Puyi Biotechnology Completes Series B Financing

SHANGHAI,June 1,2021 -- Puyi (Shanghai) Biotechnology Co.,Ltd. ("Puyi Biotechnology") recently announced the completion of its Series B financing led by Goldman Sachs Asset Management. The proceeds will be used to further augment R&D and business development.

Puyi Biotechnology is a leading player in the high-value medical device market in China. Specializing in material science and drug delivery technology,the company has built a unique presence in ENT (Ear,Nose,Throat),reproductive health and medical aesthetics. Since its establishment in 2012,Puyi Biotechnology has received investments from reputable local and foreign investors,including Legend Capital and Northern Light Venture Capital.

The first commercial product of Puyi Biotechnology,"Xiangtong® Fully Bioabsorbable Drug-Coated Sinus Implant," was approved in April 2017 by the China Food and Drug Administration (CFDA) as the first and only approved product of its kind in China. The overall prevalence rate of chronic rhinosinusitis (CRS) in the Chinese population is eight percent. Traditional drug treatment cannot effectively cure the disease resulting in high risk of relapse and re-surgery for patients. In recent years,the clinical use of a fully bioabsorbable sinus implant is commonly recommended by clinical guidelines and the consensus of experts for the diagnosis and treatment of chronic sinusitis. The company's technology can effectively address the shortfalls of traditional therapies and substantially improve treatment outcomes for patients.

In the field of gynecology and reproductive health,Puyi Biotechnology's intrauterine system is dedicated to the treatment of intrauterine adhesion – a condition caused by uterus trauma or injury,leading to damage of the endometrium,which is detrimental to women's health and a key cause of infertility. As a globally innovative product,the company's intrauterine system addresses substantial unmet demand in women's reproductive health and brings a new solution for families with fertility desires. At the same time,Puyi Biotechnology's R&D team,with rigorous clinical development standards has developed a portfolio of medical aesthetic products,including pre-filled injections and suspension suture products that open up new treatment options for men and women with higher requirements for quality and safety.

"We are excited to have a global investor like Goldman Sachs lead this round of financing and would like to thank them and the co-investors for their recognition of our company and team," said Mr. Xie Jian,Founder and Chairman of Puyi Biotechnology. "This investment will not only provide us with broader international perspectives,but also enable us to advance the commercialization of our bioabsorbable sinus implant while completing the late stage clinical development of Puyi Biotechnology's products in gynecology,reproductive health and medical aesthetics. We will continue to focus on research related to material science and drug delivery technology while launching innovative products to satisfy unmet clinical needs."

"We are impressed by the Puyi Biotechnology team and their strong bioengineering capability. The company's CRS implant is a first-to-market product targeting patients in China,many of whom experience deteriorating conditions as a result of physiological and environmental factors. In addition,the company has transplanted its core competency to serve the field of gynecology. Puyi Biotechnology's intrauterine implant device is a potential first-in-class product to treat intrauterine adhesion – a leading cause of infertility globally. We are excited by the prospects of the company's product portfolio in raising the standard of care and look forward to helping Puyi grow its ecosystem," said Kevin Xu,a Managing Director at Goldman Sachs Asset Management.

Huatai International served as the exclusive financial advisor to the company.

About Puyi Biotechnology

Puyi (Shanghai) Biotechnology Co.,Ltd. was established in October 2012. With its core technology focused on material science and drug delivery,Puyi Biotechnology engages in the R&D and commercialization of innovative,high-value and minimally invasive medical devices across multiple market segments. With its values founded on innovation,evidence based research,teamwork and sharing,Puyi Biotechnology will continue to launch more innovative medical products to meet clinical needs.

About Goldman Sachs

Goldman Sachs is one of the world's leading investors in alternative investments. With over 30 years of experience,we invest in the full spectrum of alternatives,including private equity,growth equity,credit,real estate,infrastructure,ESG,and absolute-return strategies. Our clients access these solutions through our direct proprietary strategies,customized strategic partnerships,and open-architecture programs. Our alternative investment teams represent over 1,000 professionals,across 31 offices around the world. We leverage the depth and breadth of global relationships across Goldman Sachs to identify investment opportunities,drawing on our firm-wide capital market insights,industry research,and risk management platforms. We extend these capabilities to the world's leading pension plans,sovereign wealth funds,governments,financial institutions,endowments,foundations,family offices and individuals,for which we invest or advise on over $300 billion of alternative investments.

About Huatai International

Huatai International is a wholly-owned offshore subsidiary and business platform of Huatai Securities,and engages in the Categories 1,2,4,6 and 9 regulated activities under the supervision of the Hong Kong Securities and Futures Commission through its holding subsidiary Huatai Financial Holdings (Hong Kong) Limited ("Huatai Financial").