On March 23, 2020, the leading domestic innovative pharmaceutical company, Nuo Cheng Jian Hua Pharmaceutical Co., Ltd. (the securities referred to as “Nuo Cheng Jian Hua-B”), a strategic investment of Loyal Valley Capital, was listed on the Hong Kong Stock Exchange. Listing transaction. Nuocheng Jianhua is the first company to complete the listing ceremony on the Hong Kong Stock Exchange through a “cloud ringing bell” online video. The total amount of funds raised this time is approximately HK $ 2.24 billion. As of the close of March 27, Nuocheng Jianhua-B has risen 22% from the issue price. Under the recent complicated international capital market environment, Nuocheng Jianhua’s successful listing has undoubtedly shown that the company has been strongly recognized by investors.
Congratulations to Nuocheng Jianhua for listing
On March 23, 2020, Loyal Valley Capital, a leading domestic innovative pharmaceutical company, made a strategic investment in Nuocheng Jianhua Pharmaceutical Co., Ltd. (the securities referred to as “Nuocheng Jianhua-B”) in Hong Kong. The stock exchange is listed for trading. Nuocheng Jianhua is the first company to complete the listing ceremony on the Hong Kong Stock Exchange through a “cloud ringing bell” online video. The total amount of funds raised this time is approximately HK $ 2.24 billion. As of the close of March 27, Nuocheng Jianhua-B has risen 22% from the issue price. Under the recent complicated international capital market environment, Nuocheng Jianhua’s successful listing has undoubtedly shown that the company has been strongly recognized by investors.
As a leading investor in Series D financing and one of the investors in Series C financing of Nuocheng Jianhua, Zhengxingu is also honored to continue to support the company as one of the cornerstone investors in this IPO. Nuocheng Jianhua is also an innovative drug platform-type company that has been successfully listed in Zhengxingu’s portfolio after Junshi Biological and Fuhong Hanlin. Zhengxingu focuses on investing in great enterprises, focusing on supporting entrepreneurs who are pursuing excellence, and building long-term, continuous efforts to build world-class outstanding enterprises. Nuocheng Jianhua is a highly innovative new drug creation platform company. It has the world’s top scientist Professor Shi Yigong and a strong and efficient founding team represented by Dr. Cui Xiongsong, a rich R & D product line, and international level clinical development Team, and focus on solving a series of disease problems facing humans.
In Zhengxingu’s view, Nuocheng Jianhua is the perfect combination of the pharmaceutical industry and academia. Co-founder Professor Shi Yigong is the world’s top structural biologist, bringing strong frontier scientific support to the company’s research and development work. Co-founder Dr. Cui Xiongsong was the CEO of the well-known CRO company PPD Technology Co., Ltd.Industry managers. The core management team mainly comes from companies such as PPD Technology, Roche, Johnson & Johnson, and has many years of teamwork experience. Zhengxingu believes that Nuocheng Jianhua has a rare domestic team of top scientists, entrepreneurs, and experienced R & D personnel. It has profound insights into the current status of China’s biomedical industry and has achieved a good balance. As a result, the company’s research and development has both forward-looking insights and depth, and is extremely efficient. The comprehensive quality of the top team will also ensure that Nuocheng Jianhua will continue to overcome challenges in the future commercialization and industrial production process and become an integrated platform-based innovative drug company.
Strong R & D product line is another important reason for Zhengxingu’s strategic investment in Nuocheng Jianhua. Relying on the company’s structural biology platform and innovative target discovery platform, Nuocheng Jianhua has established R & D pipelines mainly focusing on the two major fields of tumors and autoimmunity. The R & D products currently entering the clinical stage include BTK, FGFR4, pan-FGFR, And NTRK inhibitors. The company’s current core product, the BTK inhibitor obutinib, has submitted marketing applications for two indications, MCL and CLL, and has received priority review qualification. The global BTK inhibitor market has exceeded USD 8 billion in 2019, and no product has been launched in China. Obutinib has potentially better safety and medication compliance (only one medication per day), and is expected to be approved for marketing in China by the end of 2020, bringing the gospel to many blood cancer patients in China. For the international market, Nuocheng Jianhua will explore different combination strategies to challenge the current hematological tumor indications that are difficult to treat with BTK inhibitors. In the field of digestive system tumors, the company’s R & D pipeline includes China’s first highly selective FGFR4 inhibitor ICP-105 for liver cancer, and the pan-FGFR inhibitor ICP-192 for bile duct cancer, gastric cancer and urothelial cancer. In addition, the company recently submitted the IND of the broad-spectrum second-generation NTRK inhibitor ICP-723. It can be said that the research and development pipeline of Nuocheng Jianhua not only has highly deterministic products, but also covers products with high incidence of tumors with Chinese characteristics. At the same time, it has potential products that challenge the international market. Sex and market breadth.
Zhengxingu has participated in the investment in Nuocheng Jianhua since 2018. In early 2019, Zhengxingu led a strategic investment of more than US $ 100 million in the company. After the investment, Zhengxingu fully supports the development of Nuocheng Jianhua. The promotion of Jianhua’s R & D pipeline and the company’s subsequent listing have laid a solid foundation. Zhengxingu has made in-depth investment layout in the entire biomedical industry chain and has extensive coverage of the pharmaceutical industry ecosystem. Relying on a rich ecosystem, after investing in Nuocheng Jianhua, Zhengxingu deeply participated in the governance of the company’s board of directors, actively connected industry resources, contributed industry insights, supported the development of the capital market, and provided strategic support to the company. In the future, Zhengxingu will continue to provide more help in Nuocheng Jianhua’s internationalization, foreign cooperation, and capital markets.
Chinese pharmaceutical industryIn recent years, it has faced tremendous changes and challenges, and the industry structure is undergoing profound changes. The policy level of medical insurance control fees and support for the development of innovative drugs will continue. Traditional generic drug companies are facing increasing challenges, while emerging innovative drug companies are on the rise. There is reason to believe that the top ten and top 20 pharmaceutical companies in China will be in the future. There will be more emerging innovative drug companies in the enterprise. Zhengxingu believes that in addition to Junshi Bio and Fuhong Hanlin listed in the investment portfolio, Nuocheng Jianhua has the same potential. These companies have international teams and have a deep understanding of the Chinese domestic market. In the future, these companies will not only play a more important role in the Chinese market, but are also expected to gradually join the competition in the international market. In the field of innovative medicine, Zhengxingu also deployed Kangfang Bio, Rongchang Bio, Immuno-Onc in the macromolecule field, Ellis Bio, Cinovo Bio, Taoluo Bio, and Heyu Bio in the small molecule field. A large number of outstanding companies such as WuXi JuNuo in the field, and ZhenHe Technology in the innovative drug industry chain.
“Long-term, dedicated, altruistic” is the value of Zhengxingu. The dual-currency fund of RMB Evergreen Fund + US Dollar Fund also lays the foundation for long-term investment in Zhengxingu medicine. In the future, Zhengxingu will continue to take a long-term and in-depth fundamental analysis as a starting point, select high-quality and outstanding medical companies that represent the future growth direction of the economy, make long-term investment arrangements, and work with first-class entrepreneurs to create outstanding enterprises.
At the same time, Zhengxingu believes that through this listing, Nuocheng Jianhua will further enhance its strength and accelerate development, bring better drug choices for patients at home and abroad, and is expected to become China’s best platform innovation. One of the pharmaceutical companies.