Qihan Bio Secures $67 Million in Series A++ Financing to Advance IND-Enabling Studies and Manufacturing of Novel Allogeneic Cell Therapies

VCBeat has learned at the earliest opportunity that,Hangzhou Qihan Biotech Co., Ltd. (hereinafter referred to as “Qihan Biotech”) has completed a $67 million Series A++ financing round.This round of financing was participated in by strategic investors including Lilly Asia Ventures and Matrix Partners China, with continued support from existing shareholders such as Sequoia Capital and CMB International. The funds raised will be primarily used to advance Qihan Biotech’s Investigational New Drug (IND) studies and production for its cell therapy initiatives, particularly its low-immunogenicity projects.

As of now, Qihan Biotech’s cumulative Series A financing has exceeded US$100 million.

In recent years, cell therapy has rapidly emerged as a critical weapon in the fight against cancer and other severe diseases; however, there remains significant room for technological optimization in current cell therapies:Autologous cell therapy or customized cell therapy avoids immune rejection to some extent, but its high treatment costs deter many patients. Meanwhile, most allogeneic cell therapies require long-term use of immunosuppressive drugs due to the risk of rejection, in order to prevent the patient’s immune system from attacking and rejecting the infused cells.

To address these therapeutic bottlenecks, the research team at Qihan Biotech leveraged its profound expertise in transplant immunology and utilized high-throughput multi-gene editing technology to develop immunocompatible human stem cells that evade host immune attacks. This breakthrough offers new hope for life to millions of patients and their families worldwide.

Given the ability to address the critical issue of rejection in transplanted cells, off-the-shelf universal cell therapy products are inevitably a key focus for Qihan Biotech. Compared with autologous immune cell therapy products, universal cell therapy products target a broader patient population and are more affordable for patients. In 2020, Qihan Biotech began to intensify its research and development efforts in cell therapy products.

By leveraging the extensive experience accumulated by the research team in animal models of xenotransplantation,Qihan Biotech can rapidly identify genes in human cells that influence immune rejection responses, and by editing these genes, enhance the immunocompatibility of the cells, thereby enabling low-risk, or even risk-free, allogeneic cell therapy.

In addition to innovations in target editing, Qihan Biotech advances the editing process by directly editing stem cells, then inducing the edited stem cells to proliferate and differentiate into large quantities of the required immune cells. This approach not only reduces production costs but also improves gene-editing efficiency and addresses off-target effects, significantly enhancing the clinical accessibility of cell therapy products.

Qihan Biotech has begun applying this method in the production of clinical-grade GMP stem cells, with its first batch of cell therapy products for human clinical trials progressing smoothly.Given the long research cycle and high complexity associated with xenotransplantation products, Hangzhou Qihan Biotech Co., Ltd. is likely to achieve commercialization in the field of cell therapy earlier than in xenogeneic organ transplantation.

“We are delighted to have secured financial support from highly renowned industrial capital and investment firms such as Lilly Asia.”Dr. Luhan Yang, Founder and CEO of Qihan BiotechQihan Biotech stated to VCBeat, “The entry of new investment institutions will further expand Qihan Biotech’s investor base. This not only helps us focus on the development of allogeneic cell therapies but also provides strong support for clinical research into xenotransplantation. Furthermore, it significantly boosts our GMP manufacturing capabilities, enabling breakthrough advancements and scalable expansion of our therapies. We look forward to fully unlocking the potential of allogeneic cell therapies and believe that Qihan will eventually make cell and organ therapies accessible to every patient in need.”

Hangzhou Qihan Biotech Co., Ltd. (Qihan Biotech), founded in 2017 in Hangzhou, China, is a biotechnology company dedicated to developing cell and organ products using multi-gene targeting technology. Leveraging its high-throughput gene editing platform and profound understanding of immunotransplantation, Qihan Biotech aims to develop immune-compatible allogeneic cell therapies and xenogeneic organ therapies, bringing hope to millions of patients and their families worldwide. The company has raised over $100 million in cumulative funding and is currently in the pre-IND preparation stage for its allogeneic cell therapy programs.

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