Promoting High-Quality Development of the Industrial Chain · Venture Capital Record | Weikail has Entered the Fast Lane of Development, Innovative Drugs "Will See the Light After the Clouds Clear"

"Our original intention for starting the business was to develop innovative drugs and provide more choices for patients. As long as we can alleviate patients' suffering and meet some clinical needs, we feel it is meaningful." Dr. Gong Yanchun, co-founder and CEO of Jiangsu Weikaier Pharmaceutical Technology Co., Ltd. (referred to as "Weikaier").

Weikaier previously received strategic investments from institutions such as Nanjing Innovation Investment Group, which enhanced its already excellent R&D capabilities. "We believe Weikaier will quickly grow into a leading enterprise in the biopharmaceutical industry, contributing to the innovative development of Nanjing's new medicine and life health industry," said Yan Peng'an, head of the pharmaceutical investment team at Nanjing Innovation Investment Group.

　　Accidental entrepreneurship, bursting forth after a period of dormancy.

In 2010, after returning from France and nearing his PhD graduation, Gong Yanchun had some thoughts and struggles about where to work and what kind of job to pursue.

At that time, the best developments were in Shanghai, where many leading CRO companies (CRO refers to Contract Research Organizations, which provide specialized services to pharmaceutical companies and research institutions during drug development) were located, and large overseas pharmaceutical companies also had R&D centers in Shanghai, so he considered working there.

"However, thinking about it, as a graduate of China Pharmaceutical University, I still wanted to personally engage in drug development and bring a drug to market." Gong Yanchun recalls the past with passion.

Thus, in August 2010, led by Professor Sun Hongbin from China Pharmaceutical University, eight founders joined hands to establish Weikaier in the Pukou District of Nanjing, and the antiplatelet new drug project, Vicagrel, was launched the following year.

However, everyone underestimated the various difficulties of entrepreneurship. In the initial years of Gong Yanchun's entrepreneurship, there were not many venture capital institutions and funds entering the innovative drug industry because the risks of innovative drugs were relatively high, and most attention was still focused on generic drugs. The team approached several large pharmaceutical companies for collaboration on the innovative drug Vicagrel, but ultimately received no response. Therefore, in the first few years of entrepreneurship, Weikaier faced various funding constraints, which affected the pace of innovative drug development, and providing CRO/CDMO services through a technical platform could only barely maintain the company's operations.

Through hardships, success is achieved. In such a difficult environment, Weikaier still achieved milestone results, submitting the clinical application for Vicagrel in February 2014.

In March 2015, at a time of extreme difficulty for the company, Weikaier received a strategic investment of 150 million yuan from Yatai Group, which could support the company's innovative drug R&D expenses for three years, solving the company's urgent financial needs.

More fortunately, a turning point appeared in the innovative drug industry.

2015 was truly a year of pharmaceutical policy. In July of that year, the 722 incident shook the entire industry, followed by a series of pharmaceutical policies issued by the State Council, the National Medical Products Administration, and other departments, including centralized drug procurement, drug price reductions, drug reviews, and medical insurance systems, leading to a strong reshuffle of the Chinese pharmaceutical industry. The policy environment for innovative drugs in China continued to improve, releasing innovative vitality, and the turning point for the innovative drug industry finally arrived!

In the following years, Weikaier completed domestic Phase I and Phase II clinical trials for Vicagrel, but with the rapid depletion of funds, the larger funding gap required for Phase III clinical trials loomed before the team, while the subsequent innovative drug pipeline development also faced the risk of funding interruption. The external CRO/CDMO services were also limited by factories and funds, severely hindering development, and the team was in a state of extreme agony.

"Bamboo takes years to grow; the bamboo shoot can only grow 3 centimeters, and this 3 centimeters is still buried deep in the soil. However, once it breaks through the ground, it can grow at a crazy speed of 30 centimeters a day, reaching 15 meters in just half a month."

The growth history of Weikaier is very much like bamboo; the pain and trials of the first ten years forged a strong inner strength for the team and accumulated enough power, all in a state of readiness.

At the end of 2020, after the company completed its structural adjustments, a new situation opened up, with professional investors and funds beginning to pour in. The company's antitumor new drug VC004 project Phase I clinical trial was launched at that time. In March of the following year, the U.S. FDA allowed Vicagrel to conduct clinical trials under the 505(B)2 pathway. In July, the Phase III clinical supporting experiments for Vicagrel were launched at Jilin University, and in August, the third innovative drug VC005 project also received clinical implied approval from CDE and was about to start. In September, a new drug research and development center in the Jiangbei New District of Nanjing completed acceptance and was about to be officially put into use.

The rapidly developing Weikaier has become a favorite among investment institutions. In February last year, Weikaier completed a 200 million yuan Series A financing, led by State Investment and Development Corporation, with Nanjing Fengling participating. Four months later, the company received another strategic investment of 100 million yuan from Nanjing Innovation Investment Group, New Industry Investment, and Renpu Venture Capital.

　　With the support of venture capital, the new star of innovative drugs is gaining momentum.

Why was Weikaier chosen by Nanjing Innovation Investment Group?

Yan Peng'an, head of the pharmaceutical investment team at Nanjing Innovation Investment Group, stated: "New medicine and life health are one of the key landmark industries being developed in Nanjing. Nanjing Innovation Investment Group has identified the points of strength and breakthrough for the industry chain, continuously enhancing the competitiveness and visibility of Nanjing's new medicine and life health industry through equity investment. Weikaier has a strong R&D team with execution capability, a platform-based R&D system, a diversified R&D pipeline, and the ability to continuously promote innovative drug development, as well as comprehensive services for the entire drug industry chain. The company's various businesses are on an upward trajectory in the industry, and future development is promising. We believe Weikaier will quickly grow into a leading enterprise in the biopharmaceutical industry, contributing to the innovative development of Nanjing's new medicine and life health industry."

Weikaier places great emphasis on R&D, with over 80% of its employees being technical personnel, and more than 40% of employees holding a master's degree or higher, with continuous and rapid increases in R&D investment.

"The biopharmaceutical team at Nanjing Innovation Investment Group is very professional, and the due diligence process is detailed and accurate, helping us sort out many issues and providing constructive suggestions for the company's future development. The decision-making process is also very fast," said Gong Yanchun. After the funds came in, they could support the company in achieving better and faster development. For example, after obtaining funding, the innovative drug could quickly advance key clinical trials such as Vicagrel Phase III, and after receiving funds, the external CRO/CDMO services would also accelerate the acquisition and construction of its own factories, allowing the company's CRO/CDMO service sector to be more complete and refined.

Weikaier was born and raised in Nanjing, and Nanjing spares no effort in promoting high-quality development, with the company also experiencing tangible benefits.

"In fact, within our circle now, the entire investment environment in Nanjing is highly recognized. I know that many of our peers in Shanghai are gradually establishing their R&D centers in Nanjing, in the Jiangbei New Area, and in the Biomedical Valley." Gong Yanchun said that the city and district have provided substantial support to companies and the biopharmaceutical industry. "Even during the pandemic, we did not stop work or production, which is extremely important for innovative companies like ours. If we stop work or production, the speed of our innovative drug's key clinical advancement and the early-stage development of our drugs would be greatly affected."

Weikeer has cultivated and attracted numerous professionals, with four PhDs in the company who are recipients of Nanjing's Double Innovation Program, including three Double Innovation PhDs and one Double Innovation talent. Gong Yanchun said, "We believe that the investment environment in Nanjing and the Jiangbei New Area is very good and is quite suitable for innovative enterprises to settle and develop."

"In addition to financial assistance, the Nanjing Innovation Investment Group has provided many valuable suggestions regarding the company's positioning, development direction, and strategy." When mentioning the reasons for the company's rapid development, Gong Yanchun expressed deep gratitude.

After ten years of hard entrepreneurship, encountering the golden opportunity for innovative drug development, and receiving strong support from local governments, as well as comprehensive support from local venture capital institutions like the Nanjing Innovation Investment Group, the team led by Gong Yanchun is getting closer to the dream of launching innovative drugs.