"Nuoxin Chuanglian" Raises $15 Million in Funding | FreeS Fund Deal News

" Investor Perspective

Lei Wang, Director, FreeS Fund

Email: lei@freesvc.com

Since its founding, FreeS Fund has consistently paid close attention to data and solutions projects in healthcare and pharmaceuticals. In the highly active clinical data space, precision medicine and digital marketing are also key areas of our investment focus.

Looking at Europe and the US, driven by tightening regulation and demands for ROI, companies there began breaking away from traditional innovative drug marketing strategies and tactics several years ago, gradually introducing and deploying MCM (multi-channel marketing) at scale. Clearly, data — and the behavioral analytics and intelligent predictions that depend on it — lie at the core of MCM marketing.

NuoXin ChuangLian identified this market trend at a very early stage. The founder's understanding of the industry, capability in data platform construction, and ability to build application solutions for pharmaceutical companies are all second to none. I believe that with pharmaceutical companies and capital as partners, NuoXin will accelerate the industry's march toward more efficient, precise, and intelligent pharmaceutical marketing.

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[Exclusive] NuoXin ChuangLian Raises $15 Million to Develop AI Technology and Digital Marketing Solutions

Source: VB Data (动脉网)

Author: Yanli Jiao

In October 2019, NuoXin ChuangLian, an AI-powered life sciences marketing solutions company, announced the completion of a $15 million new funding round, co-led by Volcanic Stone Capital and CCV. Following this round, NuoXin ChuangLian will continue investing in AI technology and product R&D, expanding its service value, enriching application scenarios, and upgrading and broadening its partnerships with doctors, patients, and pharmaceutical companies. NuoXin ChuangLian previously received angel investment from FreeS Fund in 2016.

As the previous generation's leader in life sciences marketing, US healthcare CRM provider Veeva grew into a company with a market cap exceeding $20 billion by effectively solving sales rep management and productivity challenges, while also seizing the opportunity of the shift from traditional architecture to cloud-based systems.

Between the two directions of "opening sources" and "throttling expenses," Veeva achieved cost reduction through optimizing cost structure and improving efficiency — the "throttling expenses" approach. But as market competition intensifies, the need to boost revenue grows increasingly urgent.

Based on this demand, next-generation high-tech marketing products will certainly evolve in two directions: first, multi-scenario information flow matching based on the integration of complete data circulation and artificial intelligence, such as Salesforce's Einstein AI platform; second, the need to serve and connect more marketing links, not just sales representatives.

Looking at China's healthcare market, with the implementation of policies such as tiered diagnosis and treatment, consistency evaluation, centralized volume-based procurement (4+7), the NMPA (formerly CFDA) accelerating new drug approval timelines, and DRG/DIP payment reform, product life cycles have shortened, profit margins have dropped sharply, and industry competition has intensified. Traditional offline pharmaceutical sales representatives face mass layoffs. Both upstream and downstream in the industry chain urgently need to transform toward compliant, efficient, and precise marketing methods that can deliver genuine, measurable results.

NuoXin's marketing product and service system applies advanced technologies and algorithms including NLP, big data analytics, and convolutional neural networks to integrate regional healthcare data, forming a physician-centered medical data knowledge graph that radiates outward to drugs, diagnosis and treatment, materials, and surgery — helping healthcare companies achieve more efficient coverage, enabling more efficient transmission of professional information between new drugs and key physicians, and helping grassroots doctors more efficiently access the same professional knowledge as leading specialists. Through advanced technologies like knowledge graphs, it more efficiently solves information asymmetry problems.

In the past, developing a drug strategy required three months of offline research and consulting; now, based on NuoXin's data and technology, it can be completed in one week. While traditional professional pharmaceutical representatives could cover at most 70 doctors per month, using NuoXin's intelligent marketing product system, professional pharmaceutical representatives can conduct professional knowledge transfer with over 1,000 doctors per month, greatly improving efficiency for clients.

In 2019, NuoXin achieved efficient nationwide coverage for over 60 drug varieties, becoming the AI marketing solutions company with the most pharmaceutical clients and the highest physician coverage. Based on NuoXin's proprietary ONE DATA system, data middle platform, and complex business scenario algorithms, it has built high-tech products serving different marketing functions including market, sales, medical affairs, and commercial operations.

Its rich product layout and accurate trend forecasting have also been well reflected in business results. NuoXin currently helps 20 leading pharmaceutical companies more effectively connect with 45,000 doctors nationwide, serving a drug market size of RMB 600 million. It has been widely praised among served clients, achieving a 100% renewal rate in 2019, 250% upsell rate per drug, and 500% annual growth in core business.

Ruan Wei, founder and CEO of NuoXin ChuangLian, stated that since its founding, NuoXin has been driven by the dual engines of "data + technology," committed to reshaping the pharmaceutical chain through advanced technology and products, helping companies generate revenue, helping doctors improve treatment levels, and helping patients live happier lives — truly achieving technology that serves business and creates value for society.