Venture capital Chen Jie: medicine, how to step on the new deal?
2015-10-21 17:29:35 作者:SystemMaster 来源:
Takeaway: in investment circles, usually from angel ABCD turn round, pre-ipo dividing investment enterprise development stage, and finally to mergers and acquisitions or listed as a marker of success. But in the field of process longer and more medical approval node, stage division and success of the project have their own different industry standards.
Biological nanometer science and technology park is located in suzhou industrial park, suzhou, is becoming a medical investment institutions supply project library. More than ten thousand higher professional personnel and more than 400 scientific and technological innovation in enterprise gathering here, a park official home page from time to time, push the news of the project financing, and the vc database IT orange domestic healthcare company, a total of only 684.
In the same office, yuan venture, focus on health investment in the project quite a head start in the competition. The yuan gave birth to venture capital investment by 15 companies, half from biological nanometer garden in suzhou. The scale of the first 540 million yuan funds, in the creation of one and a half years have been cast out of close to 60% of the amount, the investment returns of the project has been more than 40% last year.
Behind the project investment, and a deeper connection between the two. "Suzhou garden is the core of our biological nanometer funders, fund is one of the sponsors. On the one hand, suzhou biological nanometer garden need to have a lots of good project funds, funds, there is keen competition on the other hand, have to market-oriented operation." Yuan vc founding partner kit said.
In taishan, telford investment institutions such as biomedical investment approach was chosen together by yuan venture capital, is considering the funds behind the platform edge.
Biological nanometer garden, in addition to suzhou yuan raw throws the LP also includes some of the suzhou local property, private enterprises, some female with health pharmaceutical industry funds and individuals. And in research and development production period is relatively long medical health field, the initial operation period for seven years (four years investment + out three years period of the new fund, clearly needs more original flexible exit mechanism.
Focus on the potential more early in the project
Bullish on project subsequent value-added space, yuan venture at present most of the cast is early in the project. But different from the Internet at the early stage of the project fast start, low input in the medical investment, even if it is early in the project, each the size of the case is not small. The yuan have vc 15 projects have cast around 300 million, a project of investment in about 30 million to 50 million yuan between, some earlier some of the items, angel investment from 10 million to 20 million yuan or so.
In investment circles, usually from angel ABCD turn round, pre-ipo dividing investment enterprise development stage, and finally to mergers and acquisitions or listed as a marker of success. But in the field of process longer and more medical approval node, stage division and success of the project have their own different industry standards.
"21st century" : born yuan venture have any choice on project phase?
Some kit: we fund positioning is making some of the early medical treatment project, there are also some less pre-ipo project, but most still in development stage, is a period of clinical and preclinical, medical apparatus and instruments are also declare the clinical stage.
Part at the same time, we also have technical features, the scale is small and income in an enterprise, this belongs to the high speed growth, drive revenue by technology. Now because there are new three board, strategic emerging board that does not require income can also be listed on the channel, so we are not listed or not as a judge, but pay attention to enterprise development cycle. Basically we vote or early developing stage of enterprises, so that its follow-up development faster and higher potential.
"21st century" : in the field of medical treatment, how to differentiate different stages of enterprise development?
Kit: medical pharmaceutical enterprises, especially such as drugs, medical devices, unlike the Internet enterprise, into the threshold of the much higher. Do drug research and development, for example, the past is likely to be ten years to $1 billion, now some domestic high efficiency, low cost, but the threshold is very high. Preclinical studies, to obtain a national approval of clinical to finally have the manufacturer to produce. So the threshold from the time and resources into the above are higher than the Internet. But its advantage is that, if he really walk to finally succeeded, because of the high threshold, there would be fewer people come in competition with you, you will get the relative profits, return is also very good.
Health care is not a single path to success
"21st century" : in the medical field, how to define the project success or not?
Kit: success in our industry now there are many kinds of definitions. State food and drug administration recently has some new policies, on the clinical application, license system of the drug production, management of the links such as there are a lot of new measures to solve the past more than ten years have not been able to solve the problem. In this way, can let a project success has a variety of ways, is not necessarily the final listing of companies or drugs in order to be successful.
Originally there is a successful way is to transfer, such as to the issue of clinical drug development, and then transferred to other companies, so the late production, sales, profits likely won't enjoy it. Now the latest policy allows drug research and development institutions licensed to another enterprise production, so a drug research and development team as long as a new drug certificate is a kind of success, but no longer need to production approval documents, the Chinese have a lot of production capacity of enterprises can choose to authorize. Sales, too, can look for another company in charge, this is a new model in China.
"21st century" : medical project cycle is long, but is born yuan fund also is not very long, the time limit yuan gave birth to venture capital exit on time?
Kit: in fact for investors, too, there are many means the success of the project, there are all sorts of investors out of way. After the first is that project done the research and development, can be transferred to other enterprises, in the process, if have a high premium to upfront investment, you can quit. The second is, drug research and development in foreign countries are constantly input, cast round first clinical trials, phase ii clinical cast round, phase iii cast round... Constantly into it, in this process, as long as the premium space is enough, we can also keep the shares transferred to the next round of investors. The third is the gem, the new three board, such as strategic emerging board listed out.
In time, we in the choice of the project, some projects will be in clinical to cast, so you don't need ten years to research and development, may be the whole through five to six years, and can get a satisfactory value, then returns may be dozens of times. Other in clinical stage, clinical two period of time, time will not long. Other medical apparatus and instruments and the clinical application of the latest gene sequencing, now this time will be much shorter project, because he do clinical research time is relatively short, so we will have some layout. Occasionally we will throw a few relatively early, haven't been able to determine the candidate drugs, this once he do certain medications, or on the clinical, then the value of this project has turned over five times, ten times.
Focus on technology to reduce risk
Next year, the second phase of the fund, kit for yuan venture capital returns very optimistic expectations. Yuan gave birth to the previous investment do suzhou for prostate cancer develops the pharmaceutical industry has just won a $ten million investment, compared with the previous round has an ideal, the growth of another project borui biological has just completed a round of more than two thousand dollars in financing. Do long-term diabetes medicine union, has received good digital first clinical trials, many were just talking about the next round of capital raising. In addition, yuan survived with tencent, fosun threw an American Scanadu mobile medical equipment company, their products are a small medical equipment, on the forehead above 15 seconds, the phone will know your blood pressure, heart rate, blood oxygen saturation, temperature and so on, then you can transfer to the doctor. "The next step is to set up a company in China, our investment will help the company to open business in China, believe that China's consumers will like such a cool things." Kit said.
"21st century" : now what funds measure return?
Kit: our fund is just founded in 2013, now is the first stage, most of the project is currently in the year 2014. We have done a calculation, for the next round of the project according to the new value, not to the next round of according to the original price, we return now is more than 40% a year, after all, is now over 60%, so the whole fund returns probably we have some preliminary judgement, we think that in 4 to 5 years to do 4 to 5 times. Medical projects is not like some of the Internet is hundreds of times what returns, but we are more stable, the success rate is quite high.
"21st century" : on the specific types of projects, which areas will have more?
Kit: in medicine this we will choose some project called "me with me better. In view of the foreign latest targets, drug, multinational drug companies might have verified the drug, Chinese returnees team or entrepreneurial teams, do some improvements and changes in the above, the risk of failure, it is not so big. This class of drugs is the innovation on the one hand, there are a lot of market advantage in the future, at the same time the clinical risk of failure is small. So no matter from the clinical point of view or the capital market point of view, everyone is bullish on this field, so we also do the field more layout, now cast in three projects, almost added up to 80 million.
Our strategy in the field of medical equipment is also similar, choose threshold higher import substitution. Such as biological valves, Chinese companies now have some very old, but the quality is not a good product, we just look have now domestic companies can do it with the international level of multinational companies, the future will be tilted in the public bidding, policy.
Fund, we still have another layout is the clinical use of the gene sequencing, now called accurate medical, this has been from the government in the United States to startups are underway, and have certain climate. We layout too early, now several projects such as admera and suzhou road and capital are obtained.
"21st century" : yuan attention were all popular project, in the process of attract the target, compared to other health funds, yuan gave birth to the advantage of the venture capital?
Kit: our characteristic is based on the biological nanometer garden in suzhou, relying on biological nanometer garden as a platform, and then across the country and around the world come into contact with the best project to invest. On the other hand also in the country and the world we see project, will also see good project to introduce some biological nanometer garden. Suzhou biological nanometer garden this year plans to introduce several projects, through the introduction of our side in the past.
Investment in new drug research and development of spring is coming
"21st century" : what are the recent state in the medical field is worth to pay close attention to the new policy? For medical investment will produce what kind of impact?
Kit: country really attaches great importance to the development of medical pharmaceutical industry, state food and drug administration in recent two weeks announced some new policies, especially in new drug research and development, for examination and approval of generic drugs, and other fields.
A is a major disease will speed up our outpatient department, examination and approval of drugs. Like cancer drugs, the original approval documents to apply to clinical, the average waiting time is more than 15 to 18 months, now the country has made a big change, a cancer drug approval documents to apply for clinical records, to the United States food and drug administration to emulate. Now only apply to the state food and drug administration, the state food and drug administration in 60 days have no objection, you can start on clinical, completely according to the American way to do it, will greatly shorten the time. In addition to some nations as the innovation of the major diseases medicine will also set up a green channel, it brings a huge opportunity, for us as hit early project funds, investment return period is shortened, the efficiency of funds will increase.
Including medical license system, allowing development and final production can not the same companies, the pharmaceutical research and development enterprise is not necessary to build a factory and the waste of resources will not repeat and, to our investment efficiency is also improved. These two policies, for our medical investment is equivalent to a new spring is coming.
The 21st century ": under the new policy, for a specific project opportunities in where?
Kit: the new drug research and development is a positive, but for some segment of the market is bearish. Such as the original country has dedicated a generic drugs, but the country may to 3.1 is not advocated and encouraged, to the original do some special class 3.1 generics companies will have some impact. And after examination and approval of generic drugs on the one hand, a lot of backlog, on the other hand the original examination and approval of the lack of some standard, now the new policy requirements to do bioequivalence test can be listed. For some high technical level of the generic drug companies can have benefits, it can speed up the review, the other can also speed up the listing. But to reach the quality standard of the enterprise, even listed on the approval documents before, now can also go back, so the quality is poor, research and development ability of enterprises can make a big impact, will eliminate a large number of poor level of generics firms.
From an investment perspective, the original some investment funds, will throw some level not high but relatively large size of enterprise, under the new policy, will produce very big impact on their input mode, must be adjusted.