Neurophth Biotechnology Completes Nearly RMB 400 Million Series C Financing Co-led by SDIC Capital and Sequoia China

On November 22, 2021, Neurophth, China's first gene therapy company focused on ophthalmic diseases, announced the completion of a nearly 400 million RMB C-round financing. This round was jointly led by SDIC Fund Management and HongShan, with participation from renowned investment institutions such as Sunlight Asset Management Co., Ltd. and China Merchant Bank International Capital Management (Shenzhen) Ltd. The proceeds from the C-round will be used for the internationalization of core products, continuous advancement and enrichment of the company’s R&D pipeline projects, and enhancement of the company’s production capabilities to international standards.

At the beginning of this year, Neurophth completed a 400 million RMB B-round financing led by Guofang Capital and Huaxin Investment, with participation from Yuanfeng Capital, Oriza Holdings, Huiyuan Capital, HongShan, and Northern Light Venture Capital. In early 2020, the company completed a 130 million RMB A-round financing led by Sequoia Capital China and Fosun, with participation from Northern Light Venture Capital. Previously, in August 2018, the company completed an angel round financing led by MiracleLight, a subsidiary of BGI, with participation from Mint Venture Capital and Northern Light Venture Capital.

Neurophth's core product NR082 (rAAV2-ND4, NFS-01) is China's first in vivo gene therapy drug for ophthalmology to obtain clinical trial approval. The first patient was dosed in the 1/2/3 phase clinical trial in June this year. An independent production base of 8,000 square meters, built in compliance with international (NMPA, FDA, EMA) GMP standards, was completed in September this year. Neurophth has developed high-yield and stable adherent and suspension production processes, which can meet the commercial production needs of products with different characteristics and scales.

Professor Bin Li, Founder and Chairman of Neurophth"We are highly honored to have the participation of top investment institutions in the biopharmaceutical field. This is not only a recognition of the company's past achievements but also a driving force for Neurophth’s continued rapid development in the future. Gene therapy can greatly improve the quality of life for patients and their families, and the support from top-tier investments has made us more confident in the company’s mission and vision. In the future, Neurophth will leverage the advantages of combining capital with a gene therapy development platform, strengthen new drug research and development, cultivate professional talent reserves, accelerate commercialization efforts, target the forefront of global technology, and become a leader in the field of global ophthalmic gene therapy."

Neurophth CEO Dr. Yingming LuStated: "Neurophth has achieved gratifying results this year, with the company's core product NR082 entering the clinical trial stage for registration in China. All of this would not have been possible without the long-term trust and strong support of our investors! Meanwhile, Neurophth has also made many exciting advancements in other areas, including the gene therapy for ND1-mediated Leber's Hereditary Optic Neuropathy (LHON) now entering clinical trials in China, as well as gene therapies for glaucoma and diabetic retinopathy, which will soon move into the preclinical stage. Notably, we are also in close contact with other institutions, hoping to work together to expand our R&D capabilities and platform technology to extraocular diseases and bring these products to the global market. We will continue to enhance our AAV ophthalmology gene therapy and CMC production platforms, striving for greater breakthroughs in technological innovation and industrialization, to deliver safe, effective, and affordable drugs to patients."

SDIC Capital Life Science Team"We have been paying long-term attention to gene therapy, and we especially recognize the broad application prospects of AAV in gene therapy. Neurophth is a leading company in China's gene therapy sector and one of the few enterprises that has truly advanced its products to the clinical stage. China Merchants Capital is delighted to join hands with the Neurophth team at this moment to jointly promote the company’s growth and contribute to the development of China’s gene therapy industry. We look forward to Neurophth’s products reaching the market as soon as possible to benefit patients worldwide."

HongShan Managing Director Cuiping GuHongShan stated: "Over the past year and a half, we have witnessed encouraging progress by Neurophth in technology R&D, clinical transformation, production, and commercialization layout. We highly recognize the strong technical capabilities and execution of Professor Li Bin's team. HongShan will continue to support the long-term development of Neurophth. We look forward to the company bringing breakthrough treatment solutions to patients worldwide as soon as possible, and believe that Neurophth will become an innovative technology enterprise with international competitiveness."

Neurophth is China's first gene therapy company focused on ophthalmic diseases. With subsidiaries in Wuhan, Suzhou, Shanghai, and San Diego, USA, Neurophth is committed to discovering and developing gene therapies for patients with genetic disorders on a global scale. Our validated AAV platform has been published in Nature - Scientific Report, Ophthalmology, and EbioMedicine, providing proof-of-concept data for research into gene therapies targeting the retina. Our most advanced research candidate, NR082 (core project NFS-01), which is being developed to treat ND4-mediated Leber Hereditary Optic Neuropathy (ND4-LHON), has been granted Orphan Drug Designation (ODD) by the US FDA. The evaluation of NR082 in Phase 1/2/3 clinical trials was approved by China’s NMPA in March 2021, with the first subject enrolled in June 2021. The company’s pipeline also includes ND1-mediated LHON, autosomal dominant optic atrophy, optic neuroprotection (such as glaucoma), vascular retinopathy (such as diabetic retinopathy), and five other preclinical candidates. Neurophth has initiated internal production expansion to support future commercial needs at its Suzhou facility. To learn more about us and our growing pipeline, please visit www.neurophth.com.

SDIC Capital focuses on advanced manufacturing industry investment, emphasizing technological innovation, excellent entrepreneurs, and team value. Key investment areas include intelligent manufacturing, new energy intelligent vehicles, life sciences, information and communication technology, etc., committed to promoting the green, digital, and service-oriented development of the manufacturing industry. The team has cumulatively managed assets exceeding 100 billion RMB, with investors including financial institutions, social security funds, state-owned and private capital.

HongShan has always been committed to helping entrepreneurs build enduring great companies, bringing global resources and valuable historical experience to its portfolio companies. Over the past 49 years, HongShan has invested in numerous innovative companies and leaders of industry trends. As "the entrepreneur behind the entrepreneurs," HongShan China Fund focuses on investment opportunities in three areas: technology/media, healthcare, and consumer goods/services. In the past 16 years, HongShan China Fund has invested in nearly 600 companies with distinct technological features, innovative business models, and high growth and development potential.

Sunlight Life Insurance Co., Ltd. was established on December 17, 2007, with a registered capital of 18.3425 billion yuan. It is a national professional life insurance company under Sunlight Insurance Group Co., Ltd. Since its establishment, Sunlight Life has maintained good development momentum and continuously increasing value. To date, the company has opened 33 secondary-level branches and nearly 1,000 third- and fourth-level branches, providing customers with life, pension, medical, health, accident, and other insurance coverage through professional services.

China Merchant Bank International Capital Management (Shenzhen) Ltd. ("CMB International Capital") is a wholly-owned subsidiary of CMB International Financial Limited, shouldering the important mission of leveraging China’s vast emerging financial market through dual linkages between domestic and overseas operations as well as investment banking and commercial banking. Since its establishment, CMB International Capital has accurately grasped industry development trends, acted accordingly, and played a leading role in several famous investment cases within the industry, making it one of China’s leading private equity investment institutions. Hubei Yangtze River CMB Industrial Fund Management Co., Ltd. is a wholly-owned subsidiary of CMB International, managing the Hubei Yangtze River CMB Industrial Fund, a market-oriented industrial fund jointly established by CMB International and the Hubei Provincial Government. The fund has made significant strategic investments in high-tech fields such as healthcare, new energy, and intelligent manufacturing, and will continue to support the rapid development of high-tech enterprises through capital.