GeneCradle Therapeutics Secures Nearly RMB 100 Million in Angel Funding to Advance Rare Disease Gene Therapy Pipeline

Beijing Genecradle Therapeutics Co., Ltd. (hereinafter referred to as “Genecradle”) recently announced the completion of its angel round financing, amounting to nearly RMB 100 million, led bySME Development Fund Managed by Oriental Fortune Capital,Jointly invested by YuanSheng Venture Capital, Saiying Capital, and XieNuo ChenTu Fund, the proceeds from this round of financing will be primarily used to advance the first three gene therapy projects in the company’s product pipeline into the Investigational New Drug (IND) stage.

Genecradle, founded in 2018, is a biotechnology company specializing in the research and development of novel gene therapies. It was co-established by Dr. Wu Xiaobing, founder of the Beijing Ruixi Institute for Gene Therapy Technologies for Rare Diseases, together with the new drug R&D team from Beijing Wujiahe Molecular Medicine Institute Co., Ltd. The company focuses particularly on rare diseases with unmet clinical treatment needs. Currently, most rare diseases lack corresponding therapeutic drugs. Although the Premier proposed favorable measures at the State Council executive meeting to reduce or exempt value-added tax (VAT) on medications for rare disease patients, such cost reductions are meaningless if there are no available treatments.

Genecradle operates on the philosophy that “gene therapy will inevitably solve more disease challenges and benefit human health,” with the mission to “advance Chinese gene therapies for rare diseases from basic research to clinical application and commercialization,” striving to transform “untreatable” conditions into “one-and-done” cures.

The company’s product portfolio primarily consists of gene therapies based on viral vectors, particularly adeno-associated virus (AAV) vectors. The initial projects employ an AAV-mediated gene replacement therapy strategy, while additional gene therapy programs utilizing antibody gene therapy, gene editing, and RNA interference (RNAi) approaches are maintained as reserves. Currently, the products in the company’s pipeline mainly target life-threatening rare diseases, such as neuromuscular disorders, inherited metabolic diseases, and lysosomal storage disorders, as well as prevalent conditions like glaucoma and hypertriglyceridemia, where existing small-molecule or protein therapeutics demonstrate limited efficacy. Three pre-IND candidates have completed pharmacological and efficacy studies along with GMP-compliant manufacturing, and the company plans to submit Investigational New Drug (IND) applications within the year to initiate clinical trials.

In addition, the company has made forward-looking strategic arrangements in areas such as AAV viral vector capsids, gene regulatory elements, gene optimization, and production technology and process improvements.

Dr. Wu Xiaobing, President of Genecradle, is an expert in the field of viral vector research. He has accumulated extensive experience in the research and application of AAV vectors and gene therapy. He has assembled a team of dedicated technical experts committed to long-term development in the field of gene therapy. Believing that gene therapy is a disruptive technology in medicine, he continues to challenge and overcome technical bottlenecks, working alongside clinical experts to advance the development of gene therapy technologies and bring hope for a complete cure to the vast population of patients with rare diseases.

Dr. Wu Xiaobin, President of Genecradle

Dr. Wu Xiaobin introduced that gene therapy based on AAV viral vectors has consistently been a hot topic in the gene therapy sector in recent years. Due to its favorable safety profile, broad host cell range, low immunogenicity, and prolonged expression of exogenous genes in vivo, AAV is widely recognized as the most extensively applied and promising vector for gene therapy. She stated, “Gene therapy is flourishing internationally, with a number of products currently in Phase I/II/III clinical trials, and three AAV-based products already approved for market launch. In China, the majority of AAV gene therapy drugs are still in the preclinical stage, with only a few having recently entered early-phase clinical trials. The positioning, philosophy, mission, and vision of Genecradle have gained high recognition from both the industry and investors. This financing will significantly accelerate the progress of our projects into clinical trials. We sincerely appreciate the trust placed in us by Genecradle’s investors. Genecradle will live up to expectations and truly deserve its reputation as the ‘GeneCradle’—the cradle of numerous gene therapy drugs.”

“Gene therapy for genetic diseases,” said Dr. Wu Xiaobing. “Rare diseases are mostly genetic disorders, the majority of which are monogenic. Traditional medications are ineffective against these conditions, let alone curative. Rare diseases are like ‘sesame salt’ evenly sprinkled across the human world; wherever there are people, there are rare diseases. Gene therapies bring hope of a cure to previously untreatable conditions, and hope is the most precious thing in this world. It is from this that our sense of mission arises.”

Dr. Wu Xiaobin worked at the Institute of Virology, Chinese Center for Disease Control and Prevention (CDC), for 15 years. As an expert in the field of gene therapy and its core technology, “viral vector systems,” he has repeatedly undertaken and participated in national-level research projects, including the National High-Tech Research and Development Program (863 Program), the National Basic Research Program (973 Program), Major National Science and Technology Projects, the National Key Technology R&D Program, and the National Natural Science Foundation of China. In recognition of his contributions to viral vectors, he was awarded the First Prize for Scientific and Technological Progress by the Ministry of Health, the Second Prize for National Scientific and Technological Progress, and the Important Contribution Award for the 15th Anniversary of the 863 Program.

In 2003, Dr. Wu Xiaobing, serving as the part-time Technical Director of Benyuan Zhengyang Company, led his team to submit the application for China’s first adeno-associated virus (AAV) gene therapy clinical trial, securing Phase I clinical trial approval from the National Medical Products Administration (NMPA). In 2014, Dr. Wu resigned from his public position and established a non-profit R&D institution—the Beijing Ruixi Institute for Gene Therapy Technologies for Rare Diseases. Under his leadership, the team dedicated itself to research on gene therapies for rare diseases, conducting preclinical studies in animal models for conditions such as MPS IIIA, SMA, Pompe disease, X-ALD, GM1 gangliosidosis, and MPS II, thereby achieving a series of research breakthroughs. In October 2020, the Ruixi Institute team officially joined Genecradle to continue advancing the clinical translation of its early-stage projects.

Regarding the investment in Genecradle,SME Development FundMr. Wang Peijun, Partner of the Medical Team“He stated, ‘Genecradle’s founding team was among the first in China to engage in research on the mechanisms of gene therapy, clinical studies, and process development, boasting profound academic expertise and extensive industry experience. In recent years, under the leadership of its two founders, Dong Xiaoyan and Wu Xiaobing, Genecradle has kept pace with international technological advancements, pioneered innovations, and achieved numerous groundbreaking results in vector technology, genetic components, and clinical protocols. We believe that our continued investment in Genecradle will help the company’s team realize its industrialization ambitions at an earlier date.’”

Mr. Li Guochun, Partner at Yuansheng Venture Capital“He stated, ‘With the market launch of Novartis’s gene therapy drug Zolgensma, it has spurred opportunities across the entire gene therapy sector. Genecradle focuses on the treatment of rare diseases, boasting a robust product pipeline and leading-edge technology. Having known Professor Wu Xiaobing for many years, I deeply admire her rigorous work ethic. I am confident that Genecradle will bring greater benefits to patients in China’s gene therapy field.’”

Mr. Zhang Zhiyong, Managing Partner at Saiying Capital“It stated: ‘Gene therapy is one of the most important directions in the future life sciences field. The core team of Genecradle has been deeply engaged for many years in AAV vector-based gene therapy for rare diseases, with a rich pipeline of independently developed products in research. Targeting various unmet clinical needs such as spinal muscular atrophy and lipid metabolism disorders, the company leverages its advanced viral vector production platform to develop products with significant commercial potential. We believe that Genecradle will become a leading enterprise in China’s new drug R&D for gene therapy, and we will fully leverage our advantages in industry integration and capital support to facilitate the company’s rapid growth.’”

Xie Nuo Chen Tu Investment also acknowledged this.“The founder of Genecradle has accumulated 28 years of academic research experience in the field of gene therapy and is also a pioneer in the industrialization layout of rare disease gene therapy in China. The company boasts a team with profound expertise in drug development and manufacturing processes, as well as exceptional execution capabilities. ‘No rare disease should go unseen; we aim to benefit every patient in need of a cure.’ It is our privilege to partner with the Genecradle team, which combines social responsibility with outstanding vision. Xeno Investment will continue to support the growth of outstanding enterprises and promote the industrialization of cutting-edge technologies.”

SME Development Fund (Shenzhen Nanshan Limited Partnership) was directly funded by China National SME Development Fund Co., Ltd., and jointly established with limited partners (LPs) including Shenzhen Government Guidance Fund, Shenzhen Nanshan District Government Guidance Fund, Shanghai Pudong Development Bank, CCB Life Insurance, Vanke Co., Ltd., and Shanxi Securities. The fund’s general partner (GP) is Shenzhen Fuhai SME Development Fund Equity Investment Management Co., Ltd., a subsidiary controlled and managed by Shenzhen Oriental Fuhai Investment Management Co., Ltd. The fund primarily focuses on national strategic emerging industries such as biopharmaceuticals, semiconductors, artificial intelligence, information security, and enterprise-level services.

Yuan Sheng Venture Capital is an investment firm focused on early-stage and growth-stage healthcare and medical sectors, headquartered in Suzhou BioBAY with a global reach. Currently managing approximately RMB 6 billion in assets, the firm has completed investments in over 100 high-quality projects, primarily spanning new drug development, medical devices, in vitro diagnostics (IVD), and healthcare services. It has delivered substantial investment returns and has been repeatedly recognized as one of the Top 10 Venture Capital Funds in China’s healthcare sector and as one of the most active healthcare investment institutions in China. Yuan Sheng Venture Capital brings together a team of seasoned professional investors and a global advisory board of top-tier scientific experts, possessing extensive experience in entrepreneurship, venture capital, and corporate operations within the biopharmaceutical industry and related fields. Leveraging its focused strategy and abundant industry resources, Yuan Sheng Venture Capital is committed to becoming one of the most successful healthcare and pharmaceutical venture capital funds in China.

Saiying Capital is a professional private equity investment management firm specializing in the pharmaceutical, healthcare, and life sciences sectors. It was jointly established in 2016 by Saisheng Pharmaceutical (SZ: 300485), Yizhuang State-owned Investment, and the Yizhuang Biopharmaceutical Industrial Park. The firm manages three specialized pharmaceutical venture capital funds: the "Beijing Yizhuang Biopharmaceutical M&A Investment Fund (Phase I)," the "Beijing Yizhuang Biopharmaceutical Industry Investment Fund (Phase II)," and the "Beijing Yizhuang SME Biopharmaceutical Venture Capital Fund (SME Fund)," with total assets under management exceeding RMB 2 billion. To date, Saiying Capital has completed investments in more than twenty healthcare projects, earning consistent recognition from its fund investors and project partners.

Guangzhou Xienuo Chentu Equity Investment Management Co., Ltd. was registered and established by Xienuo Investment Group on December 25, 2014. It is a private equity fund management company specializing in primary market equity investments. Xienuo Chentu focuses on selecting high-quality non-listed companies as medium-to-long-term investment targets in industries such as new energy vehicles, new materials/semiconductors, and general health. In the field of general health, Xienuo Chentu has proactively laid out its strategy in frontier areas, guided by innovation and responsibility, and with a pragmatic and efficient style, it concentrates on identifying companies within the industry that possess both competitive advantages and social investment value.