DTx Company 'Hi' Raises 7.5 Billion KRW in Series B Funding

Participation of Dongwha Pharm in SI... Expecting Synergy in CNS Disorders

HAII CI (Photo by HAII)

[Asia Economy Reporter Chunhee Lee] Digital therapeutics (DTx) company HAII announced on the 23rd that it has completed a Series B investment round worth 7.5 billion KRW.

This investment round comes two years after the Series A funding in October 2020. With this, HAII's total accumulated investment amount has reached 11.5 billion KRW.

HAII, a DTx company, is developing digital theranostics that combine diagnosis and treatment. Its main product, the generalized anxiety disorder DTx Anzeilax, is currently undergoing clinical trials after receiving approval for confirmatory clinical trials from the Ministry of Food and Drug Safety. In addition, HAII is developing the diagnostic application ‘Maeum Geomjin’ (Mind Check) for Anzeilax, 'Alzguard' for dementia diagnosis and treatment, and 'Forme' for children with attention deficit hyperactivity disorder (ADHD).

HAII began its Series B funding in January with the goal of raising funds for domestic clinical trials and global expansion, as well as attracting strategic investors (SIs) to build sales and distribution networks after obtaining DTx regulatory approval. This round included existing investors KB Securities, KB Investment, and Capstone Partners, along with new investors CJ Investment and Jin & Partners.

As a strategic investor, Dongwha Pharmaceutical joined to pursue various collaborations and synergies with HAII. Through this, Dongwha Pharmaceutical secured the right of first negotiation for domestic sales rights of HAII’s DTx products, including Anzeilax. They also plan to discuss joint planning and development of new DTx products and overseas joint expansion. A representative from Dongwha Pharmaceutical stated, "DTx is expected to greatly help central nervous system (CNS) diseases that are difficult to treat with medication alone," adding, "We look forward to the development and commercialization of leading CNS disease DTx through this strategic investment."

Oh Young-joo, team leader at KB Securities who led this Series B investment, explained, “When this investment began, the domestic and international economies were entering a downturn phase, causing all investors to be restrictive or apply very strict criteria for new investments. Despite the difficult investment environment, HAII successfully completed the investment, gaining recognition for its competitiveness and growth potential both domestically and internationally.”

Kim Jin-woo, CEO of HAII, said, “This investment signifies that many investors agree with the potential of digital theranostics that HAII pursues and its direction for global expansion,” adding, “In particular, the investment from the leading pharmaceutical company Dongwha Pharmaceutical will accelerate HAII’s growth.”