Drug Farm Secures $27 Million in First Tranche of Series C Financing to Advance First-in-Class Therapies for Hepatitis B and Cardiorenal Diseases into Clinical Trials

VCBeat learned that recently, Drug Farm, a biotech company developing innovative immunotherapies using genetics and artificial intelligence technology, has completed the first round of its Series C financing, totaling $27 million. This round of financing was led by the digital healthcare industry fund YD Capital, with participation from Jiashan State Investment and Beta Fund, while existing shareholders Windward Venture Capital and DT Capital continued their support. Holey Capital served as the exclusive financial advisor for this round of financing.

It is reported that Drug Farm will use this round of financing to continue the clinical trials of DF-006 and advance the First-in-class new drug DF-003 to Phase I clinical trials.

DF-006, a First-in-class new drug, is an oral ALPK1 agonist that effectively activates innate immunity in the liver, triggering a robust immune response. Preclinical anti-HBV activity data of DF-006 has recently been published in the top journal in the field of hepatology, *Hepatology*.

DF-006 has successfully completed the single and multiple ascending dose evaluations in the first and second parts of Phase I clinical trials (ACTRN12621000592842) involving healthy subjects. DF-006 will be evaluated in chronic hepatitis B patients in the third part of a global multicenter trial. Professor Ed Gane, Professor of Medicine at the University of Auckland, Chief Hepatologist at Auckland Hospital, transplant physician, and Deputy Director of the New Zealand Liver Transplant Unit, commented: "There is still a lack of effective treatments for hepatitis B, and DF-006 represents a novel mechanism of therapy that can activate the body's own immune system to help clear viral infections. We look forward to further testing DF-006 in both treatment-naïve and previously treated chronic hepatitis B patients."

At the same time, Drug Farm successfully selected DF-003 as the clinical candidate drug for kidney disease, cardiovascular disease, and the rare ophthalmic genetic disease ROSAH. DF-003 is another First-in-class new drug launched by Drug Farm. As an oral ALPK1 kinase inhibitor, it will enter Phase I clinical trials in 2023. Dr. Henri Lichenstein, CEO and Director of Drug Farm, commented: "Hundreds of millions of people worldwide suffer from cardiovascular and chronic kidney diseases. We have validated ALPK1 as a new target associated with cardiorenal diseases and developed the first clinical candidate drug as an ALPK1 inhibitor."

"ROSAH is a rare genetic disorder that progressively leads to blindness, caused by ALPK1 mutations resulting in chronic activation," said Dr. Yvan Jamilloux, Professor of Internal Medicine at Lyon University Hospital in France. "DF-003 is a potent ALPK1 kinase inhibitor, and we believe DF-003 holds great promise as a targeted, personalized medicine specifically addressing the root cause of ROSAH."

Professor Xu Tian, Founder of Drug FarmSince its establishment in 2015, Drug Farm has adhered to original innovation, utilizing piggyBac transposon technology to discover entirely new drug targets in mice and developing deep learning algorithms to research and develop First-in-class drugs. Currently, the first product has completed Phase I clinical trials in healthy subjects, and the second drug is about to enter the clinical stage. We are very pleased to witness this series of breakthrough advancements, and we extend our gratitude to both new and existing investors for their support. We will also remain steadfast in continuing our innovation.

Mr. Ding Yameng, Founding Managing Partner and Chief Operating Officer of Haoyue CapitalWe are honored to assist Drug Farm in completing this round of financing. Relying on Professor Xu Tian's piggyBac transposon technology, Drug Farm has innovatively built two core technology platforms: IDInVivo+ and MedChem5, which combine the capabilities of novel target discovery and AI-driven drug design. The company has successfully discovered multiple innovative targets and developed several First-in-class drugs. We believe that, with the support of capital, Drug Farm will continue to accelerate preclinical and clinical progress. We also hope to work hand in hand with the Drug Farm team to witness continuous breakthroughs in areas such as hepatitis B, cardiovascular, and renal diseases, providing better options for patients as soon as possible.

Drug Farm is a biotechnology company dedicated to the discovery of drug targets and the development of original new drugs (First-in-class), focusing on innovative therapies for hepatitis B, cancer, and autoimmune diseases. Drug Farm's unique IDInVivo+ platform combines breakthrough technologies in genetics and artificial intelligence to discover new treatments, enabling the direct selection of gene targets in immunocompetent live animals. Using the IDInVivo+ platform, Drug Farm has discovered new innate immune pathways and targets, and is rapidly advancing multiple original new drugs into clinical development.

HaoYue Capital, founded in January 2014, is a leading investment bank in China that focuses on the healthcare industry. Headquartered in Shanghai, the company has regional offices in Beijing and Shenzhen. HaoYue Capital is committed to leveraging capital and research-driven insights to help outstanding companies in China's healthcare sector successfully access the capital markets, creating added value for its clients. The partnership team at HaoYue Capital consists of seasoned investment bankers with deep expertise in China’s healthcare industry, and the professional team comprises over 70 members. HaoYue Capital consistently tracks trends and market dynamics in healthcare investments, covering areas such as innovative pharmaceuticals, advanced medical devices, IVD and life sciences, health services, and digital healthcare across various specialized sectors. As of 2022, HaoYue Capital has completed over 300 projects with a cumulative transaction value exceeding tens of billions of US dollars; among these, more than 50 mergers and acquisitions were completed, with a total transaction amount surpassing 5 billion US dollars. In 2022, HaoYue Capital executed over 50 private equity financings, M&A integrations, and complex spin-off transactions involving listed companies, with a total transaction value reaching several billion US dollars, maintaining comprehensive leadership across all sub-sectors of the healthcare industry.