GenoBasket Completes Strategic Merger with WuJiaHe Gene and Secures Pre-B Financing to Advance Commercial Manufacturing and Clinical Trials of Novel Gene Therapies

Recently, Genecradle (referred to as "Genecradle" or "the Company"), a gene therapy new drug research and development company, completed a strategic reorganization and merger with Beijing Wujiahui Gene Technology Co., Ltd. ("Wujiahui Gene"), a gene therapy product manufacturing enterprise, and secured nearly 100 million yuan in Pre-B funding to enhance AAV production scale and commercialization capabilities, supporting the registration and market launch of Genecradle's new drug products. This round of financing was led by Qiandao Fund, with continued support from existing shareholder Oriental Fortune.

Beijing Genecradle Therapeutics Co., Ltd. is a national high-tech enterprise that focuses on the development of gene therapy drugs mediated by AAV vector delivery technology. With the mission of advancing China's rare disease gene drugs from the laboratory to clinical and market applications, the company aims to benefit patients and their families. The company specializes in the development of gene therapy drugs for hereditary neuromuscular diseases, inherited metabolic disorders, lysosomal diseases, and ophthalmic diseases. By promoting the research, development, and clinical application of rare disease gene drugs, it seeks to deepen the understanding of life and health, transitioning gene therapy technologies and products from rare diseases to the treatment and rehabilitation of chronic and other major diseases.

The company’s quality policy is "Driven by demand, bold in innovation, focused on design, strict in verification, precise in manufacturing, and beneficial to patients." It has developed multiple clinical-stage pipelines with independent intellectual property rights both domestically and internationally, including gene therapy drugs for indications such as Spinal Muscular Atrophy (SMA), Pompe disease, and Hypertriglyceridemia with Acute Pancreatitis. Clinical trials are being conducted at several clinical research centers, including the Seventh Medical Center of the Chinese People's Liberation Army General Hospital, Peking Union Medical College Hospital, Beijing Hospital of the First Affiliated Hospital of Peking University, the First Medical Center of the Chinese People's Liberation Army General Hospital, and Beijing Tiantan Hospital affiliated with Capital Medical University. The figure below lists six implied clinical trial authorizations obtained by the company.

In addition to the aforementioned clinical-stage new drug projects, the company's strategic transition to chronic and degenerative diseases has completed its initial R&D layout. It continues to make efforts in the upgrading iteration of next-generation gene therapy products and pharmaceutical technology research. After completing the strategic merger with Five Plus He Gene, the company has become a gene therapy new drug enterprise with integrated R&D, clinical, and production capabilities. It will further focus on the innovative R&D and manufacturing of China-produced gene therapy drugs, addressing clinical needs and improving the lives and futures of patients in China.

The production headquarters of Beijing Wujiahé Gene Technology Co., Ltd. is located in the Biomedical Base of Daxing District, Beijing. As a CDMO platform enterprise with large-scale viral vector production services as its core business, the company is committed to providing customers with viral vector products that comply with GMP standards. The company continuously improves product processes and raises the quality standards for the production of gene therapy drugs, adhering to the philosophy of "making good medicines and affordable gene therapies for the Chinese people." In early 2023, after Wujiahé Gene completed its reorganization and merger with Genecradle, it became the gene drug production center of Beijing Genecradle Therapeutics Co., Ltd., with its original CDMO business being taken over and carried out by its subsidiary, Beijing Jingpudi Gene Technology Co., Ltd.

QianDao FundSenior Investment Director Mr. Jiang Yu stated: The field of cell and gene therapy is developing rapidly and will be a future focal point of international technological competition. AAV gene therapy is in a high-growth phase in China, with significant unmet clinical needs. Genecradle, founded by Dr. Wu Xiaobing and Dr. Dong Xiaoyan, who have over two decades of experience in viral vector and gene therapy research, demonstrates a deep understanding of the industry. Their core technology is independently developed and controllable. The company has a rich pipeline of products with differentiated competitive advantages and is currently the enterprise with the highest number of AAV gene therapy products approved for clinical trials in China. We are very optimistic about the development prospects of Genecradle, and we believe it will seize industry opportunities and continue to lead.

Qian Dao Group, founded in 2011, adheres to the concept of "technology empowering finance, financial services for industry, and industry serving the country," deeply participating in China's economic development and industrial upgrading. It aims to become a comprehensive holding group that leads innovation through technology and serves the real economy. The group includes several member enterprises such as Qian Dao Investment Fund Management Co., Ltd., which focuses on pharmaceuticals, medical technology, advanced manufacturing, and new energy, and China Xinxing Asset Management Co., Ltd., a subsidiary of a mixed-ownership reform central enterprise. These enterprises specialize in various asset management and investment businesses, including equity investment, industrial investment, and special opportunity investment.

Oriental FortuneMr. Wang Peijun, partner, stated: Over the past three years, Genecradle has deeply engaged in gene therapy and achieved significant development, industrializing the technologies accumulated over more than two decades by Mr. Wu and Mr. Dong. The company successfully conducted multiple investigator-initiated clinical studies, accumulating a large amount of first-hand biological evidence, continuously improving the design of gene drugs, and achieving in-depth research on dozens of target genes, establishing a series of gene tool libraries. At the same time, relying on more than ten years of experience in AAV production technology, the company has significantly reduced the manufacturing cost of gene drugs, greatly enhancing the accessibility of gene therapy. Currently, Genecradle has obtained 6 INDs, among which the gene therapy drug for SMA is expected to cover patients with moderate to severe conditions and various subtypes, with the potential to become the BEST IN CLASS treatment globally. Recently, the company launched the world's first registrational clinical trial for infantile Pompe disease gene therapy, with the potential to become the FIRST IN CLASS treatment. Since Genecradle’s angel round, Oceanpine Capital has accompanied the company in its growth journey. We wish Genecradle to grow into a world-class gene therapy pharmaceutical enterprise as soon as possible, benefiting more patients and creating greater social value.

Oriental Fortune was founded in 2006 and is a well-known domestic private venture capital institution in China, with a fund management scale exceeding 35 billion RMB. It focuses on investing in target companies with growth potential and IPO prospects. It has invested in more than 550 projects, with over 140 exits and 70 IPOs. Oriental Fortune was the first to implement a strategy of investment specialization and service platformization. Its key areas of focus include information technology, new energy and new materials, healthcare, and advanced semiconductor manufacturing. It actively provides value-added services to invested enterprises, enhancing their profitability and delivering satisfactory capital appreciation returns to investors. With a professional investment management team and solid investment performance, it successfully manages four national-level funds. Additionally, it has consistently ranked among the top 20 best venture capital institutions in China for several years and has been recognized as one of the top 10 venture capital institutions in China.