibody drugs
, completed a pre-IPO round of financing of approximately RMB750 million.

Viterillon Colombo, the original biologics Tynomab

Trend 2: More than 40% of companies have been established in the past three years

From the perspective of establishment time, among the 276 companies we counted, 118 companies were established in the past three years (2020-2022), accounting for about 43%; There were 106 companies established between 2015 and 2019, accounting for about 38%; There were 52 companies established in 2014 and before, accounting for about 19%.

In terms of a single year, the largest number of companies established in 2021 was as high as 74
.

There were 118 companies established in the past three years (2020-2022), accounting for about 43%, and the largest number of companies established in 2021, reaching 74

Data source: Public information, Medical Guanlan cartography

It is worth mentioning that more than 20 companies announced the completion of two or more rounds of financing
in 2022.
For example, Gebo Biologics has announced the completion of nearly $50 million in Series A financing and $22 million in Series A+ financing, focusing on the research and development of targeted protein degradation drugs; SkinBiotech has successively announced the completion of nearly 100 million yuan PreA+ round financing and more than 200 million yuan A1 round financing, the company focuses on the development of induced pluripotent stem cell (iPSC) therapy for patients with Parkinson's disease; Blood Ji Biotech has successively announced the completion of a pre-A round of financing of 100 million yuan and a new round of financing with an undisclosed amount, the company focuses on the industrialization of platelet in vitro regeneration; Ijielicco announced the completion of an angel round and a pre-A round of financing, the company is committed to the treatment of multiple diseases using unique epigenetic regulation technology.
.
.
.
.
.
.

More than 20 companies announced the completion of two or more rounds of financing in 2022, Gebo Biotechnology, Shize Biotechnology, and Xueji Biotechnology, Yijielico

In addition, Tianchen Biotechnology, Yinzheng Gene, Yingshi Biotechnology, Junsai Biotechnology, Baikui Rui Biotechnology, Baimai Biotechnology, Junsai Biotechnology, Kaidi Medical, Lingyi Biotechnology, Kangwei Biotechnology, Dannuo Pharmaceutical, etc.
also announced the completion of two rounds of financing
last year.
It can be seen that even in an uncertain environment, enterprises with innovative capabilities and strength can still obtain capital favor
.
As a founding and chief executive officer (CEO) of a cutting-edge company said in an interview with WuXi AppTec's content team in 2022, "the capital winter has indeed brought some impact to the industry, but the core factors that determine whether a company can obtain financing are the capabilities of the company's core team, product innovation and development potential"
.

The capital winter has indeed had a certain impact on the industry, but the core factors that determine whether a company can obtain financing are the ability of the company's core team, product innovation and development potential

Trend 3: New molecular types such as cell and gene therapy are attracting attention

Combing through the research fields of these companies, we found that new molecular therapies such as cell therapy, gene therapy, RNA therapy, targeted protein degradation drugs, and new antibodies have become one of the main research directions of
emerging enterprises.

Among the many cutting-edge therapies, cell therapy has become a new wave
in the field of new drug research and development because of its potential to "cure once" diseases.
This is also confirmed in the financing case in 2022
.
Among the more than 300 financing cases we counted, there were 58 financing events in the field of cell therapy, accounting for nearly 20%.

There were 58 financing events in the cell therapy sector, accounting for nearly 20%

Among them, new cell therapies such as induced pluripotent stem cell (iPSC) therapy, CAR-NK, T cell antigen receptor (TCR)-T cell therapy, tumor infiltrating lymphocyte (TIL) therapy, macrophage therapy, double-negative T cell (DNT cell) therapy, red blood cell therapy and other new cell therapies are booming, which are expected to solve the limitations of CAR-T in disease treatment and benefit more patients
。 It is worth mentioning that some companies are using synthetic immunology technologies such as logic loops and feedback switches to develop intelligently edited NK cell therapies in order to provide patients with more effective and safer precision immunotherapy methods
.

Synthetic immunology technologies such as logic loops and feedback switches are being used to develop intelligently edited NK cell therapies

Another area where these up-and-coming companies are more researching is gene-editing therapy
.
Over the past two decades, gene therapy approaches have made significant advances in the field of clinical treatment, so there are high hopes
.
In our statistics, there are multiple companies that are developing AAV-mediated gene therapies for the treatment of different types of diseases, including ophthalmic diseases, neuromuscular diseases, inherited metabolic diseases, hearing loss, central nervous system diseases, rare diseases, and many more
.
In addition, there are companies that are developing novel gene therapies, including novel gene therapies based on in situ cell transdifferentiation technology, gene editing therapies based on epigenetic regulatory technology, gene therapy drugs targeting telomere mechanisms, next-generation gene therapies based on CRISPR, and so on
.

Gene editing therapy includes ophthalmic diseases, neuromuscular diseases, genetic metabolic diseases, hearing loss, central nervous system diseases, rare diseases, etc.
, new gene therapy based on in situ cell transdifferentiation technology, gene editing therapy based on epigenetic regulation technology, gene therapy drugs targeting telomere mechanism, and next-generation gene therapy based on CRISPR

RNA therapy is another hot direction
that emerging companies are optimistic about.
In recent years, the field of RNA therapy has exploded, with 11 RNA therapies approved by the FDA in the past 5 years alone, which is even more than the total number of previously approved RNA therapies
.
Compared with traditional therapies, RNA therapies can quickly develop targeted therapies
with a high success rate as long as they know the gene sequence of the target target.
In our statistics, more than 10 cutting-edge entrepreneurs in the field of RNA therapy received financing last year, and their research directions include RNAi therapy, mRNA drugs, circular RNA drugs, siRNA drugs, etc.
, covering brain neurological diseases, cardiovascular diseases, ophthalmology, tumors, hereditary diseases, rare diseases and other disease fields
.

In the past 5 years alone, 11 RNA therapies have been approved by the FDA, which is more than the total number of previously approved RNA therapies
.
RNAi therapy, mRNA drugs, circular RNA drugs, siRNA drugs

In addition to the above types of therapies, the research and development direction of these startups covers many other cutting-edge technologies and therapies, including novel small molecule inhibitors, innovative antibody drugs, targeted protein degradation drugs, microbial therapeutics, peptide drugs, radiotherapy, small molecule conjugates, peptide conjugates (PDCs), vaccines, and so on
.
Due to space limitations, this article will not introduce
them all.
It is hoped that with the help of capital, these cutting-edge companies can bring these innovative therapies to market as soon as possible to benefit patients around the world!

Resources:

[1] Official information of each company and official press releases of relevant investors

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