Recently, Tengchuang Biomedical Technology, a pet innovative drug company, has completed an angel round financing of tens of millions of RMB, exclusively invested by Jinding Capital. This round of financing is mainly used for product development, team expansion and market expansion.
Founded in 2022, Tengchuang is an animal healthcare pharmaceutical company dedicated to improving animal healthcare. Based on its R&D experience and technology in human medicine, Tengchuang develops pet innovative medicines, high-end complex formulations, and innovative diagnostic reagents by international standards. At present, Tengchuang focuses on filling the gaps in the domestic market with innovative pet medicines.
With the continuous development of pet economy, pet family status and pet habits gradually change, the demand for pet drugs significantly increased, especially in recent years, the aging of pets has greatly stimulated the demand for pet drugs, 2022, the global leading animal protection Shuo Teng companion animal-related business has more than 5 billion U.S. dollars in revenue.
In the context of the demand explosion, the pet medicine supply problem has become a key constraint to the development of the industry, to solve the supply problem has become the road to the development of the industry, in general, there are three major development logic:
(1) upgrade alternative: the current industry supply mainly from the economic class of animal drugs, economic class of animal drugs are mainly applied to pigs, cows, sheep, horses and other large animals or chickens, ducks, geese and other poultry animals, due to the drug research and development links of the target animals are different, such drugs efficacy and safety in cats and dogs and other pets are insufficient. In addition, there are fewer varieties of such drugs, and the Ministry of Agriculture (now the Ministry of Agriculture and Rural Affairs) 2512 in 2017 provided only 183 types of available pet medicines, making it difficult to cope with the complex and changing types of diseases. In recent years, more and more specialized drugs for pet diseases have come to the market, forming an obvious upgraded substitution for the original drugs.
(2) Compliance substitution: At present, there is still a large part of the pet medical market belongs to the human medicine, human medicine has good product quality, rich product categories and affordable price, in the pet drug market occupies a fairly important position. However, human drugs for veterinary use in compliance with the huge legal risks, in recent years, the regulatory bodies in many places began to focus on such illegal behavior, regulatory efforts, strong penalties, to a large extent, the impact of human drugs for veterinary use of the chaos, but also to further increase the market demand for compliant and effective drugs.
(3) Gaps to fill: there is a huge gap in the market for pet drugs, for example, for the pet aging problem, due to the economic class of animals to the right age will be slaughtered, there is no systematic aging, so the pet health care system is very scarce pet aging drugs. In addition, with the gradual improvement of the status of the pet family, the hospital diagnosis and treatment level is rising, a variety of diseases have a better diagnosis, the market gap is further open.
The pet drug industry has both drug industry attributes and consumer product industry attributes, with high barriers, especially for innovative drug companies, there are generally four major difficulties: product selection, API and formulation R&D, review and certification, and marketing. In the product selection process, it is necessary to take into account market demand, R&D difficulty, promotion difficulty and other dimensions. From the demand point of view, due to the long cycle of pet drug R & D and certification, the current market demand and the market demand 5 years later are often different, requiring the entrepreneurial team to have a high level of knowledge of the pet drug industry. Pet drug R & D is limited by the current imperfect pet drug industry, the industry is very lack of relevant drug R & D personnel. In the review and certification process, there is a review of the difficulty, long reporting time cycle and other issues. In the market sales link is facing the hospital side of the pattern of fragmentation, the doctor’s level of uneven and other issues. Overall, the pet drug industry naturally has high industry barriers, and companies that can simultaneously cope with a number of challenges are very rare.
The high barriers of the industry form a high challenge to the startup team, requiring the team to have a strong comprehensive ability. Tengchuang has a very professional background in the development of human medicines, as well as a deeper knowledge and understanding of the pet medicine industry. For example, Tengchuang has determined the idea of selecting products based on consumer demand from the very beginning of the venture, instead of selecting products based on the extension of existing technologies, and is committed to researching and developing products with high immediate needs and strong pain points in the market. In order to reduce the risk of R&D, Tengchuang selects mature targets that have already been validated in the field of human drugs, and conducts R&D based on human drug R&D experience and management system. In addition, Tengtronics has rich experience in review and approval, and marketing and sales.
Talking about this round of financing, Tengchuang’s founder, Zijian Cao, said, “As a R&D company focusing on innovative pet medical products, our products include patented compounds, 505b2 formulations specifically for pets, and new pet diagnostic reagents, which can effectively fill in the gaps of domestic and international pet medical care. As a specialized capital deeply engaged in the pet industry, GDT not only focuses on the pet medical industry, but also has a large number of layouts in the entire pet industry. In this cooperation, GDT not only provides financial assistance, but also offers professional advice on enterprise development with its many years of experience in the pet industry, and provides effective support for the future development of the enterprise with its high-quality industrial resources. The cooperation between the two companies is committed to building an international company targeting the global market.