Under the epidemic situation, traditional Chinese medicine is playing an increasingly important role.
Recently, the report of the WHO expert evaluation meeting on the treatment of covid-19 pneumonia with traditional Chinese medicine clearly affirmed the safety and effectiveness of traditional Chinese medicine in the treatment of covid-19 pneumonia.
In this regard, the relevant person in charge of the State Administration of traditional Chinese medicine said that this report fully affirmed the contribution of traditional Chinese medicine in combating covid-19 pneumonia, reflected the who’s great attention to traditional medicine such as traditional Chinese medicine, and also showed that traditional Chinese medicine has great potential in combating the epidemic in the century in the future.
Since the outbreak of Chinese medicine in December 2019, the reporter of Kechuang Daily has paid extensive attention to the effect of Chinese medicine treatment. In the primary market, some investors said that traditional Chinese medicine is a treasure of China, and an IPO was also born in 2021.
Changling capital invested in an IPO of traditional Chinese Medicine
Whether the field of traditional Chinese medicine is concerned depends on the financing data.
According to the statistics of third-party market institutions, on February 28 this year, Qixin pharmaceutical completed 3 million Angel round financing, and the investor was Shaanxi venture capital. After this investment, Qixin pharmaceutical’s valuation reached 15 million yuan.
Before the completion of this investment, Hebao pharmaceutical and Jiangzhong Pharmaceutical Co.Ltd(600750) also obtained strategic investment, and Unilever and Shanghai Aladdin Biochemical Technology Co.Ltd(688179) entered.
According to tianyancha, industrial and commercial changes took place in Hebao pharmaceutical in December 2021, and Unilever (China) Investment Co., Ltd. was added as the shareholder. The former is an innovative developer of Chinese patent medicine.
Looking ahead, in April 2021, congbao of traditional Chinese Medicine completed round B financing of RMB 100 million, led by China Resources Life Sciences Group. As an institution building an integrated ecosystem of production, study, research and application of life sciences, China Resources life sciences has taken a fancy to the AI prospect and business model of traditional Chinese medicine congbao.
China Resources Life Sciences Group believes that the internationalization of traditional Chinese medicine must rely on technical means. Congbao of traditional Chinese medicine took the lead in finding this path and proved its feasibility with practical actions. According to the third-party financing data, after the completion of round B financing, the valuation of traditional Chinese medicine congbao reached 500 million yuan.
Like congbao of traditional Chinese medicine, gushengtang traditional Chinese medicine obtained a financing of US $37.7 million in March 2021. Changling capital, Sidao capital (fidelity Asia), NEA Enyi investment and Feihe bet.
As a VC organization in the field of medicine, the entry of Changling capital makes gushengtang traditional Chinese medicine widely concerned. After Changling capital investment, in December 2021, this Chinese medicine outpatient service chain group closed the door of the capital market and landed on the Hong Kong stock exchange.
According to the disclosure of the prospectus, before the listing, long hill capital held 5.18% shares of gushengtang traditional Chinese medicine. However, long hill capital, long hill capital GST and long hill capital plus are all controlled by Jiang Xiaodong, one of the non-executive directors.
It is noted that Jiang Xiaodong is a partner of Changling capital management. So far, the share price of gushengtang traditional Chinese medicine is HK $31.5, with a market value of nearly HK $7.2 billion.
In addition to the above-mentioned investment cases of traditional Chinese medicine, Baicao traditional Chinese medicine, medicine box, quick ask traditional Chinese medicine and Xiaolu traditional Chinese medicine have also been favored by Zhejiang Jolly Pharmaceutical Co.Ltd(300181) , Lianke chuangying, Shenzhen Zhonghai capital and Nokia Growth Fund. They have completed strategic financing, angel round, round B and round C financing, ranging from 2019 to 2020.
the founder of Huarui investment has a “special preference” for traditional Chinese Medicine
The reporter found that Huarui investment has an in-depth understanding and long-term investment layout of the traditional Chinese medicine industry. The former invested in Suzhou Yusen new drug, which specializes in the research and development of new traditional Chinese medicine, as early as 2012. Yusen new drug is the institution with the strongest research and development ability of new traditional Chinese medicine in China.
Up to now, Yusen new drug has completed the e-round financing, and the investors are Longmen capital, Jinyu Bogor and Huaxu.
In 2014, Huarui investment launched “Jiangnan medicine king” Hu qingyutang and its subordinate qingqingbao group, which is the organization with the largest number of drugs in the traditional Chinese medicine industry. In November 2021, the group was acquired by Zhejiang Jingxin Pharmaceutical Co.Ltd(002020) company; In 2015, Huarui invested in weimen pharmaceutical, an R & D enterprise of Miao medicine, to build a high-altitude and low-altitude industrial chain of traditional Chinese medicine.
Zong Peimin, founder of Huarui investment, believes that traditional Chinese medicine is the treasure of the Chinese nation. The reason why the Chinese nation has a large population is closely related to traditional Chinese medicine.
Zong Peimin recalled that he suffered from jaundice and hepatitis when he was a child. A barefoot doctor boiled a bowl of herbal soup and began to get better after eating it for several days. “The core concept of traditional Chinese medicine is dialectical treatment, not treating head pain and foot pain. Any disease has a cause. Finding the cause and treating it can fundamentally solve the problem.”
“With the deepening of cognition, it is found that traditional Chinese medicine is a science that really understands life.” Zong Peimin said with emotion that this is a summary of clinical experience for thousands of years. Traditional Chinese medicine has not only found a set of effective methods to adjust the balance of yin and Yang, but also found many effective special prescriptions. Most importantly, the side effects are much lower than those of Western medicine.
It is worth mentioning that Zong Peimin does not think that the curative effect of traditional Chinese medicine is slow.
“Since there was no physics, chemistry and biology in ancient times, as the basic science of traditional Chinese medicine research, traditional Chinese medicine theory is difficult to be understood by future generations. However, after in-depth understanding, we will find that traditional Chinese medicine theory is completely consistent with current science, and all traditional Chinese medicine theories can be explained by physics, chemistry and biology.”
It is precisely because of its deep understanding of traditional Chinese medicine that Huarui investment has built a comprehensive research and development system for high altitude traditional Chinese medicine, low altitude traditional Chinese medicine and new traditional Chinese medicine by investing in Hu qingyutang, weimen pharmaceutical and Yusen new medicine, so as to strive to develop more well-known good drugs such as “Weifuchun”.
“Huarui investment wants to explore the new practice of traditional Chinese medicine, so that traditional Chinese medicine can enter people’s lives more easily, be understood and accepted, and be popularized more easily, so as to promote the development of traditional Chinese medicine industry.”
the 14th five year plan of traditional Chinese medicine: reasserting the efficacy of covid-19
On March 29, the State Administration of traditional Chinese medicine announced the notice of the general office of the State Council on printing and distributing the “14th five year plan” for the development of traditional Chinese medicine.
The plan defines ten main tasks, involving all aspects of TCM diagnosis and treatment, highlights the characteristic advantages of TCM in health services, and reflects the preventive role of TCM in disease prevention.
Some investor friends said that the TCM track related to covid-19 treatment has been formed. “The state recognized the role of traditional Chinese medicine in the prevention and control of major infectious diseases, including covid-19 pneumonia, and incorporated some traditional Chinese medicine and medical services into the diagnosis and treatment plan of covid-19 pneumonia, further improving the strategic position of traditional Chinese medicine.”
At the same time, the investor friend pointed out that the demand for traditional Chinese medicine formula particles is also released to the terminal, and the landing of medical insurance access will drive a large industrial expansion.
In addition, just as Huarui investment is optimistic about the innovation of traditional Chinese medicine, the investor friend also believes that the innovation combined with modern advanced research means and the layout of R & D pipelines in advantageous fields will become one of the core competitiveness of traditional Chinese medicine enterprises.
“With the policy to increase support for scientific and technological innovation of traditional Chinese medicine, relevant enterprises are expected to accelerate innovation and transformation on the basis of inheritance.” The investor friend said. In addition, the time for Chinese medicine to go to sea may have come. Under the epidemic situation, traditional Chinese medicine enterprises should have the awareness of developing international key markets, and overseas registered sales of traditional Chinese medicine may have a growth curve.
Open source Securities believes that a new round of investment in traditional Chinese medicine has been launched. Investors should follow the policy and seek success according to their plans. Looking for head companies in clinical research and development end, medical service end, traditional Chinese medicine material planting end, payment end, canal end, etc.
