Chinese radiopharmaceutical startup C Ray Therapeutics announced on Saturday that it has raised over $100 million in a Series A+ funding round to strengthen its technology platform and expedite the clinical development of pipeline drugs.
China’s 27.5-billion-yuan ($3.8 billion) National Manufacturing Transformation and Upgrading New Materials Fund, which state investor Shenzhen Capital Group manages, and healthcare-focused investment firm Tailong Capital jointly led the new investment, said the startup in a statement.
Hillhouse’s venture capital (VC) arm, GL Ventures, and Hong Kong-listed biotech firm 3SBio also participated in the deal.
Founded in 2021 and based in southwestern China’s Chengdu City, C Ray aims to build world-class radiopharmaceuticals, a specialised class of drugs containing radioactive isotopes. These drugs leverage the distinct energy-level rays emitted by different isotopes to either visualise or destroy tumours, making them applicable as diagnostic and therapeutic agents.
As modern medicine’s demand for precision diagnostics and treatment grows, radiopharmaceuticals have demonstrated significant potential across various fields, including oncology, cardiovascular diseases, and neurological disorders. Its market appeal saw US drug maker Eli Lilly acquire nuclear medicine developer Point Biopharma for $1.4 billion in 2023 and US-listed Bristol Myers Squibb pay $4.1 billion to buy radiopharmaceutical therapeutics (RPT) firm RayzeBio in early 2024.
Innovative radiopharmaceuticals have demonstrated “rapid development” in recent years with continuous breakthroughs in foundational, clinical research, and translational applications, and the industry in China is “steadily advancing,” a Tailong Capital representative was quoted as saying in the statement.
The radiopharmaceuticals market in China is projected to reach 9.3 billion yuan ($1.3 billion) in 2025 before expanding further to 26 billion yuan ($3.6 billion) by 2030, according to Shen Yanfeng, the president of China Isotope & Radiation Association (CIRA).
The Series A+ financing will allow C Ray to improve its core technology platforms, upgrade the high-throughput screening capabilities for innovative radionuclide-drug conjugate (RDC) drugs, and accelerate the clinical development of multiple R&D pipelines, said the startup.
Following the Series A+ round, C Ray will “accelerate the development of innovative radiopharmaceuticals, technologies, and service platforms that maximise patient benefits,” it said.
C Ray said it has entered “a critical phase of rapid development” after the successful launch of its Class A production base and the smooth progress in advancing investigator-initiated trials (IITs)/clinical trials, overseas business development, and CRDMO services.
With permits for handling over 30 types of medical isotopes, the startup has constructed 13 cGMP-standard radiopharmaceutical production workshops compliant with FDA, NMPA, and EMA regulations in the US, China, and the European Union, respectively.