Hangzhou Andao Pharmaceutical Co., Ltd. (“Andao Pharma”) recently announced the successful closing of its Series C financing round, raising more than RMB 400 million. The round was led by Grand Industry Capital (with Huadong Medicine as a major limited partner), Taiping Healthcare Fund, C&D Emerging Investment, Hangzhou Taikun Investment, Zhejiang Provincial “4+1” Biopharmaceutical and High-End Medical Device Industry Fund, Guangzhou Investment Holdings, Guangzhou Development District Investment Group and Kejin Holdings, alongside Hangzhou Talent Fund. Existing investors including Gaorong Capital, Yifeng Capital and Northern Light Venture Capital participated in the follow-on investment.
Founded in 2014 and located in Linping Economic & Technological Development Zone, Hangzhou, Andao Pharma is an innovative biotech company dedicated to discovering and developing new medicines for kidney diseases, pan-anemia disorders and cancers. Its lead asset AND017 is an orally administered small-molecule candidate independently developed for the treatment of anemia associated with chronic kidney disease (CKD). The mechanism of action underpinning AND017 was recognized by the 2019 Nobel Prize in Physiology or Medicine. AND017 completed two multi-center Phase II clinical trials in China and the United States in 2024, and has now initiated patient enrollment for pivotal Phase III clinical trials. Meanwhile, multiple Phase II trials of AND017 targeting rare diseases including sickle cell disease (SCD) and myelodysplastic syndromes (MDS) are underway. As an oral once-weekly small-molecule therapy, AND017, upon commercialization, is expected to deliver distinct advantages in treatment adherence and safety compared with alternative therapies, with the potential to become a blockbuster drug covering multiple indications across the pan-anemia spectrum.
AND019, another novel drug in Andao Pharma’s pipeline, is a third-generation selective estrogen receptor degrader (SERD) featuring a novel chemical scaffold. Leveraging the protein degradation mechanism, AND019 specifically degrades estrogen receptors and blocks ER signaling pathways, thereby inhibiting the proliferation of breast cancer cells. Being developed as a foundational hormonal therapy for breast cancer, AND019 is currently undergoing parallel Phase I clinical trials in China and the United States.
Andao Pharma’s pipeline further comprises multiple preclinical small-molecule candidates and ADC programs.
Proceeds from this financing will be primarily used to accelerate global clinical development of AND017 and AND019, as well as IND-enabling studies for the Company’s other small-molecule and ADC assets.
Previously, Andao Pharma secured a USD 35 million Series A financing led by Decheng Capital in 2019, followed by a USD 50 million Series B round in 2021 co-led by Northern Light Venture Capital and Gaorong Capital, with participation from Yifeng Capital, Decheng Capital and Ancheng Capital.
The completion of the Series C financing underscores capital market recognition of Andao’s core R&D capabilities and confidence in the broad commercial prospects of its pipeline candidates.
Dr. Liu Dong, Founder, Chairman and CEO of Andao Pharma, commented:
“We sincerely appreciate the trust and support from our new and existing investors. After a decade of persistent efforts, the Company has entered a phase of rapid growth. This year, AND017, one of our core pipeline assets, successfully kicked off patient enrollment for pivotal Phase III trials and multiple Phase II studies. Securing investment from numerous renowned institutions is a testament to our team’s hard work guided by our mission: Cherish humanity, respect science, and benefit patients. Taking this financing as a new starting point, Andao will fully commit to expediting the R&D of our investigational medicines. We aim to live up to investors’ confidence, build a respected innovative drug enterprise, and strive to deliver novel therapies with genuine clinical value to patients worldwide at an early date.”
Grand Industry Capital (with Huadong Medicine as a major limited partner) stated:
“For over a decade, Hangzhou Andao Pharma has focused on innovative drug development, with multiple pipeline candidates advancing to pivotal clinical stages. Our investment in Andao aligns with Huadong Medicine’s strategic layout in nephrology and generates synergies with Huadong’s existing product portfolio. As a corporate venture capital industrial fund, we stand ready to support the sustainable and sound growth of the enterprise, advance new drugs to market, and provide patients with more high-quality clinical treatment options.”
Taiping Healthcare Fund remarked:
“Taiping Healthcare Fund consistently follows the core requirements of leveraging science and technology finance to serve the real economy, as outlined in the national financial strategy, and aligns with the policy priorities of supporting innovative pharmaceuticals and medical devices during the 15th Five-Year Plan period. We continuously track cutting-edge biotechnologies and therapies, particularly differentiated solutions for chronic diseases. Boasting distinctive advantages in pan-anemia treatment, especially renal anemia, AND017 has steadily progressed through global clinical trials. We expect Andao to accelerate clinical translation and commercialization post-financing, bringing innovative therapeutic alternatives to patients globally in pan-anemia and oncology areas, facilitating high-level self-reliance in science and technology and empowering the advancement of Healthy China Initiative.”
C&D Emerging Investment commented:
“There exists substantial unmet medical need worldwide for nephropathy and oncology treatments. The Andao team demonstrates solid scientific expertise and efficient execution. Anemia represents a well-defined clinical pain point, and AND017’s novel mechanism is poised to break the limitations of current therapies. We are delighted to partner with Andao and look forward to seeing its medicines reach the market to benefit patients.”
Guangzhou Investment Holdings said:
“We highly recognize Andao Pharma’s founding team and pipeline. AND017 has entered Phase III development with clinical data indicating best-in-class potential, while AND019 boasts enormous market potential and is expected to become the Company’s second major growth driver. We anticipate that under the leadership of Dr. Liu Dong and the dedicated team, Andao will accelerate product launch and advance more promising pipeline programs.”
Mr. Jin Yufeng, Chairman of Heda Fund and Appointed Representative of Zhejiang Provincial “4+1” Biopharmaceutical and High-End Medical Device Industry Fund, noted:
“Andao Pharma is an outstanding biotech enterprise based in Hangzhou. Guided by Dr. Liu over the past decade, the Company has achieved remarkable R&D milestones and delivered encouraging clinical results. We are thrilled to partner with such a high-quality firm and hold full confidence in Andao’s future development. This investment marks a key strategic layout by Heda Fund in therapies for chronic kidney disease-related anemia. It will help improve the industrial ecosystem of Qiantang China Medicine Port and contribute to the biopharmaceutical industry of Zhejiang Province and China at large.”
Mr. Zhang Yan, Chairman of Kejin Holdings, stated:
“Against the backdrop of an aging population, Kejin Holdings actively seeks innovative investigational drugs featuring superior patient adherence and greater clinical value for chronic disease management. In chronic kidney disease, AND017 developed by Andao Pharma shows outstanding potential. The candidate enables once-weekly administration for renal anemia treatment with improved metabolic safety, easing patients’ treatment burden. Built on the Nobel Prize-winning oxygen metabolism pathway, AND017 is being explored for broader indications across anemia disorders to build a pan-anemia therapeutic portfolio. Through industrial financial investment, we can coordinate with our other invested drug programs to develop combinatorial therapies targeting specific diseases, delivering comprehensive treatment outcomes and continuously supporting innovation within China’s clinical pharmaceutical ecosystem.”
Hangzhou Talent Fund commented:
“As patient capital focused on supporting talent-driven innovation and entrepreneurship in Hangzhou, we prioritize innovative enterprises equipped with top-tier talent teams, core technological strengths and significant clinical value. For more than ten years, Andao Pharma has devoted itself to developing new medicines for kidney diseases and cancers. Its lead program AND017 has advanced into pivotal Phase III trials, while AND019 carries out synchronized clinical studies in China and the US. The tangible R&D progress embodies the corporate tenet: Cherish humanity, respect science, and benefit patients. This investment recognizes Andao’s dual core competitiveness built on talent and technology, and reflects our confidence in Hangzhou’s biotech talent ecosystem and innovation vitality. We expect Andao to seize opportunities brought by this financing, leverage its core talent strengths to accelerate the research and transformation of pioneering new drugs, and deliver breakthrough clinical benefits to patients. We will continue to connect talent resources to support the Company in pursuing higher-quality development.”
