neoX Biotech Secures $10M Pre-A Financing Led by Yuanjing Capital and Sequoia China Seed Fund to Advance AI-Driven Macromolecular Drug Discovery

VCBeat (WeChat ID: vcbeat) has learned that Beijing neoX Biotech Co., Ltd. (neoX Biotech, hereinafter referred to as “neoX”) has announced the completion of its pre-A financing round, raising tens of millions of US dollars. The round was co-led by Yuanjing Capital and Sequoia China Seed Fund, with existing investor Morningside Venture Capital continuing to increase its investment. The funds will primarily be used to expand the talent team, scale up high-throughput laboratory capabilities, and advance collaborative drug development pipelines.

neoX Biotech is a biotechnology company that integrates artificial intelligence (AI) and biophysics for early-stage drug development, specializing in the research and development of large-molecule drugs with a focus on tumor immunotherapy. Previously, neoX Biotech completed its initial funding round of several million US dollars in 2018, jointly invested by Morningside Venture Capital and ZhenFund.

neoX Biotech’s value creation in AI-empowered new drug development is grounded in the fundamental premise that biological systems and drug actions are computable. By conducting in-depth research and characterization of protein-protein interactions (PPIs), the company firmly believes that AI-driven computational design will serve as the engine propelling the pharmaceutical R&D industry chain.

When discussing the consecutive recognition from investors, Dr. Chen Hang, founder of neoX Biotech, first attributed this achievement to the establishment of the team system. “The talent team at neoX Biotech has a strong multidisciplinary background. The R&D team comes from different fields such as computational chemistry, biophysics, artificial intelligence, immunology, and biology. They analyze problems from their respective areas of expertise and work together to address cutting-edge challenges in the biomedical field and conduct drug development.”

neoX Biotech was co-founded in 2018 by Dr. Hang Chen and Dr. Fan Liu. Dr. Chen holds a Ph.D. in Physical Chemistry from the Massachusetts Institute of Technology (MIT), where he conducted research at the MIT Computational Immunology Laboratory under the supervision of a doctoral advisor who is a member of three U.S. national academies and serves as a faculty member across four departments (Physics, Chemistry, Biological Engineering, and Chemical Engineering). During his academic career, Dr. Chen developed deep expertise in interdisciplinary fields, including physical chemistry, machine learning, and immunology. He has also been active in translating his academic expertise into commercial ventures, having been selected as an IDG Capital “30 Under 30” Entrepreneur-in-Residence and having served as Chairman of the MIT China Innovation and Entrepreneurship Forum.

Another co-founder of the company, Dr. Fan Liu, holds a Ph.D. in Computational Chemistry from the California Institute of Technology (Caltech). He specializes in computational models for cancer immunology, leveraging molecular dynamics simulations of protein structures combined with machine learning methods to interpret and predict various protein functions. Dr. Liu previously served as a postdoctoral fellow at the Institute for Systems Biology (ISB) and as a Principal Investigator in Computational Chemistry at BeiGene, where he participated in multiple basic and translational research and development projects for novel drugs.

In addition to its two core founders, neoX Biotech’s core R&D team comprises senior scientists, researchers, and PhD holders from prestigious biomedical research institutions and multinational pharmaceutical companies, including Peking University, Rice University (USA), the Chinese Academy of Sciences, the Helmholtz Centre for Infection Research (Germany), and Merck & Co. (MSD). These team members possess several years of research experience in the interdisciplinary fields of computational physical chemistry and biomedicine. Members of the neoX Biotech R&D team have published relevant academic articles in top-tier international journals such as Nature, Science, and Cell, and their work has been featured by academic media outlets.

neoX Biotech explores the underlying logic of drug discovery from multiple dimensions by studying protein-protein interactions, encompassing multi-level investigations into protein dynamic structures, free energy states, and functional mechanisms. “Our protein simulations must reach the microsecond timescale to achieve biological observability,” stated Dr. Chen Hang. He highlighted the dimensions and references involved in neoX Biotech’s computation-driven macromolecular drug development, which include studies on the energy landscapes between proteins. This series of fundamental research efforts constitutes the technological barrier for neoX Biotech’s AI-driven drug discovery.

Exploring and understanding the underlying logic of biological systems requires validation through extensive high-throughput experiments. neoX Biotech is currently building a high-throughput experimental platform to accumulate experimental data. Dr. Chen Hang stated that, in addition to independently developing its own high-throughput experimental platform, the company also collaborates with firms that already possess such platforms and data, working together to optimize the drug discovery process.

Specifically for antibody drug development, neoX Biotech’s AI-powered antibody discovery platform integrates state-of-the-art artificial neural network algorithms, machine learning, and molecular dynamics simulations. It enables the simulation of directed antibody evolution, generating optimized sequences with specific and effective binding to target antigens, thereby helping pharmaceutical companies accelerate the optimization and screening of antibody sequences.

The second key point recognized by capital lies in the growing recognition and emphasis placed on neoX Biotech within the new drug R&D industry chain.

It is reported that neoX Biotech has established in-depth collaborations with biopharmaceutical companies such as BioDuro. In response to the needs of its partner organizations, the company has leveraged computation-driven drug discovery methodologies to launch various services, including tumor neoantigen prediction/TCR screening and antibody drug discovery.

neoX^TMThe high-throughput neoantigen-TCR computational screening platform can operate independently of large-scale data dependencies. By leveraging gene sequencing data from tumor cells and high-throughput single-cell sequencing data from individual cancer patients, it establishes neoantigen and TCR libraries, predicts their functionality (such as immunogenicity), and identifies optimal personalized cancer vaccines or TCR-T cell therapies.

In its collaboration with BioDuro, neoX Biotech employs high-throughput screening to evaluate candidate sequences at a scale of tens of billions, optimizing target sequences for affinity, specificity, stability, and developability. The platform is designed to address previously challenging targets, such as GPCRs, ion channels, and MHC-presented antigens, thereby enhancing the efficiency of antibody drug development.

In addition, neoX Biotech is developing a universal methodology for the design of small-molecule protein degraders based on PROTAC technology.^TMThe computing platform optimizes the "target protein-PROTAC-E3 ligase" ternary complex by designing protein-protein interfaces and virtually screening PROTAC compound libraries, thereby enabling more efficient design and acquisition of lead compounds.

Notably, neoX Biotech has been selected for the accelerator program at the Merck China Innovation Center and is also a resident company at JLABS Shanghai (Johnson & Johnson), further affirming the company’s innovative momentum within the industry.

Looking ahead, neoX Biotech will generate revenue and accumulate industry experience by integrating AI computing through collaborative development projects with biopharmaceutical companies, while advancing the development of its proprietary pipeline.

Regarding the investment in neoX Biotech,Tian Min, Partner at Yuanjing Capital“neoX Biotech, as an AI-driven drug discovery company, has leveraged its platform-based computational technology to explore multiple domains, including neoantigen-TCR screening, antibody design, and PROTAC development. Regarding industry trends, we maintain a long-term optimistic outlook on the ability of AI technologies to enhance drug discovery efficiency, particularly in tackling challenging targets that are traditionally considered ‘undruggable.’ In terms of team composition, we recognize that the neoX Biotech team demonstrates remarkable completeness and possesses strong interdisciplinary research capabilities. neoX Biotech is emerging as a rising star in the field of AI-driven drug discovery. Yuanjing Capital will continue to support neoX’s growth and remain closely focused on areas where novel drug development is deeply integrated with AI algorithms, thereby promoting the advancement of the AI-enabled new drug discovery industry.”

Cao Xi, Partner at Sequoia Capital China“Sequoia China continues to closely monitor breakthroughs brought by new technologies in the field of new drug development, driving the transition from the traditional ‘trial-and-error’ pharmaceutical model to a ‘science-driven’ approach. neoX Biotech is a highly promising company we have identified in this direction. Technologically, neoX leverages AI and computational biophysics to effectively address the limitations of relying solely on AI or computational methods, establishing high barriers to entry. Strategically, neoX focuses on emerging and rapidly growing areas such as neoantigen-TCR therapies, PROTACs, and antibody-based drugs, which hold significant potential. The company boasts a strong multidisciplinary team with expertise in computation, AI, pharmacy, and immunology. We look forward to neoX Biotech bringing transformative change to the new drug development industry.”

Jing Xutian, Vice President of Morningside Venture CapitalAffirmed, “In the rapidly emerging field of immunotherapy, we are increasingly recognizing that more precise therapeutic approaches will take center stage in the future. To achieve this critical leap, studying protein-protein interactions through computational methods and machine learning has become an indispensable step. The neoX team possesses scarce, globally leading expertise and algorithms in this interdisciplinary field. These capabilities not only have broad applicability but also allow for continuous iteration of the algorithmic engine as experimental data and experience accumulate. We believe that in the near future, this will evolve into the capacity to efficiently and sustainably drive the development of precision therapies.”

Yuanjing Capital was established in 2015 by Mr. Wu Yongming, co-founder of Alibaba Group. Its team comprises experts from core positions at leading internet companies and seasoned investors from top-tier Chinese venture capital firms, providing startups with practical experience and team support. Yuanjing Capital focuses on investments in new consumption, enterprise services, digital health, and frontier technologies, having invested in over 90 innovative enterprises. In the future, Yuanjing will continue to deepen its engagement in digital health, healthcare services, biotechnology, and medical devices.

Sequoia Capital has always been committed to helping entrepreneurs build enduring, great companies by bringing rich global resources and valuable historical experience to its portfolio companies. Over the past 48 years, Sequoia Capital has invested in numerous innovative enterprises and leaders shaping industry trends. As “entrepreneurs behind entrepreneurs,” Sequoia Capital China focuses on investment opportunities in four sectors: technology/media, healthcare, consumer goods/services, and industrial technology. Over the past 15 years, Sequoia Capital China has invested in nearly 600 companies with distinct technological features, innovative business models, and high growth potential.

Morningside Venture Capital is one of China’s earliest firms engaged in early-stage venture capital. Currently managing dual-currency funds in both US dollars and Renminbi, it oversees assets totaling several billion US dollars. Its limited partners include internationally renowned sovereign wealth funds, family offices, funds of funds, and university endowments. Over nearly two decades of collaboration, the Morningside team has been dedicated to identifying, supporting, and empowering solitary entrepreneurs, sharing their exceptional vision while providing insights, industry expertise, and comprehensive support spanning from moral encouragement to all aspects of business operations.