Hua Medicine, a clinical-stage company developing first-in-class and best-in-class therapies for China and the world-wide market, announced the closing of a combined US Dollar- and Chinese Renminbi-denominated investment of approximately $50 million in Series C financing. The Series C was led by Harvest Investments, a leading private equity firm in China. Frontline BioVentures led the financing participation from existing investors which include notable international VCs such as ARCH, Venrock, Fidelity (now Eight Roads and F-Prime Capital), WuXi Ventures, SAIL, Ally Bridge Group and TF Capital. China Renaissance acted as the company's financial advisor in the transaction. The current round of financing was more than 3x-oversubscribed, and in addition to supporting the completion of long-term Phase 2 clinical trials this year, the new funds will enable the company to accelerate the Phase 3 development plans of HMS5552, a new 4th-generation glucokinase activator (GKA) for Type 2 diabetes, as well as advancing additional novel assets in its pipeline.
"Hua Medicine is one of the most innovative healthcare companies in Asia. It has the first new biological mechanism, first-in-class diabetes drug to be developed entirely in China – from preclinical to late-stage clinical trials. With ongoing studies in both Asia and the U.S., the company is also well positioned to make an impact in the broader international markets" said Raymond Qiu, CEO of Harvest Investments, "This combination of innovation, high-quality standards, and an international perspective similar to Harvest's own philosophy is among the key reasons we were delighted to support the company."
"Having supported the company since inception, Hua Medicine has proven to be exceptionally efficient in its development, achieving clinical success within record regulatory approval times. This demonstrates the quality of the management team and its ability in execution," said Leon Chen, Managing Partner of Frontline BioVentures, "We look forward to working closely with them along with the outstanding international syndicate of new and current investors to help advance the company's global development plans."
Hua will finish its multicenter, 12-week Phase 2 trial of HMS5552 in diabetic patients (ClinicalTrials.gov identifier #NCT 02561338) by mid-year with topline results available by the end of 2016. The company has already completed a total of four Phase 1 clinical trials including single- and multiple-ascending dose trials (NCT01952535 and NCT02077452, respectively), a four-week Phase 1c mechanistic and preliminary pharmacodynamic efficacy study (NCT02386982), and a recent Phase 1d study of HMS5552 in combination with metformin completed in the US (NCT02597400). These results further validate HMS5552's effective and novel mechanism of action, guiding potential trial design and patient selection in the upcoming Phase 3 studies.
"We are very impressed by the world class management team of Hua Medicine and the true innovation and potential breakthrough in diabetes care that the company is exploring" added Kevin Xie, Managing Director and co-founder of China Renaissance Group, "We believe that Hua Medicine will become one of the most successful biopharmaceutical companies in China, and are pleased to assist them in completing this round of financing successfully."
"We were fortunate to attract significant investor interest during this round," noted Hua's CEO Li Chen, "Our team is very pleased to see the market's recognition of HMS5552's promising clinical profile and its potential to help treat many of the 422 million diabetes patients worldwide."
About Hua Medicine
Hua is a leading, innovative drug development company in China focused on novel therapies for the treatment of diabetes and CNS disorders. Founded by an experienced group of entrepreneurs and international investment firms, Hua currently has world-wide rights to two novel assets. The most advanced program is a first-in-class, oral drug for the treatment of Type 2 Diabetes that will shortly complete Phase 2 trials in China. The Company has also licensed or internally developed earlier-stage compounds focused on highly validated targets for multiple indications. Hua's strategy is to leverage the cost-efficient and high-quality drug discovery capabilities available in China, while partnering or licensing the most promising drug assets from the US and abroad. Through these efforts, Hua intends to be the driving force behind China's evolution into a global drug development innovation center. For more information:www.huamedicine.com
About Harvest Investments
Harvest Investments is the only direct investment platform in the primary market of Harvest Group, one of the largest asset managers in China, which was developed by Dr. Zhao Xuejun, CEO of Harvest Group. Dr. Zhao's core investment philosophy is that capital should be invested in the best enterprises to support China's economic transformation. The key focus of Harvest Investments is science and technology. Specifically, Harvest Investments focuses on two principal sectors: a) healthcare, especially technology-driven healthcare companies and b) new technology, especially 'Internet plus' related fields. For more information, please visit: www.jsfund.cn
About Frontline BioVentures
Frontline BioVentures is a leading venture capital firm with expertise and broad network in the life sciences industry in China. Supported by a team of experienced investment professionals and with offices in Shanghai, Suzhou and Hong Kong, Frontline BioVentures is one of the most active investors based in China investing in innovative biopharmaceuticals and medical devices. For more information: www.frontlinebioventures.com
About China Renaissance
China Renaissance is a leading investment bank serving the financing needs of China's "new economy" entrepreneurs, those creating business models powered by the Internet and information technology. The firm's services include private fund-raisings, public offerings, mergers and acquisitions, sales and trading execution and equity research across a broad range of sectors, with a particular specialization in TMT, education, healthcare and consumer products. Since its inception in 2004, China Renaissance has become the number one private placement and mergers & acquisitions advisor to China's entrepreneurs. It is consistently recognized for its innovative capabilities and success in providing tailored financial solutions for clients. ChinaVenture named China Renaissance "The Best Boutique Investment Bank" in ten consecutive years from 2006-2015. China Renaissance has successfully completed more than 340 transactions and raised more than $68 billon capital. For more information, please visit: www.huaxing.com
John Choi, Chief Business Officer