China Zhongji Investment participates in a new round of financing for "Lewi Pharmaceutical", laying out the small molecule innovative drug CDMO field
Recently, China Zhongji Investment completed a Series C equity investment in Luowei Pharmaceutical, a CDMO company specializing in small molecule innovative drugs. This round of financing raised nearly 500 million yuan, led by Yingke Capital, with participation from China Zhongji Investment, Huayi Capital, October Capital, Jiangsu Huarui, Xingzheng Innovation, Yinglian Fund, Yueshi Investment, Zhongcheng New Industry, and Pingtan Yihe. The funds will primarily be used for the construction of the CDMO base project in Cangzhou, the construction of the new drug R&D and GMP production base project in Hefei, and the construction of the Shanghai Innovation Accelerator Laboratory.
Established in October 2005, Luowei Pharmaceutical is headquartered in Jiangsu and specializes in providing outsourced services for the industrialization of innovative pharmaceuticals. Its services cover the entire process from laboratory to industrialization, including process development, optimization, pilot testing, and large-scale production from pre-clinical to post-market approval stages. In 2015, the company completed its shareholding system reform and has established R&D centers, production bases, and overseas business centers in multiple locations worldwide. The customized R&D and production services for innovative drug intermediates are further divided into customized R&D services and customized production services. Together, these form the interconnected business of Luowei Pharmaceutical and its subsidiaries, primarily serving the pharmaceutical manufacturing industry. Customized R&D refers to providing customized R&D services such as process development, quality research, and safety research for innovative drug intermediates, mainly provided by Tianjin Luowei. Customized production refers to providing non-GMP pilot R&D and customized production services for innovative drug intermediates, including non-GMP pilot R&D and production services in the technology development stage and industrialization production services in the commercialization stage, mainly provided by Luowei Pharmaceutical. Both services are high value-added, helping to reduce R&D and production costs for pharmaceutical companies, effectively control R&D risks, improve R&D efficiency, optimize the supply chain, and bring new products to market faster. Drugs can be classified into innovative drugs and generic drugs based on their life cycle. Luowei Pharmaceutical mainly serves the innovative drug sector, particularly providing customized R&D and production services for new molecular entities. Currently, Luowei Pharmaceutical handles over 100 projects annually, covering therapeutic areas such as oncology, central nervous system, and metabolic systems. It has established long-term strategic partnerships with numerous well-known global innovative pharmaceutical clients. The pharmaceutical CMO/CDMO industry is a highly market-oriented, perfectly competitive industry. Globally, the service targets of pharmaceutical CMO/CDMO companies are primarily pharmaceutical and biotechnology companies in developed regions such as Europe, America, and Japan. Currently, CMO/CDMO companies worldwide are mainly concentrated in Europe, America, and Asia, with those in the Asian market mainly located in China and India. China, with its competitive advantages in talent, infrastructure, and cost structure, has increasingly become the preferred strategic outsourcing destination for multinational pharmaceutical companies. The Chinese pharmaceutical CDMO market has maintained a growth rate of over 20% in recent years. In 2020, there were over 800 small-molecule drugs under clinical investigation in China, indicating a huge market potential. Mr. Chen Wenting, Chairman and Founder of Luowei Pharmaceutical, stated that with the advancement of the globalization of pharmaceutical R&D, the horizontal development of multinational pharmaceutical companies—transforming from pharmaceutical companies to treatment companies and further into health management companies—will place increasingly higher demands on the capacity and technology of outsourcing companies; the advancement of precision medicine will also place increasingly stringent requirements on pharmaceutical development and manufacturing; and the changing landscape of human diseases means the future division of labor in CDMO will become increasingly refined and standardized. This presents excellent development opportunities for Luowei Pharmaceutical.
