Bowave Pharmaceuticals Secures Over RMB 400 Million Series A Financing Led by Zhengxin Valley to Accelerate siRNA Drug Development

VCBeat learned第一时间 that recently, Argo Biopharma has completed an A round of financing exceeding 400 million yuan.This round of financing was led by Loyal Valley Capital, with participation from CPE Yuanfeng, Daoyuan Capital, 3E Innovation Investment, and Jinchuan River United Venture Capital, among other well-known industry institutions.This round of financing will be mainly used to advance the IND applications for cardiovascular disease and rare disease pipelines, promote the discovery of preclinical candidate drug molecules (PCC) across multiple pipelines, including hepatitis B, autoimmune diseases, and neurological disorders, as well as the construction of research and development centers, pilot workshops, and team building.

Argo Biopharma was founded in April 2021, focusing on the development of siRNA drugs and established by several returned scientists with extensive experience in siRNA drug development. The company is committed to developing a new generation of siRNA drugs to provide better treatment options for patients worldwide. The team has years of professional expertise in all aspects of RNAi drug development, including nucleic acid sequence design, chemical modification, GalNAc delivery technology, extrahepatic delivery technology, oligonucleotide synthesis, and CMC. Previously, Argo Biopharma completed an angel round of financing worth tens of millions of yuan, with investment from Apricot Capital, which specializes in life science investments.

siRNA Drugs: A New Frontier in Medicine with Strong PotentialsiRNA drugs are an emerging new technology that has gained prominence in recent years. They boast multiple druggable targets, strong efficacy, good safety profiles, and low dosing frequency. siRNA drugs exemplify the successful translation of basic science into practical applications. In 1998, American scientists Andrew Z. Fire and Craig C. Mello discovered the phenomenon of gene silencing and the underlying RNA interference mechanism (RNAi) while studying the regulation of gene expression in biological life processes. In 2006, the two scientists were awarded the Nobel Prize in Physiology or Medicine for their discovery of RNAi. The Nobel Prize Committee at the time remarked, "The widespread application of RNAi in basic science has made it a new technique for studying gene function, and may even become a novel approach to disease treatment in the future." Sixteen years later, the evaluation by the Nobel Committee has become a reality, as siRNA drugs have been developed based on the RNAi mechanism. To date, four siRNA drugs have been approved globally, one is under review, and 89 clinical pipelines are currently underway, with more than one-third of them in Phase II/III clinical trials. The therapeutic areas covered are broad, including cardiovascular diseases, rare diseases, neurological disorders, viral hepatitis, ophthalmic diseases, cancer, and more. siRNA drugs have clearly become one of the most promising frontiers in the global pharmaceutical industry. According to statistics, by 2022, over 49 siRNA pipeline collaborations had been completed worldwide, with a total transaction value exceeding $16.6 billion.

It is foreseeable that siRNA drugs, as a new technological drug different from small-molecule chemical drugs, large-molecule antibodies, and cell therapy, will play an increasingly important role in the pharmaceutical field by relying on their unique advantages. They can effectively address unmet clinical needs and provide a safeguard for high-quality human life.

Since its establishment, Argo Biopharma has been actively advancing multiple preclinical R&D pipelines. Currently, several pipelines are in the IND-enabling stage, and it is expected that multiple Phase I clinical pipelines will be initiated by 2023. At the same time, the company places great emphasis on patent protection and has filed several PCT patents related to its delivery systems and pipelines. On the technical platform level, it holds advantages over leading companies like Alnylam, such as longer drug efficacy duration. Notably, the company’s pipeline layout reflects deep insights into disease mechanisms and drug commercialization, with several pipelines expected to achieve a global first-mover advantage in future competition. The company has now built a professional team of 20 people, with a well-established system, laying a solid foundation for future development.

VCBeat Capital stated: We are delighted to lead the Series A financing round for Argo Biopharma. The Argo team has many years of industry experience in the RNAi field, and we have high regard for their deep technical expertise and innovative capabilities. As a new molecular modality beyond traditional small molecule drugs and antibody drugs, RNAi has the potential to reshape the competitive landscape of the pharmaceutical market and offer patients more effective and convenient treatment options. It is our privilege at Loyal Valley Capital to participate in this transformative journey with Argo, and we are committed to supporting the company in building a next-generation RNAi platform, making efforts to advance pharmaceutical innovation in China into a new era.

Cao Xia, Managing Director of CPE Yuanfeng, stated:siRNA represents a new generation of biotechnology platforms. Unlike traditional small-molecule and large-molecule drugs, which mostly target protein sites, siRNA has the potential to address previously undruggable targets and indications, making it a core force in the "third revolution of biomedicine." It could be a revolutionary technology for the entire innovative drug field. CPE Yuanfeng has long been focused on innovative drug companies that represent the cutting-edge trends in technology. The Argo team has demonstrated solid R&D capabilities and highly efficient execution in the siRNA field, with multiple pipelines already achieving the fastest research progress in China. We are honored to collaborate with such outstanding entrepreneurs, committed to bringing better clinical utility drugs to Chinese patients and contributing to a healthier China.

Dachuan Zhang, partner of Daoyuan Capital, stated: The era of small nucleic acid drugs has arrived, and startups in this field are constantly emerging in China. Argo Biopharma is one of the most promising among them. VCBeat Capital is honored to participate in Argo's current round of financing. We have high regard for the team's accumulated experience and innovative approach in the siRNA pharmaceuticals field, and we believe that in time, the company will grow into an industry leader.

Yin Zheng, Managing Partner of 3E Innovative Investment, stated：As an emerging therapeutic approach, small nucleic acids have undergone decades of technological development, and their applications in clinical treatment are rapidly expanding. The founding team of Argo Biopharma has extensive industry experience and deep technical expertise in the siRNA field, demonstrating strong team execution. 3E Innovative Investment is delighted to partner with Argo Biopharma in exploring the future of the industry and providing patients with more high-quality and efficient small nucleic acid drugs.

Dr. Wang Xiaoyan, Partner of Jinsha River United Runpu Medical Fund, statedBiotech companies are actively applying RNAi technology to drug development at an astonishing pace. Since 2018, multiple RNAi drugs have been approved for marketing, especially Inclisiran, which targets PCSK9 and has demonstrated significant advantages in the durability of its efficacy. As a rare platform enterprise in the industry with independent research and development capabilities, Argo Biopharma's founding team has accumulated years of R&D and management experience at leading overseas RNAi companies. While efficiently building a pipeline of liver-targeted products, they are also actively exploring the development of extrahepatic delivery platforms. We look forward to Argo Biopharma advancing steadily on the continuously evolving path of RNAi drug development.

Zhenxin Valley always adheres to the investment values of "long-term, focus, and altruism," and is committed to building the most outstanding investment research team and post-investment management team in China. Covering three major fields: new consumption, healthcare, and advanced manufacturing, through in-depth industry research and active post-investment empowerment, it partners with excellent entrepreneurs to jointly build great enterprises that represent the future growth direction of China's economy and create value for society. Since its establishment in 2015, Zhenxin Valley has invested in a group of outstanding enterprises that represent the future development direction of China's economy, including Bilibili, ByteDance, Pop Mart, Logic Thinking, NetEase Cloud Music, Jiang Xiaobai, Junshi Biosciences, InnoCare Pharma, Hycan Biotech, CARsgen Therapeutics, Henlius, Supcon, Rigol Technologies, Bayi Space, Foxconn Interconnect Technology, O-Net Technologies, Unisoc, and more than 70 other top-notch enterprises.

CPE Yuanfeng is an asset management institution with an international perspective and extensive experience in China. It aims to apply a long-term vision and value investment strategy, focusing on providing innovative investment solutions for leading enterprises in four key areas: healthcare, consumer and internet, technology and industry, and software and enterprise services. Currently, CPE Yuanfeng's managed funds have gained the trust and support of more than 200 institutional investors from home and abroad, with cumulative assets under management exceeding 100 billion yuan. Over the past decade, the company’s core team has invested in over 200 enterprises, accumulating deep industry insights and an extensive resource network. Through a comprehensive investment research system and professional post-investment management capabilities, CPE Yuanfeng is committed to building long-term partnerships with its portfolio companies, supporting their sustainable development. While generating substantial returns for investors, CPE Yuanfeng also drives the overall development of the industries in which its portfolio companies operate, creating positive social impact.

Daoyuan Capital is a leading equity investment institution focused on the medical and health field. It is committed to helping outstanding medical and health enterprises grow rapidly by leveraging the power of capital and industry resources, providing better medical products and services to society, and enhancing human health. Daoyuan Capital manages 11 RMB funds and 2 USD funds, having invested in 75 excellent projects. From 2019 to 2021, 10 of its portfolio companies were listed on the Hong Kong Stock Exchange and the Sci-Tech Innovation Board. It is expected that more than 10 invested companies will be listed on major stock exchanges domestically and internationally in the next two years.

Sanyi Innovation (Beijing) Investment Management Co., Ltd. ("Sanyi Innovation Investment") is a private equity venture capital firm focused on pharmaceutical innovation. The fund's contributors include well-known enterprises in the pharmaceutical industry and prominent investment institutions in the financial sector. Sanyi Innovation Investment adheres to the belief of "scientists, professional managers, and investors forming a trinity—professionals doing professional work, serving health through science." By leveraging capital ties to integrate resources, it supports scientists in transforming scientific research achievements, assists professional managers in building entrepreneurial platforms, and fosters a group of innovative biopharmaceutical companies to make science serve health and benefit patients. Sanyi Innovation Investment is committed to growing together with its invested companies and entrepreneurs, joining hands to develop high-quality and efficient innovative drugs guided by unmet clinical needs.

Jinsha River United Runpu Healthcare Fund is the first healthcare-focused fund initiated by Jinsha River United Capital in 2021. The team has over 10 years of investment experience and has led investments in nearly 50 healthcare projects, possessing extensive industry resources. The fund focuses on pharmaceuticals, IVD, and biotechnology sectors, targeting high-quality projects in both early and growth stages. Currently, Runpu Healthcare Fund has invested in outstanding companies such as Argo Biopharma, Ruijian Pharmaceuticals, NylenGene Biotech, JOINN Biologics, and Changyu Pharmaceuticals.