LP Pharmaceuticals (Xiamen) Co., Ltd has raised 500 million yuan ($72 million) in Series C funding led by Sequoia Capital China, according to a company statement on Wednesday.
The funding round saw participation from a clutch of new investors: Industrial Bank, Shenzhen Capital Group, DYEE Capital, Qiandao Fund, Lapam Capital, Fujian Innovation Investment Management, Silicon Valley Huoju Fund, and CICC Transfar, a 10 billion yuan ($144 million) joint fund set up by CICC Capital and the Transfar Group in 2019.
BMD Capital served as the financial advisor for the deal.
“We will use the proceeds to accelerate the R&D of innovative pipelines, enhance the clinical use of drugs, and advance drug innovations,” said Ying Ye, founder and CEO, LP Pharmaceuticals, in the statement.
Established in 2012, Xiamen-based LP Pharmaceuticals produces new generation drugs based on its proprietary delivery platforms including mucosal and oral controlled releases. Its therapeutic areas include disorders of the central nervous system, cardiovascular diseases, cancer, and AIDS.
Ying, who owns a 32.88 per cent stake, is the largest shareholder in LP Pharmaceuticals. Major shareholders include the state-owned SDIC Fund Management (14.29%), China Merchants Bank (10.72%), and aviation company Xiamen Air’s investment arm (5.71%).
SDIC Fund Management, along with CMB International, and Zhangzhou Pien Tze Huang Pharmaceutical had collectively seeded 200 million yuan ($29 million) in LP’s Series B financing in 2017. In 2015, China Construction Bank’s CCB Capital and Qunxian Capital had made an undisclosed investment in the company.