The Group’s non-wholly owned subsidiary, Jilin Huisheng Biopharmaceutical Co., Ltd. (“Huisheng Biopharmaceutical”), has successfully completed the first round financing by way of capital increase (the “Capital Increase”) from Series A investors consisting of Jiangsu China Life Jiequan Equity Investment Center (L.P.) (the “China Life Healthcare Fund” or “China Life Private Equity Investment”), Tianjin Grand Flight Yongxuan Enterprise Management Center (L.P.) (the “Tianjin Grand Flight Yongxuan”), Tianjin Binhai Grand Flight Jimao Equity Investment Partnership (L.P.) (the “Tianjin Grand Flight Jimao”) and Beijing T onghe Dingtai Zibenguanli Limited (collectively, the “Four Investors”).
Pursuant to the Capital Increase agreement, the Four Investors subscribed for the newly issued 33.3 million shares of Huisheng Biopharmaceutical at a consideration of RMB500 million. After the completion of the Capital Increase, the registered capital of Huisheng Biopharmaceutical increased to RMB333.3 million, and the overall post-investment valuation was RMB5 billion, of which the Group’s shareholding in Huisheng Biopharmaceutical was 68.4% and the Four Investors’ shareholding in Huisheng Biopharmaceutical was 10% in total.
In order to fully expand into the promising diabetes arena, the company established Huisheng Biopharm in 2014, which focuses on diabetes and complications fields. After seven years of careful cultivation and an investment of over RMB1.5 billion, today, Huisheng Biopharm has a world-class professional R&D team of over 200 people with extensive experience in diabetes drug research and development，and has successfully researched and developed a rich and comprehensive product pipeline of nearly 40 products at different stages, achieving full coverage of the targets in the field of diabetes, covering a full range of second-, third- and fourth-generation insulin and analogues (covering basic, premixed and fast-acting products), innovative drugs with the latest mechanism, such as SGLT-2, GLP-1 and DPP-4, as well as other mechanisms of glucose-lowering drugs and complication drugs.
Dr. Che Fengsheng, Chairman and Executive Director of Sihuan Pharmaceutical Holding Group, said: “Huisheng Biopharm is now the only biopharmaceutical company in China that has achieved full product coverage in the field of diabetes and complications. The successful completion of the Series A financing not only reflects the investors' recognition of the R&D capabilities and industrialization capacity of Huisheng Biopharmaceutical, but also their confidence and expectation in the value creation of the company's full product pipeline in the field of diabetes and complications, as well as its broad market prospect in the future. The proceeds from the Capital Increase are mainly used to meet the normal operational needs of Huisheng Biopharmaceutical, including advancing clinical trials of products under development, purchase of production equipment and replenishment of operating liquidity. This round of financing is the Series A financing conducted by four investors, thanks to their strong support, Huisheng Biopharmaceutical has been able to continue to develop in the biopharmaceutical field and benefit more patients with diabetes and complications.”
Jiang Li, Managing Director of China Life Private Equity Investment, said, "The prevalence of diabetes has continued to rise in recent years and has become a major global challenge for individuals, families and society. We are honored to participate in the first round of financing of Huisheng Biopharmaceutical, we highly recognize the full product matrix that Huisheng Biopharmaceutical has in the area of diabetes and complications, and we are fully optimistic about the future value of the company. China Life Private Equity Investment will continue to assist Huisheng Biopharmaceutical to grow into a leading biopharmaceutical company with full solutions in diabetes and complications area, to further benefit the patients worldwide.”
Huisheng Biopharmaceutical
Huisheng Biopharmaceutical is a biopharmaceutical company under Sihuan Pharmaceutical, a large domestic pharmaceutical and medical aesthetics group, focusing on the areas of diabetes and complications. After 7 years of construction and development, the company currently has a world-class R&D team of more than 200 people with rich experience in diabetes drug research and development. At present, it has nearly 40 products in the whole product pipeline of diabetes and complications, covering a full range of second-, third-, and fourth-generation insulin and analog product pipelines (covering basic, premixed and quick-acting products), innovative drugs with the latest mechanism, such as SGLT-2, GLP-1, DPP-4, and other hypoglycemic drugs and complication drugs of various mechanisms. Huisheng Biopharmaceutical is currently the only biopharmaceutical company in China that has achieved full product coverage in the field of diabetes and related complications, and integrated the whole industrial chain of R&D, production and sales. It is committed to providing full-process, allround integrated treatment solutions for diabetic patients, serving patients and making health easier.
Lead Investor China Life Prviate Equity Investment
China Life Private Equity Investment is the lead investor in the financing of Huisheng Biopharmaceutical, followed by Tianjin Grand Flight Yongxuan, Tianjin Grand Flight Jimao and Ginkgo Capital. Among them, the lead investor, China Life Private Equity Investment, is a professional private equity investment platform under China Life. With the investment philosophy of prospect for the future, embrace innovation and create value, China Life Private Equity Investment has made extensive investment layout in the fields of life science, medical technology, medical services and digital healthcare, and has invested in a number of industry-leading medical and healthcare companies in China.
Sihuan Pharmaceutical Holdings Group Ltd.
Founded in 2001 and listed on the Main Board of The Stock Exchange of Hong Kong Limited in2010, Sihuan Pharmaceutical is an international medical aesthetic and pharmaceutical enterprise led by innovation, with an independent and leading research and development technology platform, a rich global product pipeline, strong product registration capability, a full dosage form production platform with high efficiency and low cost and a mature and excellent sales system. Adhering to the overall strategic goal for the “full promotion of a two-wheel drive strategy of its medical aesthetics and biopharmaceutical businesses”, Sihuan Pharmaceutical endeavors to build itself into a leading medical aesthetics and biopharmaceutical company in China.