Xi Venture Capital Nuggets Medical "Potential Stocks"

　　On June 15th, the "2022 Future Medical Top 100 Series List" in China was released, and nearly 20 companies invested by Xi Venture Capital were included in the list. The Future Medical Top 100 List, founded in 2015, is the first innovative medical field list for non listed companies in China launched by VB100, Arterial Network, and Eggshell Research Institute. The companies listed on the list are all "potential stocks" favored by industries and capital. In just three years, Xi Venture Capital's layout in the field of life and health has begun to show results, revealing the "tip of the lotus".

　　Smart eyes recognize "talents" and they will become innovative medical "leaders" and star studded enterprises on the list. Hailai Xinchuang, silicon-based biomimetic, Weimai Biotechnology, and Ruiyi Biotechnology ranked 13th, 30th, 53rd, and 84th on the "China Innovative Medical Device List TOP100"; Tainuo Mabo, Arno Pharmaceuticals, Paige Pharmaceuticals, and Zhikang Hongyi ranked 26th, 34th, 47th, and 94th respectively on the "China Innovative Biomedical List TOP100"; Baize Medical Group, Hepulos, Quanyuan Tang, and Sinopharm Online ranked 27th, 28th, 44th, and 64th respectively on the "China Innovative Medical Service TOP100" list; Tangji Medical and Zhiben Medical have been shortlisted for the top ten value areas in 2022; Yinluo Medical has been awarded the "Annual Potential Enterprise"... These listed companies have the same significant characteristics: strong innovation ability, R&D strength, representing the forefront of domestic segmented field development technology, and high capital attention... Taking Hailai New Venture as an example, it is the first domestic enterprise to productize tumor therapy electric field technology (TTF) and enter multi center clinical practice, with 32 patented technologies. In 2020, Hailai Xinchuang established clinical cooperation with Huashan Hospital affiliated with Fudan University (the leading unit) and officially launched the first domestic TTF device EFE-G100 (indication for glioma) in multi center clinical practice. TTF is a validated and innovative cancer treatment method that, when applied, will effectively prolong the survival time of patients. ”Xue Zhifeng, the head of the medical and health team at Guolian Xinchuang, a mixed ownership management company under Xicheng Venture Capital, told reporters that the company is currently in the C++round of financing, supported by Guolian Xinchuang and Huishan Life Science and Technology Industrial Park. It has received investments from several international top institutions including Temasek, Hillhouse, Eli Lilly Asia, Yunfeng, and Tiggo.

　　The layout of the new "blue ocean" attracts outstanding enterprises from other places to "settle down" in Wuxi with a high investment hit rate, relying on the forward-looking layout of Wuxi Venture Capital in the medical and health field. According to Hua Xiaofeng, Chairman of Xi Venture Capital, the company has been focusing on investing in the pharmaceutical and health field since 2019, and has achieved good results in just three years. Among them, the invested company, Time Angel, was listed on the Hong Kong Stock Exchange last year. Xi Venture Capital currently invests in medical and health projects throughout the Yangtze River Delta and Pearl River Delta, covering everything from start-up, mid-term to post IPO projects. The continuous investment of capital has enriched the project reserves of Wuxi Venture Capital in the medical and health field, and also attracted a group of excellent enterprises to Wuxi. In March of this year, Zhongsheng Tianxin and (Wuxi) Biotechnology Co., Ltd. received strategic investments from the China State owned Enterprise Structural Adjustment Fund Phase II and the China National Pharmaceutical Group Zhongjin Fund Phase II. It is reported that this is a "famous family" who moved from Beijing to Wuxi. It is a subsidiary of Sinopharm Group China Biotech Holdings. Its medium business accounts for about half of the market share of domestic products, and it is a supplier of China Biotech COVID-19 vaccine medium. The investor, Guodiao Fund Phase II, is operated by Xichuang Capital. By strategically investing in the introduction of central enterprise bio supported technology into Wuxi, this cooperation is undoubtedly a model of central local cooperation. This strategic investment will help enterprises tackle technological challenges, achieve independent and supply guarantee in the upstream of the biopharmaceutical industry chain, and contribute to solving the bottleneck technology and industry chain security issues in China's biopharmaceutical industry. In addition, Wuxi Tianguangtai Medical Technology Co., Ltd., located in the Pearl River Delta, has also been assisted by Wuxi Venture Capital in attracting investment and landing in Binhu District, Wuxi. The company has strong product development capabilities and profound technical expertise, with a rich pipeline covering areas such as coronary, peripheral, and neural interventions.

　　At present, the medical and health industry in Wuxi has firmly stood on the hundred billion yuan mark and is rapidly moving towards the higher goal of achieving 200 billion yuan as soon as possible. However, due to the large initial R&D investment and long cycle of medical and health enterprises, it is difficult to generate positive cash flow, and the financial support of investment institutions is particularly important. As a localized investment institution, Xi Venture Capital focuses on local characteristics, deeply cultivates industry fields, and has a large investment coverage in local enterprises. It has also achieved good interaction with multiple industrial parks in Wuxi. It has a presence in the fields of biomedicine, medical equipment, in vitro diagnostic reagents, and medical services in Wuxi, with biomedicine projects accounting for over half of the total. According to Xue Zhifeng, "Since 2020, there have been over 30 investments of more than 30 million yuan in the medical and health field in Wuxi, with Wuxi Venture Capital contributing the main force." How can capital be upgraded to help local industries move towards higher goals? Xue Zhifeng said, "At present, the scale of the biopharmaceutical specialized industry fund in our city is still relatively small. Only two biopharmaceutical specialized industry funds with a subscribed scale of over 1 billion yuan in the city are CICC AstraZeneca and Guolian Guokang. Unlike the investment logic of most industries, investment in the medical and health industry has highly specialized and high-risk characteristics. Therefore, it is recommended to further enrich capital strength, establish larger scale specialized industry funds, and establish supporting mechanisms such as risk compensation to allow more social capital to participate.

Article source: Wu Mengjia, reporter from Wuxi Daily