18 August 2021
In March 2021, Zhejiang Innoforce Pharmaceutical Co., Ltd. (Innoforce), a biopharmaceutical company backed up by innovation and partnership cooperation, announced the completion of its RMB 625 million Series A financing. This is another milestone for the Company after its RMB170 million Pre-A financing in June 2020.
This round of financing was jointly led by South China Venture Capital (SCVC) and Yanchuang Capital and was actively followed by Quan Capital Management and several other well-known enterprises. JunHe acted once again as Innoforce’s legal counsel, after its Pre-A financing last year, and provided legal services to effectively complete this round of financing.
Innoforce is a key enterprise in the Hangzhou Bay Biotech Valley and has established global product development and biopharmaceutical manufacturing capabilities to facilitate the development and commercialization of innovative medicines. The raised funds will accelerate the construction of Innoforce's campus in Hangzhou, China, and provide global GMP biopharmaceutical production capacity. This includes the establishment of cell and gene therapy production and monoclonal antibody production facilities in partnership with Thermo Fisher Scientific. The company's business model will accelerate the development of innovative medicines and their commercialization in China, the U.S. and Europe.
Innoforce will continue to establish biopharmaceutical ecosystems, providing tailor-made drug development, operations management and other services to their partners, as well as extensive support for start-up companies.
The complexity of the project lies in: (1) the large number of investors – there were seven investors and 13 investment entities; and (2) the involvement of RMB capital and US dollar capital, and the entire transaction was divided into different rounds of delivery. The project’s working group assisted the company in negotiating with the two leading investors while considering the opinions of many investors. The project’s schedule was very tight and there were differences between the interests and concerns of the investors. JunHe assisted the company in analyzing the interests of the investors, determining the optimal negotiation strategy, and designing the financing transaction structure. On the day of signing the transaction documents, the first round of financing transaction was completed, which was fully recognized and praised by the clients. Prior to this round of financing, JunHe had assisted Innoforce to complete their Pre-A round of financing.
Under the agreements, the partners will form a Sino-foreign joint venture, which will operate with a total expected cost of approximately one billion RMB. The complex venture will produce products that serve the growing demands of various industries in China, including packaging, transportation, building and construction, healthcare and hygiene.
The leading partners of this project were Mr. ZHU, Jian (James J. Zhu, Ph.D.), Mr. CHEN, Jiang (Joe) and Ms. ZHANG, Hong.
For further information, please contact:
ZHANG, Hong, Partner, JunHe
Zhang_Hong@junhe.com
