Interview with the birth of venture capital Chen Jie: new drug research and development ushered in the golden age


With the advent of China's ageing population, high incidence of cancer, biological medicine industry more and more precious. In the world, the biological pharmaceutical market in the rapidly expanding scale, at home, "made in China 2025" will be biological medicine as a key development areas. Biological treatment is becoming a tuyere area of venture capital. Recently, in the state of hangzhou autumn summit, sohu finance had an interview with focus on investment in suzhou yuan raw biological medicine industry throws the founding partner of kit, asked him to share the knowledge of investment trends, as well as their own investment layout. 

Springtime for the medical investment, a large number of generic drugs enterprises will be eliminated 

In mid-august, "about the opinions of the drug review of medical equipment examination and approval system reform", will speed up the new drug approval process, at the same time, the government will also pilot drug production license system, in the kit, which means that the medicine to invest in new arrival of spring. 

"Such as cancer drug approval documents to apply to clinical, due to the food and drug administration was short, wait time to 15 to 18 months, now the records and aligning with the FDA in the United States, as long as apply to the state food and drug administration, in the six weeks did not respond to the clinical, thus can greatly shorten the time." It is understood that China's human medicinal center only 120 people, is far lower than the scale of thousands of people from the United States and the European Union, resulting in a large number of new drugs cannot quickly for examination and approval. 

"In addition, the state of major disease medicine, innovative medicine will set up a green channel. There are four light, no light, green light, yellow light, red light, for some of the technical innovation, can the green light even without light, for the variety of countries want to eliminate, may be a red light. This will bring great opportunities for the whole medical investment field and impact, especially early for us to focus on investment in the medical health project funds, investment return period shorten, capital efficiency will improve." 

"Recent state to pilot the pharmaceutical production license, pharmaceutical research and development of all varieties and the final production is not necessarily the same, can be authorized to qualified enterprises. For pharmaceutical research and development enterprise, there is no need to go to the factory, thereby reducing the waste of medical resources. The investor is a good thing for us, we will use the money on the blade, is to do clinical research and development, varieties after can cooperate with others, don't need another factory, which funds return will be much higher efficiency, speed will be a lot faster." 

Kit that two New Deal would eliminate a large number of very poor level of generics companies, because the New Deal regulation of generic drugs to eva1uate biological specificity, consistency test, such as for generic drugs have been listed, also want to review, only pursues scale for ever, don't pursue research and development of the enterprise, will be a big, big impact. But for yuan venture capital that has been sticking to the new drug research and development, or generic enterprise research and development ability is strong, can be a positive, because out a batch of will speed up the approval. 

It is understood that China now has nearly 5000 large and small pharmaceutical companies, but generics companies accounted for more than 90%, after have the personage inside course of study says, as a result of the previous drug manufacturing national standard relatively loose, if strictly enforce the new standards, domestic or there will be a third generics companies will die. 

According to hit group, in the second quarter of 2015 healthcare VC/PE financing case 29, rose 107% month-on-month and raise $481 million, up 65.63% month-on-month. Financing amount rise significantly in the second quarter of 2015, and trading volume is 2014, a rise of nearly 62.83% in the second quarter of 295 million dollars in both the number and size are showing a strong rising trend, the field has become a "pet" VC/PE. 

Yuan gave birth to venture investment layout: four subdivision industry has great potential/holds great promise 

Since biomedical fields in tuyere, which more promising niche business? Kit has revealed the meta life throws the four investment focus: new drug research and development, the high-end medical equipment import substitution, accurate medical () in the clinical application of gene sequencing, outsourcing service. 

"Yuan venture over 15 companies, now has a new drug research and development, such as suzhou pharmaceutical co., LTD. Is a new drug research and development enterprise for prostate cancer, is a five-year major projects, now do a period of clinical, belongs to the green channel in national drug approval. Scholars both entrepreneurs is the national one thousand plan. The project is the first round of last year and you put together, they have recently made a new round of financing, yihong CDH is capital, than we have an ideal growth last round." It is understood that suzhou to develop pharmaceutical in July this year won hong CDH capital investment of $10 million. 

"We vote for another new drug research and development enterprise's union, is a diabetes drug, is doing a period of clinical, phase ii clinical immediately do, he do this breed is promising in the field of diabetes treatment on international varieties. The original medicine to play two a day, the medicine is a shot, a week of the enterprise market in the future market will be quite large. China now has one hundred million people with diabetes, the market is quite large, with clinical figures also is quite good, also has a lot of talking about raising capital." 

"Recently threw a sheng medicine, also is a new drug research and development enterprise, a few old founded enterprises, they founded the pharmaceutical research and development enterprise success before a few million dollars sell to multinational corporations, to now, we voted for them, also is very good project, several drugs in clinical and phase ii clinical issue." We have learned, in August, the medicine announced complete A wheel, A total of 96 million RMB financing, capital led by yuan wo origin and yuan Ming, leaning back vc, yuan gave birth to vc and rock valley venture capital fund to vote. 

Kit, according to the clinical application of gene sequencing is the key investment direction, mainly is aims at the risk of cancer, early diagnosis and screening for cancer, or in the process of cancer treatment curative effect and recurrence of investing. 

"We invest in another gene sequencing company admera, this is a group of Chinese scientists in the United States to stay in the United States founded the company, our goal is to be after a few years to foster listed. We also threw another clinical application of gene sequencing company, is cast with softbank China, that is another kind of mode, help the hospital to build capacity, domestic big 3 armour hospital want to a lot of things they do, the company is equivalent to provide hospital equipment, software, platform, combine the products of others." 

"We just recently voted in the other a company to do screening for colon cancer, we particularly likes, he is through some of the key indicators, gene, waste, etc., to make an early judgment of colon cancer can need not do so colonoscopy. America has a public company is also the same products, our products will be more suitable for Chinese. Because China is the second and third big cancer of colon cancer, early screening is needed." 

In high-end medical equipment import substitution, "we have voted in some high-end medical equipment company, one of which is with tencent, fosun investment in the United States a mobile medical equipment company, called scanadu, products is a small mobile medical equipment, the forehead on fifteen seconds, your blood pressure, heart rate, body temperature, blood oxygen saturation data is on the phone, can be passed to the doctor. I believe that Chinese consumers will like such a cool things." 

Kit said that from the perspective of a doctor, now mobile medical treatment, including remote interrogation needed parameters. But to the data provided by the doctor can't is consumer electronics, because doctors don't know, want to assume legal responsibility, so the portable medical device must be medical level. If it is a consumer electronics is very easy to do. 

Kit is singled out apple watches, originally wanted to put the medical applications to apple watches, later all didn't do, because of the high difficulty quite, to do the medical level there are a lot of technology in it. 

Biomedical investment risk is lower than the Internet a lot 

The understanding of the investment is always accompanied by risk, and in generally, the research of investment the probability of failure tend to be very big, but it said the medical kit medical investment risk than the Internet risk is much lower, the reason is that the investment is driven by technology, do not burn money is nothing like the Internet. "Research and development done, there will be a lot of IP and technology can also cooperate with other people, can also sell to other companies. We voted for 20 or 30 companies, also no die, unlike Internet companies, there may be a return, 100 times and 99 companies are all dead." Kit said. 

Previous biological medicine field is one of the biggest risk in the investment of time is too long, but kit said, on the one hand, the new drug approval policy would shorten the process, on the one hand, yuan vc is not in the project investment from the start, but choose to invest together in the clinical stage or clinical, thus shorten the payback period, the yuan born venture capital can choose multinational drug companies have been validated targets and mechanism of the drug is given priority to, China's entrepreneurial teams on the basis of the former, this will reduce a lot of clinical failure risk. 

Kit said, biological medicine in the United States is close to one 6 of the total GDP industry, China is far lower than the proportion. As the population ages, the high incidence of cancer, the field would be better and better, is a sunrise industry. 

Now competition is very intense, of course, kit is honest, now late project valuation is very high, the profit space is little, coupled with the registration system and the new three board, many have a certain scale of listed companies can be directly, not investors' money. In this case, the investor can only choose two directions: either focus back to do m&a integration, or go to do early investment. 

Kit that for domestic entrepreneurial teams, due to the policy significantly reduces the time and resource requirements, for a team with research and development ability, is now a golden age. 


Kit, born yuan throws the founding partner, the current launch and manage new fund scale nearly RMB 600 million yuan biological industry, focus on life sciences, has since founded in September 2013 investment in China and the United States more than 10 innovative companies biomedical fields, including: MID Labs medical Fang En Admera Health Scanadu union biological to develop pharmaceutical industry, etc., covering biotechnology, new drug research and development, medical equipment and medical and Health services. Suzhou biological nanometer garden is yuan core investor, venture capital fund is one of the sponsors.