“2018 has ended perfectly!” Qian Mingfei, founder and chairman of Yingke Capital, wrote in the circle of friends after the news of the 100 million yuan Series B financing of Shanghai Hanyu Medical was officially released.
In the past year, despite the overall pessimistic environment of the venture capital market, Yingke Capital has maintained good results in raising, investing, and exiting: 8 billion yuan in new capital raised and nearly 60 billion invested. projects, 14 projects were withdrawn, and the IRR reached 42.27. Compared with 2017, Yingke not only has an advantage in the total amount of investment raised, but also has made a huge leap in project quality, with more than 90% of its investments in star projects of strategic significance.
The medical and health field, which Qian Mingfei is proud of, is also experiencing an explosion. As of December 2018, Yingke Capital's fourth-phase medical fund has a scale of nearly 5 billion, and has invested in more than 60 biomedical projects. In 2018 alone, the exit IRR reached 80. Kanghua Biotech, Zejing Biotech, Sanyou Medical, Weikang Biotech, Jiahe Biotech, Puris... these heavyweight projects in the biomedical industry have all been included in Yingke's territory. Among them, Zejing Biotech and Puruis achieved partial exit in 2018, with IRRs of 58.92 and 157.51 respectively.
The outstanding performance of medical funds makes Qian Mingfei more confident in investing in 2019. "Among the similar funds that mainly invest in biomedicine in China, Yingke's performance is ranked first. Of course, this is an incomplete statistic. But we should have laid out all the heavyweight projects with strategic significance in the industry, and even some projects Yingke has We have obtained the position of important shareholder," Qian Mingfei told the investment community.
Qian Mingfei, founder and chairman of Yingke Capital
Shows his “trump card”
Rapid progress is used to describe investment in the medical and health field in 2018. Too much.
According to the Artery.com report, 1,410 investment and financing events occurred globally last year. After a continuous decline in the number of investment and financing events from 2016 to 2017, they bottomed out and exceeded the historical high; investment and financing The total amount was US$38.801 billion, a year-on-year increase of 70.79, maintaining the rapid growth trend of the past few years.
There are many people who enter the game, and there are also many people who fail. Yingke Capital is one of the few institutions that can seize the top projects in each segment.
Yingke Capital’s investment in the medical and health field began in 2014. At that time, China's medical and health expenditure accounted for only 5.56 of GDP, ranking 123rd among 150 countries and regions in the world, with huge room for growth. Seizing the opportunity, Yingke Capital broke away from the initial mixed business model and gradually focused on including medical and health as one of its key layout areas. However, it only invested in a small number of scattered projects.
In 2015, Tigermed became the cornerstone shareholder of Yingke Capital. This well-known domestic CRO company not only invested capital but also brought a large amount of resources. Yingke began to carry out a comprehensive and industrial chain layout. It is understood that Yingke Capital has taken advantage of Tiger's entrance advantage in the biomedical industry and has established multiple phases of biomedical funds of nearly 5 billion, investing in more than 60 projects in total, including more than 20 projects in 2018 alone. Among the three major tracks of biomedicine, medical equipment, and medical services that Yingke Capital has bet on, some leading companies have already been born.
Kanghua Biological is the second manufacturer of diploid human rabies vaccine in the world and the only one in China. Qian Mingfei described it as “a medical enterprise that masters core technology and a project that benefits human health. It’s also a good investment.” Yingke Capital invested 230 million yuan in August 2016 to become an important shareholder. The company's profit that year was only 6 million yuan. In 2018, the net profit was nearly 200 million yuan, and it may double in 2019.
Yingke Capital invested in Zejing Biotech in April 2016. Zejing Biotech focuses on the research and industrialization of 8 new drugs for the treatment of tumors, bleeding and blood diseases. It has successfully created two distinctive core technologies. The platform has successively undertaken three national “major new drug creation” projects and obtained more than 40 invention patent authorizations from the United States, the European Union, China and other countries.
Weikang Bio, a high-tech enterprise specializing in the research, development, production, application and product services of probiotics and derivatives, has a resource library of more than 3,000 Chinese-characteristic probiotic strains with independent intellectual property rights.
Building the “Entrance”
For today’s Yingke Capital, exploring these high-quality projects is based on laying out the entrance. In Qian Mingfei’s view, when investing in the highly professional field of medical care, it is very important to master the “best entrance”. With the entrance advantage, there will naturally be channel and information advantages.
As we all know, a new drug takes a long time and is complicated from research and development to launch. It must go through three stages: preclinical research/clinical research, clinical trials, and approval for launch. Yingke’s entry advantage in the biopharmaceutical industry is It is through investment that the three major entrances of clinical CRO, SMO (clinical trial base management organization), data statistics and registration have been laid out. Through a five-year layout, Yingke introduced Tigermed, China's largest clinical CRO company, to become Yingke's cornerstone investor, strategically invested in the industry-leading SMO (clinical trial) company Puriex, and held a controlling stake in biomedicine. Presun Medical Technology is a leading company in data statistics and registration.
Tigermed is a well-known clinical CRO company in China. Tigermed mainly performs clinical research outsourcing for Chinese innovative pharmaceutical companies. It has more than 600 customers around the world and occupies 80% of the CRO market share of domestic innovative pharmaceutical companies. , has become the "biggest entrance" to the clinical research stage. Through Tiger, Yingke can know for the first time which drugs have been developed and how effective they are, and then wait for the opportunity to take action.
The clinical trial stage is the most important and most expensive step in drug research and development. Based on the logic of occupying the "entrance", Yingke strategically invested in the domestic SMO (clinical trial site management organization) company Purisi at the end of 2015. "Pureus is one of the best companies engaged in SMO in China." Qian Mingfei introduced that this company that serves clinical trials has cooperated with multinational pharmaceutical companies Pfizer, Novartis, Roche, and AstraZeneca, as well as international CRO companies Quintiles, Covance, Parexel, PPD, Icon, etc. have in-depth cooperation. After Yingke took a stake in Purex, it gained first-hand data on the efficacy, side effects, and adverse reactions of the biopharmaceutical varieties under development, allowing Yingke to make precise investments in the biopharmaceutical industry.
Finally, in the process of drug approval and marketing, companies must entrust third-party data statistics and drug registration agencies to perform the execution. Presun is the leading organization in the industry, and Yingke Capital has invested heavily to control Puli. Ruisheng Company. “Through strategic investment, equity participation, and holding, the three leading institutions in drug research and development (CRO), drug clinical research (SMO), data statistics and registration are closely related and coordinated, and Yingke has launched a full industry chain investment model. The biopharmaceutical investment circle is becoming increasingly mature, making Yingke a leading biopharmaceutical investment institution," he added.
"We will not make general investments. With the information advantage of the entrance, Yingke can focus on making precise investments in the pharmaceutical industry." Qian Mingfei mentioned that in the past four years, domestic innovative pharmaceutical companies have Yingke has invested in 60 projects and has a market share of nearly 50%. "If I firmly grasp the three entrances, I will get the information earlier than the market, and at the same time I will have channels to invest." Qian Mingfei believes that this is the core reason for Yingke Capital's outstanding performance in medical investment.
Invest in "Innovation"
The movie "I'm Not the God of Medicine" deeply touched Qian Mingfei.
"One of the companies we invested in treats lung cancer. A course of imported similar drugs would cost more than 60,000 yuan, but domestic products with the same efficacy are less than a quarter of the price. This is a huge contribution to reducing patient treatment costs.
"He believes that directing more capital into the research of innovative drugs will not only bring considerable commercial returns, but also improve the overall health of the people.
This belief gave birth to Yingke's focus on medical health The logic of field investment puts "people" in the first place, that is, to achieve import substitution of certain innovative drugs and medical devices related to people's medication and reduce costs.
Yingke led the investment of 100 million yuan in medical devices. Hanyu Medical, the company's core product is the mitral valve interventional device ValveClamp, which is used for minimally invasive interventional treatment of mitral valve regurgitation disease. Currently, it is the only mature minimally invasive treatment of mitral valve regurgitation approved for marketing in the world. The only device available is Abbott's MitraClip, which has not yet appeared in China. In July 2018, Hanyu Medical's ValveClamp successfully performed the world's first clinical operation with transapical mitral valve clipping technology at Shanghai Zhongshan Hospital, and completed the last case before the end of the year. Exploratory clinical trial.
“This product has achieved a major breakthrough in my country’s independent research and development of mitral valve devices during surgery, and is expected to become the first approved mitral valve interventional treatment device in China. Qian Mingfei emphasized, "Yingke chose to invest because, first of all, the technology is very advanced, and secondly, the price is much cheaper than abroad." ”
Looking for the “future”
From an investment institution with a private background, it has grown into a leader in state-owned assets, listed companies and financial institutions vying for shares, and jointly participating in investment undertakings It took Yingke eight years to build an asset management institution. At present, Yingke has become a mixed-ownership enterprise with 30% stake in state-owned capital and financial institutions.
In 2015, Yingke Capital acquired Tigermed, Yongtai Technology, and Baidu. In 2016, a number of large financial institutions and listed companies became Yingke's LPs, including the pharmaceutical fund jointly established by Tigermed and Tofflon. There are three branches. In 2017, Shanghai Pudong Development Bank, Jinshui Group, Haiying Group and other banks and large state-owned enterprises strategically invested in Yingke Capital. In 2018, Yingke once again received the favor of capital. Qingdao Urban Investment Group and Qingdao Global Wealth Center strategically invested in Yingke Capital. In the following rounds of capital increases, Tigermed once again increased its holdings.
It is understood that Industrial and Commercial Bank of China, State Power Investment Corporation, Shanghai Pudong Development Bank, Industrial Bank, Ping An Bank, Bank of Hangzhou, Bank of Gansu, Shanghai Trust, Insurance Company, etc. Financial institutions, many local financial holding platforms, government platform companies, etc. are all LPs of Yingke Capital.
Qian Mingfei once mentioned to the investment community that Yingke no longer has a fund-raising department, but only a fund management center. , responsible for fund collection and fund establishment. There is no doubt that Yingke Capital has opened up a wide range of institutional funding sources.
In the future, medical health will still be the focus of Yingke Investment, including fundraising and investment. Investment. “Not only will Tiger continue to join the new fund being raised, but banks, insurance companies, and state-owned enterprises will also be involved. In 2019, the cumulative scale of biomedical funds may reach four, with a guaranteed scale of RMB 5 billion. Qian Mingfei was very sure, "The work has been almost done." ”
In addition, Yingke’s future core strategy is internationalization, guiding more international first-class investors to participate in investment in China’s outstanding industries, and becoming an important force in China’s economic development. At this stage, it is actively expanding overseas LP. “A U.S. dollar fund will also be established soon. We recently have a biomedical fund of 200 million U.S. dollars that will be completed soon. At present, large overseas institutional LPs and Fortune 500 companies are participating in fund subscriptions. "
The reason why he is so confident, Qian Mingfei said frankly, "Firstly, we have all good projects in our hands in recent years; secondly, judging from the exit situation, the exit IRR in 2018 alone reached 80. , this result is still very good. ”