Kactus Biosystems Files IPO Prospectus Highlighting Strategic Position in High-Difficulty Recombinant Proteins and CGT Enzymes

Recently, Suzhou Gravel Biotechnology Co., Ltd. and Kactus Biosystems (Shanghai) Co., Ltd. have reached a strategic cooperation in the development and industrialization of gene-edited TIL pipelines using recombinant proteins and GMP-grade tool enzymes. The cooperation includes product development and commercialization, registration submissions, marketing, and other aspects. By leveraging each other's strengths in R&D and technology through deep collaboration and resource integration, the two parties aim to provide highly competitive CGT solutions to the market.

Since completing nearly 200 million yuan in B-round financing in October last year, Kactus Biosystems (Shanghai) Co., Ltd. has successively reached strategic cooperation agreements with Liwen Research Institute and 360 Billion Cloud, with each piece of news drawing significant market attention. Due to itsIn just four years, it raised 400 million yuan, demonstrating the market's favor and leading to this level of popularity.。

Kactus Biosystems (Shanghai) Co., Ltd. was founded in 2018, focusing on the upstream key protease raw material field, driven by independent innovation. Relying on its unique protein research and development platform SAMS, it entered the antibody drug market from the challenging transmembrane protein field. It then extended to the gene therapy field, being the first company in China to provide GMP-grade Cas9 enzyme that meets clinical needs for gene editing, offering GMP-grade全能核酸酶for the AAV and vaccine industries, cytokines for cell therapy, and raw material enzymes for mRNA vaccine production. Among these, Cas9 enzyme, 全能核酸酶, BsaI, and T7 RNA Polymerase have all completed DMF registration. Its 5,000-square-meter R&D and production center in Pujiang Town, Shanghai, along with a technical team of nearly 250 people, has established a GMP-grade protease industrialization base of over 10,000 square meters in the Lingang New Area of Shanghai.

These are derived from the scarcity of its technology and the sufficient trust of the capital market, which mutually reinforce each other, supporting Kactus Biosystems in moving towards a broad development space.

Wang Gang, the founder and CEO of Kactus Biosystems (Shanghai) Co., Ltd., once frankly admitted that obtaining the participation and recognition of well-known funds during this industry downturn adjustment period indicates thatDifferentiated Competition，SolveUpstream Industry of BiologicsUnmet NeedsThe approach has been recognized.

Attracted capital at its inception, and by 2022, within four years, it first received tens of millions in Pre-A round funding from Dehui Capital in 2019. In October 2020, it secured 40 million yuan in A round funding; in August 2021, over 100 million yuan in A+ round funding; in February 2022, a strategic round; and in October 2022, 200 million yuan in B round funding. The financing achievement of 400 million yuan in four years was particularly prominent during the capital winter period. The investors included not only comprehensive investment institutions such as SDIC Venture Capital, Dehui Capital, Lianxin Capital, Lingang Blue Bay Capital, and Guofang Capital, but also vertical pharmaceutical investment firms like Sherpa Healthcare Partners, BioVeda Capital, and TF Capital. Additionally, innovative drug companies such as Biocytogen, Abogen Biosciences, and a renowned international life sciences industrial group also participated.

For the capital market, making money is its simplest response.. In the midst of a harsh winter, making an investment move is clearly due to its greater certainty, hence the need to dissect Kactus Biosystems (Shanghai) Co., Ltd.The scarcity and differentiation of potential logic and technical products。

Compared with the mature targets of PD-1 and BCMA, Claudin18.2, developed by Kactus Biosystems (Shanghai) Co., Ltd., is a four-transmembrane protein.The R&D difficulty is high, and almost no company has succeeded, but Kactus Biosystems did., Kactus Biosystems is considered the only company globally that can provide full-length, high-activity Claudin 18.2 protein. The emergence of the Claudin 18.2 recombinant protein has lowered the threshold for drug development, making the research and development of Claudin 18.2 antibody drugs easier. Amidst the market's enthusiastic reception, Kactus has subsequently developed a series of reagent products including Claudin6, CD3 heterodimer, Klotho, DLL3, MHC Complex, CCR8, GPRC5D, and VLP CD24, building a product matrix that has established Kactus as a well-known protein brand.

This kind of scarcity obtained through high-difficulty exchange represents a certain level of certainty, which sufficiently explains the reason for capital's pursuit.

The CRISPR/Cas9 system technology is hailed as the third major breakthrough in the field of gene editing. With the development of human gene editing technology, there is hope for the treatment of cardiovascular diseases, viral infectious diseases, tumors, and other conditions. Among these, gene and cell therapy (CGT) has emerged as a new approach, with multiple manufacturers in China entering the field to research and overcome challenges.

Kactus BiosystemsFrom the successful experience of Claudin18.2, with the help of GMP-level production conditions, re-enter the field of gene editing enzymes.. Using thalassemia drugs as a breakthrough, the first version of the Cas9 protein was completed. After repeated iterations, its activity and stability reached internationally advanced standards, successfully resolving the concerns of gene editing companies in China. It is important to note that during the same period, imported enzymes cost over 50,000 yuan per milligram. If mass production were required, there would also be the risk of uncontrollable overseas transportation cycles. This move effectively broke the monopoly of foreign brands, which is of great significance.

This time, the sharp change in the Cas9 protein,Customers' immense demand has been thoroughly stimulated., With the first successful case, many CGT pharmaceutical companies began to approach Kactus Biosystems, prompting Kactus to build a production workshop. This led to the establishment of the large-scale GMP-grade protease industrialization base in Lingang New Area, Shanghai, as mentioned at the beginning of the article. The Cas9 protein has completed the US FDA DMF filing.

Moreover, with the successive successes of Claudin18.2 and Cas9, abundant technical experience has been accumulated, fostering an unstoppable momentum for breakthroughs. In 2020, the mRNA enzyme for the COVID-19 mRNA vaccine was quickly conquered with the help of the protein development platform SAMS. The continuously enriched product types each bring growth points to the company.Kactus Biosystems Achieves a Good Start, which means half of the success, has established a position in the upstream key protein field.FocusA role in producing mining tools.

Not only that, but to align with business operations and future company development, Kactus Biosystems (Shanghai) Co., Ltd. relocated from Zhangjiang High-Tech Park to the Pujiang Town R&D and production hub, subsequently expanding its workforce by 250 employees. Being closer to customer needs allows for greater efficiency and speed. Having undergone the dual challenges of the Shanghai pandemic and industry adjustments, Kactus Biosystems is poised to shine post-epidemic with its rare technical expertise and products.

From the internal technology and development logic of an industry, we can often predict the trend of capital inflow; at the same time, when we lack a clear understanding of an industry, looking at the technological product strength through capital intensity can also provide some insights.

As a leading brand in China for recombinant proteins and CGT enzymes, Kactus Biosystems' current achievements lie in its accurate positioning—taking on challenging tasks and focusing on producing high-quality crystallization. Success will follow from these efforts. Start-up companies must avoid homogeneous products and instead focus on unique, undiscovered directions. By doing the right thing and committing fully to the chosen path with unwavering dedication, breakthroughs can be achieved. This, in turn, will naturally attract downstream demand and capital, fostering collective growth.

Highly challenging recombinant proteins and CGT enzymes that align with current trends serve as strong evidence of this. For Kactus Biosystems, a new phase is on the horizon. The author hopes that the company will stay true to its original mission, continue to develop protein products urgently needed downstream, and break through more monopolies on upstream raw materials. This is the fundamental path for Kactus Biosystems' growth.

References:

1. Kactus Biosystems Completes Series B Financing, Strengthening Its Core Competitiveness in the Field of Critical Protease Raw Materials for Biologics, Arterial Network, 2023

2. Kactus Biosystems Raises Nearly 200 Million Yuan in Series B Round, Strengthening Core Competitiveness in Key Protease Raw Materials for Biologics, Shengchi Capital, 2023

3.4 Years, Nearly 400 Million Yuan in Financing! Why Can This Startup Team Take Off Amidst the "Pharmaceutical Winter"?, Zhangtong News, 2022

4. Kactus Biosystems Information, Official Website