Chinese drug maker to invest $40M in Proteus Digital Health

Proteus Digital Health

Harbin, China-based Gloria Pharmaceuticals plans to contribute $40 million to Proteus Digital Health‘s Series H round of funding. The firm’s Hong Kong-based subsidiary Gloria offered to buy $25 million in preferred Proteus stock and will invest another $15 million through the leading investor, Shanghai Sailing Boda Equity Investment Fund Partnership. Proteus plans to issue 7 million shares in its next round of financing, estimated at $110 million.

“We are optimistic in the prospect of its product. Currently, there is not much about digital (medicine) in China and it would be great if we can bring in the most innovative medical technology,” Liu Yueyin, spokeswoman of Gloria Pharmaceutical, told Medical Device Daily.

Beyond investing, Gloria will also get an 18-month period of exclusive negotiation with Proteus, to establish a joint venture company in China.

Last September, the FDA accepted the first application for a digital medication, Abilify, a “sensor contained tablet” device used to treat depression and schizophrenia. This hi-tech drug enables doctors to monitor the process of a patient taking the pill along with reaction to it through an external signal receiver.

Gloria on its end is looking at investment in Proteus as part of its strategy to focus on chronic diseases such as hypertension, diabetes, and mental illness.

“The deal will help the company continue to research and develop promising medical health technologies in chronic diseases area to optimize industrial structure layout, and boost the company’s capacity in chronic disease treatment,” noted Gloria in a company statement.

Established in 2000, the Chinese health care company sells injectable drugs such as antibiotics, medical nutrition, and orthopedics, rheumatology, oncology, gastroenterology, cardiovascular medicines.