Huadong Medicine launches $2bn pharmaceutical fund, gains FDA nod for cancer drug trial

Huadong Medicine announced the establishment of the Hangzhou Fuguang Hongze Equity Investment Partnership (Limited Partnership), a specialized pharmaceutical industry investment fund with a total committed capital of RMB 2 billion. Huadong Medicine is a limited partner, contributing RMB 980 million (49%). As of the announcement date, the fund has completed industrial and association registration, with initial capital of RMB 1,000 million raised. This fund aims to enhance the company's core competitiveness by investing in innovative medicine, medical aesthetics, and other health-related fields.

In a separate development, Huadong Medicine's wholly-owned subsidiary received approval from the US FDA to initiate a phase I clinical trial for its novel drug, HDM2017. This antibody-drug conjugate (ADC) targets advanced malignant solid tumors and represents a significant step in the company's oncology treatment pipeline. HDM2017 is also undergoing clinical trial application review by China's NMPA.

The company states that the fund will improve the efficiency of idle capital utilization and generate investment returns, aligning with its strategic development. While the HDM2017 approval enhances Huadong Medicine's core competitiveness in oncology, it will not significantly impact recent performance, and drug development involves substantial risks.