China’s 3DMed Diagnostic raises $224m in second equity financing round

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Molecular diagnostics firm 3DMed Diagnostic announced on Monday the completion of a 1.5 billion yuan ($224 million) independent equity financing round — the second after it spun off from Chinese precision medicine developer 3D Medicines (3DMed) two years ago.

The new round was led by CITIC’s alternative asset manager CPE, with participation from CICC Capital, a private equity fund management platform affiliated with Chinese investment bank CICC; Chinese pharmaceutical firm Jemincare; and Tsing Song Capital, which focuses on biotech and healthcare-related deals.

Other investors included Spinnotec, a Chinese state-owned enterprise focused on VC investments and financial services; Haier Biomedical, which develops low-temperature storage equipment for biomedical samples; Shanghai-based Ruiyi Investment; and investment company LanShang Capital.

Existing shareholders Luxin Venture Capital, Shandong Transportation Industrial Development Fund, and life science-dedicated VC firm Sangel Capital re-upped in the investment round.

Proceeds from the new round will be primarily used for the R&D of precision diagnosis equipment and reagents, including fully-automated, next-generation sequencing (NGS) flow-line equipment, in vitro diagnostic medical devices (IVDs), and the expansion of the firm’s overseas business expansion, and commercialisation team, said Xiong Lei, chairman and CEO, 3DMed Diagnostic, in a statement.

Founded in Shanghai in December 2010, 3DMed is a clinical-stage biopharmaceutical firm developing next-generation immune-oncology therapies to treat cancer patients worldwide. The firm’s pipeline includes biologics and small molecule anti-cancer treatments. It conducts global clinical development and registration of oncology products.

3DMed had spun off its diagnostics department and precision medicine R&D unit in 2018 due to “the firm’s rapidly-developing businesses and its shifting focus on varied requirements of different capital markets,” it said in a statement this January. The firm said that it planned to list the spin-offs on different capital markets in the future.

After the spin-off, the precision medicine R&D unit, which continues to be branded as “3DMed,” had raised $140 million co-led by Chinese state-backed China Securities’ subsidiary China Capital Management and Efung Capital, a biomedicine-focused venture capital firm, in early October.

In its initial financing round, 3DMed Diagnostic had raised 280 million yuan ($41.8 million) in January 2020. The first round was led by China Resources Pharmaceutical Industry Investment Fund, a vehicle backed by Chinese state-owned conglomerate China Resources.

China’s precision medicine market generated over $4.9 billion in revenue in 2018, according to market research firm Reportlinker.com.

The market is projected to grow at a compound annual growth rate (CAGR) of 12.82 per cent between 2019 and 2029, mainly driven by factors such as shifting significance in medicine from reaction to prevention, government initiatives for the incorporation of precision medicine, lowering costs, and advancement in sequencing technologies.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.