Neukio Biotherapeutics Completes $50M Series A-1 Financing to Advance Next-Generation iPSC-CAR-NK Cell Therapy Pipeline

VCBeat learned that — Xingyiang (Shanghai) Biotechnology Co., Ltd. (Neukio Biotherapeutics), which focuses on the development of iPSC-CAR-NK products, announced the completion of a US$50 million Series A-1 financing round. This round was led by CD Capital, with participation from Beijing Alwin Asset Management, Ltd. and Kuanyu Capital. Existing shareholders Lilly Asia Ventures, Sherpa Healthcare Partners, and IDG Capital continued to increase their investments. GL Capital served as the exclusive financial advisor. The funds raised will play an important role in accelerating the preclinical validation and clinical development of CAR-NK, an off-the-shelf cell therapy product derived from iPSCs, as well as in team recruitment.

Xingyiang (Shanghai) Biotechnology Co., Ltd. was established in June 2021 in the Life Science Park of the Shanghai Free Trade Zone. It is an innovative biopharmaceutical company focused on the development and industrialization of a new generation of immune cell products. Leveraging the management team's extensive experience in research, development, and industrialization in the autologous CAR-T field, the company has set a pipeline development strategy based on the underlying technology pathway of iPSC-CAR-NK. By combining independent research and development with global leading technology collaborations, Xingyiang aims to develop source-innovative, universal off-the-shelf, mass-producible, next-generation immune cell therapies capable of treating solid tumors, providing clinically valuable treatment options for cancer patients worldwide. In just over a year since its establishment, the company has made significant progress in talent recruitment, facility construction, R&D project advancement, and management system establishment, achieving its predetermined goals.

Dr. Wang Liqun, Founder, Chairman, and CEO of Xingyiang (Shanghai) Biotechnology Co., Ltd., previously served as the founding CEO of Fosun Kite Biotechnology Co., Ltd. Within less than four years, he successfully led the approval and market launch of China's first CAR-T cell therapy drug, Yikaida (Axicabtagene Ciloleucel Injection), laying the foundation for the industrialization of cell therapy in China. Addressing the current challenges faced by autologous cell therapy in clinical applications and commercialization, Dr. Wang is leading the Xingyiang team toward higher goals. Targeting unmet clinical needs, they are leveraging the clonal and unlimited replication potential of pluripotent stem cells, combined with the latest advancements in gene-editing technology, to develop a globally innovative next-generation cell therapy product, bringing benefits to cancer patients.

Dr. Wang LiqunStated: "In just 10 months since launching lab operations, the company has utilized gene-editing and engineering technologies to not only complete the modification of multiple signaling pathways in iPSCs to overcome solid tumor challenges and design CAR, but also achieved remarkable progress in developing innovative production processes for NK differentiation and expansion. Amidst a capital winter that has impacted many biotech startups today, we are honored to receive recognition from CD Capital, Alwin Asset Management, Kuan Yu Capital, as well as existing shareholders Sherpa Healthcare Partners, Lilly Asia Ventures, and IDG Capital for Xingyiang team’s innovative concepts, development capabilities, and project advancements. I am deeply grateful to all our investors and would like to thank GoRoad Capital and JinLu Law Firm for their support in this round of financing. We will push forward with preclinical and clinical validation of our R&D products to reciprocate this support. Cell therapy is currently one of the hottest fields in innovative drug development, with bright prospects and enormous market potential, and iPSC-CAR-NK holds great promise to become one of the most outstanding stars in next-generation cell therapy."

This round of financing was led by CD Capital.Stated: "The transition of drugs from traditional forms such as small molecules and antibodies to the era of cell therapy represents a significant leap in humanity’s drug design and manufacturing capabilities. As autologous CAR-T cell products enter the commercialization phase, an increasing number of issues have emerged that urgently need to be addressed. In the field of cell therapy, Chenzde continues to focus on innovations and breakthroughs aimed at resolving cell universality and overcoming solid tumors. Xingyiang (Shanghai) Biotechnology Co., Ltd., specializing in iPSC-CAR-NK, has rapidly established globally leading technology platforms in both biological innovation and industrial development within a short time after its establishment, demonstrating exceptional execution and advancement efficiency. We look forward to the company, under the leadership of Dr. Wang Liqun, continuing to uphold pragmatism, efficiency, and innovation, leading the industry's development, and bringing the next generation of universal cell therapy products to clinical use as soon as possible for the benefit of patients."

Chenzde Capital is an investment institution focused on innovative medical technology and cutting-edge biotechnology subfields. It is managed and operated by a professional team with a senior background in the medical industry and oversees multiple RMB funds and USD funds. Chenzde Capital adheres to the investment philosophy of "Focus, Perfection, and Reputation." Based on deep industry resources and years of extensive research and cultivation in the medical field, it gains early insights into the latest international technological trends and seizes investment opportunities brought by technological innovation. Chenzde Capital is committed to discovering top-tier companies with industry leadership potential and, through an interconnected and win-win investment methodology and a precise and pragmatic post-investment empowerment system, co-builds an industrial ecosystem with entrepreneurs for mutual growth while delivering sustainable and excellent returns to investors.

Alwin Capital focuses on the frontier fields of life sciences, conducts in-depth research, integrates knowledge with action, explores non-consensus areas, and invests objectively and pragmatically in genuine medical transformation opportunities. The core team of Alwin Capital possesses extensive experience in both the industry and the capital market, believes in the power of research, is committed to long-term investment, steadily builds an enterprise ecosystem, and strives to achieve systematic excess returns for investors.

Broad Pleasant Capital is committed to discovering and supporting medical enterprises that promote the health of all humanity. It focuses on innovative drugs, innovative medical devices, and other niche areas, adopting diversified investment strategies to cover every stage of enterprise development, including start-up, growth, and maturity stages. It also cultivates seed-stage project sources, invests in, and assists in incubating high-quality seed-stage projects to help enterprises create value.

Lilly Asia Ventures (LAV), established in 2008, is a leading venture capital fund focused on investments in the life sciences and healthcare industries, with offices in Shanghai, China; Hong Kong, China; and Silicon Valley, USA. Lilly Asia Ventures is committed to being a trusted partner for outstanding entrepreneurs seeking smart capital, and looks forward to co-creating great companies with top-tier entrepreneurs that deliver breakthrough products to conquer diseases and improve human health.

Sherpa Investment is a professional fund focused on early-stage healthcare investments. It adheres to the investment philosophy of building an industry ecosystem, constructing a portfolio based on an in-depth understanding of major disease treatment areas to address unmet medical needs. The team actively shares operational experience and forward-looking perspectives across the entire industry chain with portfolio companies, proactively promoting internal and external synergies to help businesses achieve rapid growth in performance and value, and gain leading positions in niche markets. Sherpa has invested in industry-leading enterprises in sub-sectors such as medical services, pharmaceuticals, genetic technology, and medical devices, forming comprehensive resource advantages in project sourcing, post-investment value-added services, and exit strategies. From 2011 to 2022, through the experience of four fund cycles and over 100 healthcare projects, Sherpa has had the privilege of working alongside many outstanding entrepreneurs, growing together.

IDG Capital pioneered venture capital investment in China in 1993. Over the years, IDG Capital has consistently pursued long-term value investment and maintained long-term close cooperative relationships with diverse investment partners from around the world. IDG Capital has accumulated extensive investment experience in venture capital, private equity, and industrial development. It focuses on key areas such as consumer goods, chain services, internet and wireless applications, new media, education, healthcare, new energy, and advanced manufacturing. Its investments cover all stages—startup, growth, maturity, and Pre-IPO—with investment sizes ranging from millions to tens of millions of US dollars.