Capital injection: China backs AI drug makers in self-reliance drive

Hangzhou-based METiS TechBio, founded in 2020, raised 400 million yuan (US$57.9 million) in series D financing in August last year, led by the Beijing Medical and Health Industry Investment Fund and the Daxing Industrial Investment Fund – both government-linked vehicles – according to the company’s website.

Using a proprietary AI platform focused on optimising drug delivery, the company has developed MTS-004, an oral treatment for neurological disorders that has completed Phase III trials, making it China’s first AI-designed drug candidate to reach that stage.

The company plans to seek regulatory approval in China this year.

In earlier funding rounds totalling about US$150 million in 2022, METiS attracted a broad mix of domestic investors, including state-linked insurers PICC Capital and China Life Private Equity, as well as venture firm HongShan, formerly known as Sequoia China before splitting from its US parent in 2023.

METiS is also considering a Hong Kong initial public offering that could raise about US$200 million, according to a Bloomberg report published last May.