Shanghai Biomedical Fund II Closes RMB1.5 Billion First Tranche, Targeting IND-to-Phase II Assets

Shanghai Biomedical Fund II has completed a first close of RMB1.5 billion, with Shangshi Capital serving as fund manager. Investors include Shanghai Pharma, Shanghai Pharma Group, Shanghai Guotou Xiandao, Pudong Venture Capital, Guotai Haitong, Junshi Biosciences and Zhangjiang Group, among other industrial leaders and professional investment institutions. The second fund targets innovative assets at the IND to Phase II clinical stage, linking the first fund and the M&A fund to form a full-cycle investment layout covering source incubation, early-stage clinical, later-stage clinical and listing, and M&A integration. Shangshi Capital manages 25 funds with cumulative assets under management of approximately RMB34.5 billion, and has invested in nearly 200 companies. In the life sciences sector, it has invested in more than 70 companies with cumulative investment exceeding RMB11 billion, of which 75% were lead investments. The first fund made two consecutive rounds of investment in ADC/bispecific antibody company Shanghai Lixin Medicine, which was acquired by China Pharma in 2025. Its investment in Shanghai Meixin Health extended from strategic equity participation to capital cooperation in the medical industry chain. As of the end of 2025, Meixin Health had cumulatively covered 480 million policies, with total medical payments exceeding RMB50 billion. The Shanghai Biomedical M&A Fund, established in 2025, was initiated by Shangshi Group and managed by Shangshi Capital, with an initial scale of nearly RMB5 billion. Investors include a municipal-level mother fund, financial institutions, regional platforms and industrial parties, with Shanghai Pharma committing RMB1 billion, and Dongfulong, Junshi Biosciences and Meixin Health committing RMB200 million, RMB100 million and RMB100 million, respectively. The fund completed three investments in the nine months from March to the end of 2025, including assisting Shanghai Pharma in acquiring Shanghai Hutchison, making a strategic investment in MicroPort, and strategically acquiring Kanghua Biotech. Kanghua Biotech announced the transaction at the end of July 2025 and completed the closing in November. The M&A fund team conducted an on-site due diligence with nearly 10 people within a three-month window, and promoted integration along five main lines: governance improvement, R&D upgrade, marketing transformation, lean management and capital operation. In early 2026, Kanghua Biotech announced a step-by-step acquisition of Nameixin Bio, gaining its technology system covering antigen and sequence optimization design, delivery systems and lyophilization processes. In the first quarter of 2026, Kanghua Biotech's revenue grew 25% year-on-year, net profit attributable to shareholders rose 32% year-on-year, and operating cash flow turned positive. A Phase I clinical trial of its recombinant hexavalent norovirus vaccine was initiated in January, the IND for a quadrivalent meningococcal conjugate vaccine was approved on March 13, and Nameixin's mRNA pipeline entered Phase II on May 29. Kanghua Biotech recently initiated, as an industrial party, the establishment of the Sichuan Revitalization Biomedical Industry Investment Fund, jointly with Shangshi Management Consulting and Chuan Venture Capital as double general partners, with participation from the Sichuan Advanced Manufacturing Investment Guidance Fund and others.