Shanghai Cellular Therapy Group Secures Nearly RMB 500 Million in Series D1 Financing, Advised by China Renaissance

On March 19, 2021, Shanghai Cell Therapy Group Co., Ltd. (hereinafter referred to as “Shanghai Cell” or the “Company”), a leading enterprise in China’s full industrial chain of cell therapy, announced the successful completion of its latest round (Series D1) of financing, amounting to nearly RMB 500 million. This round was jointly invested by Jiuzhou Venture Capital, Shengshi Yangtze River Delta Fund, and CCB International, with existing shareholder Haier Capital further increasing its investment. The proceeds from this financing round will be primarily used for product research and development, recruitment of key talent, and validation of clinical efficacy.

China Renaissance served as the exclusive financial advisor in this transaction.

Shanghai Cell Therapy Group is a leading enterprise in China’s immune cell industry and the world’s first platform company to establish a closed-loop industrial chain encompassing “new drug R&D, clinical oncology treatment, and cell storage services.” Founded in 2013, the company has been dedicated to leveraging cell therapy technologies to combat cancer, thereby extending both the length and quality of life. In 2020, the company achieved a series of significant developmental milestones:

1. The Shanghai Mengchao Cancer Hospital, featuring cell therapy and backed by an investment of RMB 800 million, was officially unveiled at the “Shanghai International Cell Technology Port” in Anting, Jiading District. It has formally become an affiliated hospital of Shanghai University and enabled medical insurance reimbursement. The hospital aims to establish itself as a world-class precision medicine center, a top-tier international clinical research hospital characterized by “immunotherapy+,” and a premier global base for cell therapy clinical trials and translational application platforms, thereby enhancing the clinical medical research capabilities and international influence of Shanghai University.

2. “Non-viral Vector CD19 CAR-T Cell Injection (BZ019)” Officially Enrolls Patients, Initiating Clinical Trials. Shanghai Cell Therapy Group Becomes the First Company in China to Have a CAR-T Cell Therapy Product Prepared Using Non-viral Vectors Approved for Clinical Trials;

BZ019 is currently the first non-viral vector-based CAR-T cell therapy approved for clinical trials in China. The inaugural clinical results of its Baize T-cell technology, which emphasizes both modulating the tumor microenvironment and eradicating tumors, have been formally accepted by the Journal for ImmunoTherapy of Cancer (IF: 9.9). Meanwhile, in the new year, novel Baize T-cell therapies centered on nanobodies have also initiated new clinical studies.

3. Following the establishment of Henan Cell Therapy Group in 2019, the company successively established Beijing Cell Therapy Group, Zhejiang Cell Therapy Group, Hainan Province Cell Therapy Group, and China Cell Therapy Group (Hong Kong) in 2020, committing to providing global customers with exceptional cell products and services.

Meanwhile, the world-class cell production center is scheduled to be completed by the end of April 2021. Covering an area of 25 mu with a construction area of 16,000 square meters, the facility will feature a fully enclosed cell therapy manufacturing system compliant with the highest domestic and international standards for pharmaceutical production, enabling the annual preparation of CAR-T cells for 20,000 patients. In addition, the Nobel Prize Center and the Baize Apartments, spanning a total area of 42,700 square meters to accommodate group talent, are expected to be completed by the end of 2021. The completion of these projects, together with the Mengchao Cancer Hospital Affiliated to Shanghai University, will finalize the core functional layout of the Shanghai Cell International Science and Technology Port.

4. As of now, Shanghai Cell Therapy Group holds 217 patents and 167 registered trademarks. Among these, there are 193 invention patents, including two key technology patents for Baize T cells and one international patent for the key nanobody VHHmab technology. Meanwhile, the company maintains ongoing exchanges and collaborations with 32 Nobel laureates and five academicians from domestic and foreign academies of sciences and medicine.

In 2020, Shanghai Cell Therapy Group continued to advance the development of immunotherapy and strengthen technological innovation. It collaborated with the University of Southern California on research and development of technologies for the infinite expansion of hematopoietic stem cells, and also partnered with Shanghai University and Fortune 500 companies such as Danaher Corporation to explore advancements in precision medicine.

5. Following the full-time appointment of Professor Zhu Weimin, the inventor of rabbit monoclonal antibody technology, as the company’s Chief Technology Officer (CTO), Dr. Liu Changgong, a tenured professor at The University of Texas MD Anderson Cancer Center and MD Anderson Cancer Hospital, also joined Shanghai Cell Therapy Group in 2020. He serves as the Deputy Director of Scientific Research at Mengchao Cancer Hospital Affiliated to Shanghai University and as Chief Scientist at Shanghai Baize Clinical Laboratory, providing technical support for the delivery of specialized cell therapy solutions to clients and patients.

In addition, the company’s development has benefited from favorable policies and strong support from leaders at all levels of government. In 2018, the Shanghai Municipal Committee of the Communist Party of China and the Shanghai Municipal People’s Government issued the Shanghai Health Industry Plan, which proposed the establishment of five medical industry clusters in Pudong, Hongqiao, Jiading, Taopu, and Fenglin areas. At the beginning of 2021, Gong Zheng, Deputy Secretary of the Shanghai Municipal Committee of the Communist Party of China and Mayor of Shanghai, conducted field research in Jiading District, visiting Shanghai Cell Therapy Group and its affiliated Mengchao Cancer Hospital Affiliated to Shanghai University. During the visit, Gong Zheng once again encouraged the company to intensify its technological R&D efforts to benefit more patients.

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