5Y News | MedSci Healthcare Announces Nearly 2 Billion Yuan Series E1 Funding Round
5Y Capital will continue to focus on how technological innovation drives efficiency gains and paradigm shifts in China's healthcare services sector.
On December 21, MedSci Healthcare announced the completion of its nearly RMB 2 billion Series E1 funding round, jointly led by Tencent and Jeneration Capital, with 5Y Capital, Forebright Capital, Wu Capital, and a major insurance private equity fund participating as follow-on investors. Taihe Capital served as the exclusive financial advisor. As a rapidly growing unicorn in the healthcare sector, this round represents the largest single financing in the pharmaceutical and health insurance space this year. Following the completion of this round, the company will further strengthen its closed-loop pharmaceutical and health insurance ecosystem and continue to expand its leading position in the industry.
Xutian Jing, Managing Director at 5Y Capital, said: "Health insurance is fundamentally different from traditional property and life insurance. Its core lies in the integration and management of medical services — essentially, a managed care system. In such a system, the three elements of healthcare, pharmaceuticals, and payment are all indispensable. It's a business model that is extremely difficult to build, but once established, it creates exceptionally high barriers to entry. After years of exploration in the industry, MedSci Healthcare's team has rapidly captured market leadership across multiple business lines. This demonstrates not only strong execution capabilities but also remarkable adaptability and evolution. Meanwhile, these solid existing businesses have laid a strong foundation for the formation of its own health insurance commercial closed loop. I believe this will become one of the most important pieces of infrastructure in China's private healthcare services sector. We are honored to participate in this funding round, and 5Y Capital will continue to focus on opportunities where technological innovation drives efficiency gains and paradigm shifts in China's healthcare services industry."
Founded in 2014, MedSci Healthcare has built China's leading clinical trial management organization and the country's most extensive specialty pharmacy management network, starting from the core needs of patients and physicians. The company has further connected patients, medical institutions, pharmaceutical companies, and insurance payers to create a genuine closed-loop pharmaceutical and health insurance service ecosystem, forming three core business segments and developing a "UnitedHealth" model with Chinese characteristics.
Currently, MedSci has established China's largest oncology clinical site management organization, covering 100% of core physicians and 100% of core hospitals in this field. It maintains close clinical collaborations with hundreds of domestic, innovative, and multinational pharmaceutical companies, making it the leading brand in China's oncology SMO space.
Leveraging the medical network built through its SMO operations, MedSci expanded into DTP specialty pharmacies. Within three years, it has deployed nearly 80 specialty pharmacies nationwide with unified service standards and systems, covering 56 cities across 29 provinces and serving hundreds of thousands of patients. MedSci Pharmacy is positioned around "professionalism" as its core identity. It established an independent medical department to lead professional pharmacy services, created a dedicated patient management service system, and developed industry standards for pharmaceutical care.
Building on its integrated infrastructure network of physicians, medical institutions, and pharmaceutical companies, MedSci further connected commercial insurance payment to establish a multi-tiered medical security network. Currently, MedSci has launched inclusive supplementary medical insurance in multiple locations and introduced a new generation of corporate health benefits solution — MedSci Health Insurance. Through a corporate physician pre-management model, Health Insurance completes the commercial insurance closed loop of claims initiation, service delivery, and reimbursement within MedSci's self-built healthcare system. It is rapidly expanding nationwide, helping enterprises develop more quickly through high-quality, efficient medical services, further advancing toward the corporate vision of "providing trustworthy medical and health protection for strivers and their families."
5Y Capital (formerly Morningside Venture Capital) currently manages approximately $3 billion across USD and RMB dual-currency funds. We believe the world would be a better place if the crazy you that others saw started to be believed.
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