Third, the first phase of fund investment by Huige Capital in 2017 also happened to catch up with the first year of this good era. On October 8, 2017, with the "About Deepening the Reform of the Review and Approval System to Encourage Drugs" jointly issued by the two offices of t

In July 2020, Waige Capital’s third fund was registered with the China Fund Management Association, and the industrial and commercial registration of the fourth fund was launched at the same time. It is about to start the second three-year investment period for innovative medical and pharmaceutical investments. Mr. Wang Kai, head of Huaige Capital, told Arterial.com: “I am very grateful to the current fund investors and every employee of Huaige Capital for overcoming many difficulties during the epidemic and completing fund raising and filing registration, which also fully reflects LP’s support for Huaige Capital. the trust and confidence of LEG Capital.” Waige Capital has a professional team in pharmacy, chemistry, clinical medicine and investment banking. The keen discovery ability of high-quality projects and the comprehensive post-investment resource integration and service capabilities are the core of Waige Capital. In the past three years, Many of the 13 invested companies have developed into industry leaders.

Hunter: Everyone gathers firewood and seizes the opportunities of the times

When asked about the origin of the name of Huaige Capital, Mr. Wang Kai told Artery.com that "Huai" comes from the distant and close collections, and "Ge" comes from the study of things to achieve knowledge. To put it simply It is to unite friends and partners from far away and around us to achieve the ultimate goal of medical and pharmaceutical investment. In 2016, Mr. Wang Kai spent a year doing research and conducted a lot of research and discussions with professional fund investors, entrepreneurs, listed companies, investment banks, etc. in the medical and pharmaceutical fields. After understanding the challenges faced by various participating entities, In the process of dealing with the relevant pain points and problems, the investment framework and positioning created by Huige Capital was gradually formed. Based on the concept of symbiosis, win-win and mutual development, in 2017, the team was recruited and the first fund of Huige Capital was raised—— Wyger shared the same belief.

Mr. Wang Kai, founder and managing partner of Waige Capital

How to establish a pattern of everyone picking up firewood and seize the opportunities of this era?

First, open up the LP composition of Huaige Capital. Take Huaige Capital as an example. Among the LPs, there are many A-share listed company platforms, medical and pharmaceutical industry founders, securities direct investment companies, trust companies, and investors with medical and pharmaceutical marketing resources. People, etc., in the past three years, Huige Capital has completed the pre-IPO guidance for 4 invested companies and assisted in the selection of IPO intermediaries (one IPO has been listed, and the other three have been submitted to the China Securities Regulatory Commission Submitting or preparing to submit IPO application materials), completed the merger and acquisition of an invested enterprise and an A-share listed company, promoted and completed the issuance of the first domestic medical supply chain collective fund trust plan and used it for the hospital receivables of the invested enterprise Account asset securitization, assisting three invested companies in optimizing and adjusting their R&D pipelines through in-depth market research, integrating marketing resources to establish a market layout system for two invested companies after product certification, these work achievements and the establishment of a joint venture with the invested companies The good cooperative relationship is inseparable from the LP ecosystem established by Huige Capital.

Second, research on the team of Waige Capital. The founder and managing partner, Mr. Wang Kai, has been engaged in investment banking and investment work for more than 20 years. He has invested in and promoted a number of small and medium-sized enterprises to go public or be acquired. He is very clear about the transition from start-ups to To become a unicorn in a niche field, what steps need to be completed, what external resources should be injected, and how to build product and market barriers; Dr. Du Jiangbo, partner and head of pharmaceutical investment, graduated from the Shanghai Institute of Materia Medica, Chinese Academy of Sciences, and has participated in 3 countries Preclinical research and clinical development of Class 1.1 new drugs (tumor, autoimmune fields); Dr. Yang Kun, head of medical device investment, graduated from the Institute of Physics and Chemistry Technology, Chinese Academy of Sciences, and has more than ten years of combined experience in medical device R&D and venture capital. ; Partner and head of investment bank Mr. Fang Shengshi graduated from Lixin Accounting Institute, certified public accountant, lawyer, certified tax accountant, and has many years of experience in auditing IPO companies; Dr. Cheng Zhengjie, head of clinical medicine, graduated from the Huashan Class of Clinical Medicine at Fudan University, formerly Huashan Hospital doctor. After nearly three years of working together, the team has reached a tacit understanding of being able to quickly break down tasks and provide different professional perspectives for analysis and judgment at the beginning of contact with potential targets.

Third, the first phase of fund investment by Huige Capital in 2017 also happened to coincide with the first year of this good era. On October 8, 2017, with the " on deepening the reform of the review and approval system" jointly issued by the two offices of the Central Committee With the implementation of the Opinions "" on Encouraging Innovation in Drugs and Medical Devices, China's medical and pharmaceutical investment has entered a golden decade. More and more Chinese scientists have returned to China to start businesses, gradually filling the gaps in the medical and pharmaceutical innovation industry chain. The era of complete imitation has gradually passed, and from fast follow First-in-class innovation becomes possible. The continuous optimization of the regulatory environment for approval of medical devices and innovative drugs in China and the increase in per capita income levels have driven the continuous upgrading of medical demand and stimulated huge incremental demand. In the past few years, many remarkable business achievements have been created .

Mr. Wang Kai believes that when investing in such a general environment, it is very important to grasp the correct rhythm. Combining projects at different stages of development can increase the overall return of the fund; combining projects at different links in the industrial chain, Help each other grow.

Vision: Smooth rhythm, focus on investment portfolio

Mr. Wang Kai told Artery.com that from the perspective of asset management, LPs only focus on one core, the absolute return rate of a single period of funds, while GPs focus on two cores, each period. The fund’s absolute rate of return and sustainable investment management capabilities. Therefore, there are two issues that need to be considered clearly in advance. First, the asset portfolio allocation strategy, that is, what strategy should be established for the early, middle and late investment portfolios of each fund, which is more conducive to improving the absolute rate of return of the fund; second, , the sweet spot of investment intervention, from the perspective of risk-return rate, when is the best time window to choose to invest in different subdivision tracks.

For Huaige Capital, the first question mentioned above is clearly defined internally by Huaige Capital for each phase of the fund. Each phase of the fund invests in relevant investee companies that plan to exit through IPO, plan to exit through mergers and acquisitions, or plan to exit in alternate rounds. Their respective fields, investment proportions, number of projects, etc. are all established internal allocation strategies after the establishment of the fund;

Regarding the second question above, the investment strategy of Huige Capital is also in the process of continuous optimization. To sum up, there are two points. From 2017 to 2020, in the fields of medical devices and medical and pharmaceutical outsourcing services, Huige Capital prefers mid- to late-stage investments. There is basically a clear IPO timetable before investment, such as in the intervention field. Kindly Medical, Corfu Medical in the field of home medical devices, Besta in the pharmaceutical clinical outsourcing service CRO field, etc.; in the fields of innovative drugs and biological products, Huige Capital prefers early- to mid-term investment, and its R&D progress reaches or even Invested companies that have exceeded expectations have continued to increase their positions significantly, such as Verizhibo in the field of tumor immunology drugs, and Zhongyi Anke in the field of influenza vaccines and COVID-19 vaccines.

From 2020 to 2023, Waige Capital will appropriately adjust the above strategies and move the investment period to the early to mid-term in the field of medical devices and medical and pharmaceutical outsourcing services. The degree of category innovation of medical devices, especially interventional devices, is getting higher and higher. As surgical methods and volumes become more and more popular, the ecosystem of Wygo Capital will be more capable of assisting early-stage innovative companies to achieve better and faster development; in the field of innovative drugs and biological products, Wygo Capital will expand its investment period to mid-term In the later stage, the team of Waige Capital and surrounding partners will also have the professional ability to identify high-quality enterprises and assist innovative enterprises in different periods to formulate the best path for industry and capital to advance together.

Future: In-depth research to seize the opportunity for high-quality tracks

In recent years, multinational medical companies have launched innovative models to participate in China's biopharmaceutical investment through their investment institutions. Eli Lilly Asia Fund, which has long been active in the domestic investment circle, continues to increase its investment, and Sanofi and Boehringer Ingelheim have also launched similar industrial investment plans this year. In fact, looking at global biomedical venture capital institutions, well-known multinational medical companies such as Johnson & Johnson, Pfizer, BMS, Novartis, and Bayer have already extended their investment tentacles to projects that are still in the early stages. The first and fourth phase funds also adopted this industrial investment idea.

Mr. Wang Kai told Arterial.com that in-depth research capabilities will determine excellent investment capabilities in the future.Today we see that some core products that have been fully exploited by investors have been highly recognized by the capital market, causing many companies engaged in such products to obtain high valuation levels. With the leading position in the field of medical device implantation Take products as examples, such as valve product lines in the field of intracardiac implantation, thrombectomy stents, suction catheters, dense mesh stents and other product lines in the neurointerventional field to treat ischemia or bleeding.

We have already seen the crowded competition situation in some tracks. Should we change the angle and conduct in-depth research or explore some innovative products that may not be popular yet but have clear market demand? This requires a global perspective, closely tracking changes in the clinical aspects of global new products, and targeting suitable target companies based on China's needs. interventional surgery has been used in five areas: intracardiac, neural, peripheral, tumor and cavity. There are still many application scenarios and product types worthy of study. As long as you work hard, I believe you will be rewarded. For example, Huige Capital has recently tracked the vascular intraluminal imaging system, intravascular shock wave balloon and other product directions in the field of interventional surgery.

"Think far away and gather close together, and study things to gain knowledge." Mr. Wang Kai told Artery.com that in three years, Huige Capital hopes to invest in 10 companies with a combined market value of more than 100 billion, and he and his team will always be on the road.