Recently, an institution called Yuanshan Health Industry Investment Fund, with a total size of 500 million yuan, was announced. According to public information, the executive partner of this fund is Zhangzhou Zhanxin Venture Capital Fund Management Co., Ltd., and its capital contribution is equal to the total scale of the fund, that is, 500 million yuan. The Fund's main investment areas cover venture capital in unlisted companies and equity investment, investment management and asset management in private equity funds.
Although the fund does not show particularly outstanding characteristics in terms of overall size, it is quite remarkable that it has the backing of China's established Chinese medicine companies. The analysis of the shareholding structure shows that the fund is jointly held by a number of companies, including Zhangzhou Pien Tze Huang Investment Management Co., Ltd., a wholly-owned subsidiary of Pien Tze Huang, a well-known biomedical listed company, Zhangzhou Pien Tze Huang Asset Management Co., Ltd., and Zhangzhou Industrial Equity Investment Co., Ltd.
Pien Tze Huang is one of the treasures of China's traditional Chinese medicine industry, and occupies an important position in the field of traditional Chinese medicine with its excellent curative effect and rich cultural connotation. Since its establishment in the Jiajing period of the Ming Dynasty, Pien Tze Huang has a history of nearly 500 years, witnessing the inheritance and development of traditional Chinese medicine culture.
Pien Tze Huang, a traditional Chinese medicine company, has entered the investment world and become an LP (limited partner) of venture capital, which has attracted attention. Historical records show that this is not the first time Pien Tze Huang has set foot in the field of venture capital, it has previously invested abroad and has injected capital into a number of pharmaceutical companies.
Pien Tze Huang's entry into the field of venture capital is not an isolated phenomenon, and many listed pharmaceutical companies are actively participating in the establishment of funds
Pien Tze Huang's LP role is just one example of the expansion of many pharmaceutical companies into the private equity and venture capital space. In the current environment, a large number of pharmaceutical companies are actively entering the venture capital circle, showing the trend of deep integration of the pharmaceutical industry and the investment field. These pharmaceutical companies are increasingly cooperating and interacting with funds from different regions.
During the same period when Pien Tze Huang was involved in this field, three related events occurred: on July 12, BAHEAL Pharmaceutical Group signed a strategic cooperation agreement with Suzhou Venture Capital, Suzhou Industrial Park Venture Capital Guidance Fund and Suzhou System Institute. Together, they have established an industry fund focused on the life sciences and health industry to support the commercialization of outstanding scientific research results. The industry fund will mainly focus on the start-up stage investment and incubation in the fields of biomedicine and medical devices, with special attention to the commercialization and industrialization process of the results of scientific research institutes. BAHEAL Zhongxin Fund, a subsidiary of BAHEAL Pharmaceutical Group, serves as the fund manager and is responsible for the daily management and operation of the fund. At the same time, the partners will carry out in-depth cooperation at multiple levels such as policy support, transformation of scientific research achievements, R&D collaboration and product commercialization, and are committed to building a market-led innovation system combining industry, education and research, and promoting the construction of innovation and development clusters for the biomedical industry in Suzhou.
Baihua Pharmaceutical Co., Ltd. recently announced that its subsidiary, Baihuaxin, has participated as a limited partner in the establishment of Guangyixing Private Equity Investment Fund Partnership in Gaozhu New Area, Sichuan and Chongqing. In this contribution, Baihuaxin promised to invest 9.5 million yuan, accounting for 7.60% of the fund's total subscribed capital. In addition, Guangan Investment Group Co., Ltd. also joined the fund as an LP (limited partner), with a capital contribution ratio of 38%.
The main business scope of Guangyixing Private Equity Investment Fund includes equity investment in unlisted enterprises, with a focus on domestic and foreign markets. The operation cycle of the fund is designed to be 4 years of investment and 3 years of exit. Its investment areas cover a number of key industries, including pharmaceutical approval industrialization, CRO/CDMO services, medical device manufacturing, high-end medical consumables, biomedical research and development, and innovative drug development platforms.
Dongya Pharmaceutical recently announced that it has established a pharmaceutical investment fund with a total amount of nearly 300 million yuan in cooperation with Oriental Jiafu, a private equity fund management institution under Zhejiang Oriental, and other state-owned entities. The Fund invests primarily in drug companies focused on formulation development co-founded with Dong-A Pharmaceuticals and other investors. The newly established company will independently develop or entrust a CRO to develop and obtain a drug registration certificate.
Investment activity in the pharmaceutical sector did not begin in 2024. Prior to this, a number of listed companies, including Bethany, Hengrui Pharmaceutical, Yangpu Medical, Anxu Biotech, Kaipu Biotech, Yingke Medical and Baicheng Pharmaceutical, have provided financial assistance to venture capital and private equity funds seeking financial support during the capital market downturn as limited partners.
Tigermed's investment performance in the medical and health industry is outstanding, and its investment footprint covers many well-known investment institutions such as Qiming Venture Capital, Pacific Century Capital, Yunfeng Fund, Legend Capital, Yida Capital and Boyuan Capital. In 2021, Tigermed further expanded its investment footprint and set foot in a number of projects such as AstraZeneca CICC Medical Fund, Shanghai Lingang Life Blue Bay Fund and Hankang Biomedical RMB Fund, which earned it the nickname of "Professional Investment Company".
The healthcare industry is an indispensable part of many industries due to its close connection with the aging of the population, and is seen as an area full of unlimited opportunities
In Japan, for example, the healthcare industry has maintained a leading position in terms of return on investment over the past two decades. By becoming a limited partner (LP), listed pharmaceutical companies can effectively cope with the challenges brought about by the centralized procurement policy, while improving the efficiency of capital utilization and opening up new profit channels through strategic external investment.
These companies usually have deep industry experience in the medical and health field, so they are constantly optimizing and improving their own industrial chain structure while pursuing industrial synergies. Compared with venture capital and private equity funds, listed companies pay more attention to the integration of projects with their existing resources when making investments, and this strategy helps them identify and invest in potential high-quality M&A targets, so as to achieve effective capital appreciation.
For Pien Tze Huang, its core advantage is that it has a "national top secret formula" similar to Yunnan Baiyao, which is a significant manifestation of its unique technical assets. The company uses investment as a means to strengthen the integration of resources and promote the deep integration of traditional Chinese medicine and modern technology, not only to pursue higher economic benefits, but also to allow Pien Tze Huang's unique traditional Chinese medicine culture to be more widely recognized and disseminated.
Pien Tze Huang Investment Fund was created with the aim of integrating tradition and modernity, culture and capital, and providing continuous impetus for the sustainable development of the Chinese medicine industry. The establishment of the fund not only demonstrates Pien Tze Huang's outstanding potential in the investment field, but also opens up a broad world for the progress of the Chinese medicine industry. We look forward to the great potential and contribution it can show in promoting the development of the industry.
Zheshang Science and Technology Statement: This article does not constitute any investment advice.