In the past year, under the pessimistic environment of the venture capital market as a whole, PCG Capital has maintained good achievements in fund-raising, investment and withdrawal: 8 billion yuan was raised, nearly 60 investment projects were invested, and the withdrawal projects were 14, with an IRR of 42.27%. Compared with 20 17, PCG not only has an advantage in the total amount of funds raised, but also has a great leap in the quality of projects. More than 90% of strategic star projects have investments.
In the field of medical and health care that money is proud of, it also ushered in an outbreak. By the end of 20 18 and 12, the scale of the fourth phase medical fund of PCG Capital was nearly 5 billion, and it invested in over 60 biomedical projects, and 80% of them withdrew from IRR in just 20 18 years. Kang Hua Bio, Zejing Bio, Sanyou Medical, Weikang Bio, Jiahe Bio, Prius ... all these heavyweight projects in the biomedical industry are included in the PCG map. Among them, Zejing Bio and Prius 20 18 partially withdrew, with IRR of 58.92% and 157.5 1% respectively.
The brilliant performance of the medical fund made Qian Feiming more confident in his 20 19 investment. "In similar funds in China that mainly invest in biomedicine, PCG's performance is in the front. Of course, this is an incomplete statistic. However, we should have laid out strategic heavyweight projects in the industry, and even some projects have won the position of important shareholders. " Qian told people in the investment community.
Qian Feiming, founder and chairman of Pacific Century Capital
Show "cards"
It is not an exaggeration to use 20 18 to describe the investment in medical and health fields.
The arterial network report shows that there were 14 10 investment and financing events in the world last year. When the number of investment and financing events continued to drop from 20 16 to 20 17, it bottomed out and exceeded the historical high. The total investment and financing reached $3880 1 billion, up 70.79% year-on-year, maintaining the rapid growth trend in the past few years.
There are many people who enter the game, and there are many people who break the halberd. Pacific Century Capital is one of the few institutions that can grasp the head projects in all segments of the track.
Pacific Century Capital's investment in medical and health fields began on 20 14. At that time, China's medical and health expenditure only accounted for 5.56% of GDP, ranking 123 among the world's 150 countries and regions, with huge room for growth. Seize the opportunity, PCG Capital broke the initial mixed business model and gradually focused on medical and health care, but only invested in a few scattered projects.
On 20 15, Tiger Medicine became the cornerstone shareholder of PCG Capital. This well-known CRO enterprise in China not only invested capital, but also brought a lot of resources. PCG began to carry out all-round and industrial chain layout. It is understood that Pacific Century Capital has grasped Tiger's import advantage in the biomedical industry and set up several biomedical funds of nearly 5 billion yuan, with a total investment of over 60 projects, including over 20 projects in 20 18. Some head companies have been born in the three major tracks of biomedicine, medical equipment and medical services bet by PCG Capital.
Kang Hua Bio is the second manufacturer of domestic diploid rabies vaccine in the world and the only one in China. Qian described it as "a medical enterprise with core technology, a project beneficial to human health and a good investment". In August of 20 16, PCG Capital invested 230 million yuan to become an important shareholder. In that year, the company's profit was only 6 million yuan, the net profit in 20 18 was nearly 200 million yuan, and it will double in 20 19.
From 2065438 to April 2006, PCG invested in Zejing Bio, focusing on the research, development and industrialization of eight new drugs for treating tumors, bleeding and blood diseases. At present, two distinctive core technology platforms have been successfully established, and three national "major new drug creation" projects have been undertaken successively, and more than 40 invention patents have been authorized by the United States, the European Union and China.
Weikang Bio is a high-tech enterprise specializing in the research, development, production, application and product service of probiotics and its derivatives. It has more than 3,000 strains of China unique probiotic strains with independent intellectual property rights.
Establish an "entrance"
For today's Yingke Capital, the excavation of these high-quality projects is based on the layout of the entrance. In Qian's view, it is very important to master the "best entrance" for investing in the highly professional medical field. With the advantage of entrance, there will naturally be the advantages of channels and information.
As we all know, a new drug takes a long time from research and development to market, and the process is complicated. It must go through three stages: preclinical research/clinical research, clinical trial and marketing approval. The advantage of PCCW in the biomedical industry lies in the investment in SMO clinical CRO, data statistics and registration. Through five years' layout, PCCW has introduced Tiger Pharmaceutical, the largest clinical CRO enterprise in China, to become the cornerstone investor of PCCW, Prius, a leading SMO (clinical trial) enterprise in strategic investment industry, and to hold Prius Medical Technology Company, which is in a leading position in biomedical data statistics and registration.
Tiger Medicine is a famous clinical CRO company in China. Tiger mainly does clinical research outsourcing for domestic innovative pharmaceutical companies. It has more than 600 customers around the world, accounting for 80% of the market share of CRO, a domestic innovative pharmaceutical company, and will surely become the "biggest entrance" for clinical research. Through Tiger, PCCW can know which drugs are first developed and how effective they are, and then wait for an opportunity to take action.
Clinical trial stage is the most important and expensive stage in drug research and development. Based on the "entrance" logic, PCCW strategically invested in Prius, a domestic SMO (clinical trial base management organization) at the end of 20 15. "Prius is an excellent company engaged in SMO in China." Qian introduced that this company, which serves clinical trials, has deep cooperation with multinational pharmaceutical companies such as Pfizer, Novartis, Roche and AstraZeneca, as well as international CRO companies such as Kuntai, Covens, Parraise, PPD and Icon. After PCG invested in Prius, it mastered the first-hand data of the efficacy, side effects and adverse reactions of the biomedical varieties under research, so that PCG can accurately invest in the biomedical industry.
Finally, in the process of drug approval and listing, enterprises must entrust third-party data statistics and drug registration agencies to implement it. Presun is the head organization of the industry, and PCG Capital invested heavily in holding Presun Company. "Through strategic investment, equity participation and holding, the three head institutions of drug research and development (CRO), drug clinical research (SMO), data statistics and registration are closely linked and coordinated, PCCW opens the investment mode of the whole industry chain, and the biomedical investment circle is becoming more and more mature, making PCCW the head institution of biomedical investment," he added.
"We generally don't invest. With the information advantage of the entrance, PCCW can focus on the precise investment in the pharmaceutical industry. " Qian Feiming mentioned that in the past four years, the domestic innovative pharmaceutical company Yingke invested in 60 companies, with a market share close to 50%. "If the three entrances are firmly grasped, then I will get information before the market and have channels to invest." Qian believes that this is the core reason for PCG Capital's excellent medical investment.
Investing in "innovation"
The movie "Survival Desire" touched money very much.
"We invested in a company that treats lung cancer. If similar drugs are imported, a course of treatment costs more than 60,000 yuan, but the price of domestic products is less than a quarter under the same curative effect, which contributes greatly to reducing the treatment cost of patients. " He believes that guiding more capital into the research of innovative drugs will not only bring considerable commercial returns, but also improve the overall health level of the people.
This belief gave birth to the logic of PCG's investment in medical and health fields, putting "people" in the first place, that is, realizing the import substitution of some innovative drugs and medical devices related to the use of drugs by ordinary people and reducing costs.
Yingke 1 100 million yuan led the investment in Hanyu Medical, a medical device enterprise. The core product of this company is mitral ValveClamp, which is used for minimally invasive interventional treatment of mitral regurgitation. At present, the only mature minimally invasive treatment instrument for mitral regurgitation in the world is Abbott's MitraClip, which has not yet appeared in China. From July, 2065438 to July, 2008, Hanyu Medical Valve Clip successfully performed the world's first clinical operation of apical mitral valve clipping technique in Shanghai Zhongshan Hospital, and completed the last exploratory clinical trial before the end of the year.
"This product has achieved a major breakthrough in the independent research and development of mitral valve instruments in surgery in China, and it is expected to become the first approved mitral valve interventional therapy instrument in China." Qian Feiming emphasized that "PCG chooses to invest, first of all, the technology is very advanced, and secondly, the price is much cheaper than that of foreign countries."
Seeking the "future"
It took PCG eight years to grow from an investment institution with a private background to a state-owned enterprise, a listed company and a financial institution competing for shares, and to participate in the investment business together with the head asset management institution. At present, PCCW has become a mixed-ownership enterprise with 30% shares held by state-owned capital and financial institutions.
In 20 15, Pacific Century Capital acquired the shares of four listed companies (actual controllers/shareholders): Tiger Medicine, Yongtai Technology, Bairun and Dongfulong. In 20 16, a number of large financial institutions and listed companies became the LP of PCCW, including three medical funds jointly established by Tiger Medicine and * * *. 20 17 Banks such as Shanghai Pudong Development Bank, Jinshui Group and Yinghai Group and large state-owned enterprises strategically invested in PCG Capital. In 20 18, PCG was once again favored by capital, and Qingdao Chengtou Group and Qingdao Global Fortune Center strategically invested in PCG Capital. In the two rounds of capital increase, Tiger Pharmaceutical once again increased its holdings.
It is understood that China Industrial and Commercial Bank, China Power Investment Corporation, Shanghai Pudong Development Bank, Industrial Bank, Ping An Bank, Hangzhou Bank, Gansu Bank, Shanghai Trust and Insurance Company and other financial institutions, as well as a number of local financial control platforms and government platform companies are all LP of PCG Capital.
Qian Ceng mentioned to the investment community that PCG has no fund raising department, but only a fund management center, which is responsible for fund raising and fund establishment. Undoubtedly, PCG Capital has opened up a wide range of institutional funding sources.
Next, medical health will remain the focus of PCG investment, including fund-raising and investment. "The new fund being raised will not only involve tigers, but also banks, insurance funds and state-owned enterprises. The cumulative scale of 20 19 biomedical funds may be four, and the guaranteed scale may be 500 million. " Money is very determined. "These jobs have been done almost."
In addition, PCG's core strategy in the future is internationalization, guiding more international first-class investors to invest in China's excellent industries, becoming an important force in China's economic development, and actively expanding overseas LP at this stage. "The dollar fund will also be established immediately. Recently, we have a $200 million biomedical fund, which will be raised soon. At present, large overseas institutions LP and Fortune 500 companies are participating in fund subscription. "
The reason why he is so confident, Fei said frankly, "First, good projects have been in our hands in recent years;" Second, from the exit situation, only 20 18 exits IRR to 80%. This result is still very good. "