Junsai Bio Announces Completion of Tens of Millions RMB Pre-A Financing to Advance Multiple Novel TIL Cell Therapies for Solid Tumors

VCBeat (WeChat ID: vcbeat) has learned that Shanghai Juncell Therapeutics Co., Ltd. has successfully completed a Pre-A financing round amounting to tens of millions of RMB. The round was led by Yuanhe Yuandian, with Furong Investment participating as a co-investor, and Haoyue Capital serving as the exclusive financial advisor. Dr. Jin Huajun, founder of the company, stated that the funds raised will be used for the research and development of multiple novel TIL cell therapies.

Juncell Therapeutics, established in Shanghai in July 2019, is a globally leading innovative enterprise specializing in novel cell therapies for solid tumors. The company is dedicated to developing innovative Tumor Infiltrating Lymphocyte (TIL)-based therapies and First-in-class/Best-in-class cell therapy drugs for a wide range of recurrent and refractory cancers.

Dr. Jin Huajun, the founder, has dedicated over a decade to researching tumor immune mechanisms and cell therapies, accumulating extensive firsthand experience in R&D and clinical studies. He possesses deep insights into the pain points, improvement directions, and strategies for solid tumor cell therapy. Dr. Jin is proficient in the entire lifecycle of novel cell therapy development, including early-stage design, process and assay development, preclinical and clinical studies, and regulatory submissions for new drug applications. He has developed internationally leading clinical-grade CAR-T cell technologies featuring self-expressing antibodies for the treatment of solid tumors, as well as China’s first non-viral vector-based CAR-T cell therapy product.

In China, there are approximately 4 million new cancer cases and 2.338 million cancer-related deaths annually. Over the past decade, the incidence of malignant tumors has increased by approximately 3.9% per year, while the mortality rate has risen by 2.5% annually. Solid tumors account for 90% of these cases, representing a substantial unmet clinical need. Currently, two classes of drugs have achieved breakthrough progress in oncology: CAR-T cell therapy and PD-1/PD-L1 antibodies. While CAR-T cell therapy demonstrates significant efficacy against hematologic malignancies, its effectiveness against solid tumors is limited. Similarly, PD-1/PD-L1 antibody therapy for solid tumors yields an overall objective response rate of only about 20%. These findings underscore the urgent need for breakthrough therapies in the field of solid tumor treatment.

(Image source: Iovance official website)

TIL (Tumor-Infiltrating Lymphocyte) cell therapy refers to a treatment in which tumor-infiltrating lymphocytes are isolated from tumor tissues, expanded extensively ex vivo, and then infused back into the patient. The effector cells used in TIL therapy constitute a population that has undergone natural selection and enrichment, characterized by a high proportion of tumor-specific T cells and substantial diversity. Compared with CAR-T cell therapy and PD-1/PD-L1 antibodies, TIL therapy offers advantages such as multi-target recognition, strong tumor tropism and infiltration capacity, and fewer side effects.

(Image source: Iovance official website)

Currently, there are 87 clinical trials of TIL cell therapy worldwide, targeting various solid tumors such as metastatic melanoma, nasopharyngeal carcinoma, head and neck squamous cell carcinoma, cholangiocarcinoma, recurrent or refractory ovarian cancer, osteosarcoma, cervical cancer, ovarian cancer, non-small cell lung cancer, glioma, and pleural mesothelioma. Iovance’s TIL cell therapy LN-145 achieved an objective response rate (ORR) of 44% and a complete response rate (CR) of 11% in 27 patients with recurrent, metastatic, or persistent cervical cancer. The median duration of response (DOR) has not yet been reached. The therapy has been granted Breakthrough Therapy Designation by the FDA and is expected to be approved for market launch in 2020. With a portfolio of multiple TIL cell therapies for solid tumors, Iovance’s market capitalization has now exceeded $3 billion.

(Image source: Iovance official website)

Due to technical barriers such as the difficulty in sourcing materials and the complexity of manufacturing processes, only a handful of companies in China are developing TIL cell therapies. The founding team of Juncell Therapeutics has accumulated extensive successful experience in cellular immunotherapy, including TIL cell therapy, positioning the company with the potential to become a unicorn in solid tumor cell therapy.

Dr. Jin Huajun, Founder, Chairman, and General Manager of Juncell Therapeutics, stated: “Tumor-infiltrating lymphocytes (TILs) are a population of lymphocytes infiltrating tumor tissues, primarily composed of CD3-positive T cells. Unlike CAR-T/TCR-T cells derived from genetically engineered peripheral blood T cells, TILs naturally possess the ability to recognize multiple tumor antigens and efficiently home to tumor sites. Upon reactivation in vitro, they can become potent effector cells for the treatment of solid tumors. However, as a heterogeneous cell population derived from tumor tissues, significant exploration and validation are required to enrich the tumor-killing T-cell subsets, reverse their immunosuppressive state, equip them with the capacity to adapt to the immunosuppressive tumor microenvironment, and establish standardized manufacturing and quality control systems. We are honored to have gained the favor of two renowned biopharmaceutical investment funds, Yuanhe Origin and Furong Investment, and we extend our gratitude to Haoyue Partners for their full support in this financing round. This will help us accelerate the development of innovative TIL-based therapies.”

Mr. Zhao Qun, Partner at Yuanhe Origin, stated, “There remains a significant unmet clinical need in the field of solid tumor treatment. TIL therapy holds promise as a novel cell therapy for overcoming advanced-stage solid tumors. The innovation capabilities and preliminary achievements of the Juncell Therapeutics team are impressive, demonstrating substantial growth potential. Yuanhe Origin is delighted to have the opportunity to collaborate with the Juncell team, working together to accelerate the market launch of the company’s TIL therapy-related products and benefit patients.”

Mr. Sun Pengjun, Chairman of Shanghai Furong Investment, stated, “Furong Investment is honored to participate in this financing round for Juncell Therapeutics. Our decision is primarily driven by our belief that cell therapy will ultimately achieve breakthroughs in the treatment of solid tumors, as preliminary evidence from Phase II clinical data of international peers has already emerged. The team led by Dr. Jun Jin is rigorous, pragmatic, and highly experienced, which aligns perfectly with our investment preferences. Furthermore, the translational development of biotechnology relies heavily on robust clinical support, and Fudan University offers abundant clinical resources. We look forward to fostering greater synergy and collaboration.”

Mr. Li Yishi, Partner at Hywin Capital, stated: “CAR-T cell therapy has demonstrated remarkable efficacy in the field of hematologic malignancies, but its therapeutic effect on solid tumors remains limited. Leveraging over a decade of R&D accumulation and clinical experience in cell therapy, the founding team of Juncell Therapeutics has developed unique design strategies and development concepts, holding the potential to overcome various recurrent and refractory solid tumors. As a high-quality and scarce company in China’s cellular immunotherapy sector, Juncell Therapeutics is viewed by Hywin Capital as having significant potential in the field of solid tumor treatment.”

Oriza Origin, a member enterprise of Suzhou Oriza Holdings Co., Ltd., is a market-oriented, specialized early-stage equity investment platform. It focuses primarily on investment opportunities in startups and growth-stage enterprises within the Healthcare and TMT sectors. The platform manages nine funds with a total scale of approximately RMB 3 billion, comprising both venture capital (VC) funds and angel funds targeted at specific regions. Characterized by its focus on early-stage investments, preference for technology-driven ventures, and commitment to honoring commitments, Oriza Origin has earned a strong reputation among technology-focused early-stage startups. As of the end of December 2019, it had invested in and managed over 200 high-quality portfolio companies, including Ascentage Pharma, CStone Pharmaceuticals, Beiren Robotics, TZTEK, Biocytogen, Cambricon, and CloudWalk Technology.

Furong Investment is a specialized investment fund established by Shanghai Furong Investment Co., Ltd., with a focus on the industrialization of scientific and technological achievements. Shanghai Furong Investment Co., Ltd. is a technology finance and innovation & entrepreneurship platform initiated by the Fudan University Ningbo Research Institute. It fully leverages Fudan University’s robust advantages in talent, scientific research, academia, and clinical resources to promote the industrialization of related scientific and technological achievements and support high-level talent in innovation and entrepreneurship, thereby serving the national strategy of innovation-driven development and Shanghai’s goal of building a globally influential science and technology innovation center. The Furong Qingyun Fund, under Furong Investment, has a total size of RMB 5 billion, with an initial closing of RMB 500 million. It adopts an investment strategy of “Fund of Funds (FOF) + Direct Investment,” focusing on three major industrial clusters: life sciences, green technology, and intelligent manufacturing.

Haoyue Capital, founded in 2013, is dedicated to serving as a bridge connecting China’s healthcare industry with capital. Its research and transaction coverage spans multiple sub-sectors, including biopharmaceuticals, innovative medical devices, in vitro diagnostics (IVD) and precision medicine, healthcare services, and smart healthcare. The Haoyue Capital team comprises seasoned investment bankers with extensive experience in China’s healthcare sector. By closely monitoring market dynamics and investment trends in healthcare over the long term, the team releases a weekly healthcare industry report and curates major healthcare events, interpreting new policies and emerging frontiers from a capital perspective.