Chinese respiratory drugmaker CF PharmTech Inc. raised $90 million in a financing round, showing investors’ confidence in the country’s potential to develop drugs it now imports.

CF PharmTech said Thursday it completed a Series E investment led by New Alliance Capital, which will obtain a seat on the drugmaker’s board.

Foreign-developed inhaled respiratory drugs have long been dominant in China’s market. Now that some domestic drug companies are trying to break in, those with strong research and development capability might be well positioned in the market with a cost advantage, New Alliance Capital Executive Director Cai Lei told Caixin.

Founded in 2007, CF PharmTech said it has a growing pipeline of more than 20 inhalation products targeting China and global markets.

China had a 17 billion yuan ($2.44 billion) market for asthma and chronic obstructive pulmonary disease drugs in 2018, with annual growth of 14%, according to a report by Ping An Securities. Foreign-made drugs accounted for 78%, the report found.

Respiratory treatments and inhaled medications, in particular, are promising because of the high technological barriers to entry and immense potential for growth, New Alliance’s Cai said.

Contact reporter Denise Jia (huijuanjia@caixin.com)