HuaWei HengYuan Completes Tens of Millions of RMB Series A1 Financing to Accelerate Cell Therapy and Assisted Reproductive Technology Pipelines

VCBeat has learned that Huawei Hengyuan (Beijing) Biomedical Technology Co., Ltd. (“Huawei Hengyuan”) recently completed a tens-of-millions-yuan Series A1 financing round, led by Yuanhe Capital and the Tsinghua Alumni Seed Fund. The funds raised will be used to advance regulatory approvals and certification for its assisted reproductive technology pipeline, construct production facilities, accelerate the Investigator-Initiated Trial (IIT) and Investigational New Drug (IND) applications for its rheumatoid arthritis cell injection, and further develop its diabetes product pipeline.

Huawei Hengyuan is a biotechnology enterprise possessing internationally pioneering, fully independent intellectual property rights in human immune-privileged Sertoli cell technology, with its core team originating from Tsinghua University. The company has been accredited as a National High-Tech Enterprise, a Beijing “Specialized, Refined, Differential, and Innovative” (SRDI) Enterprise, and has established a Postdoctoral Workstation, among other qualifications. Huawei Hengyuan focuses on the research and development of innovative cell therapies and medical devices for autoimmune diseases, regenerative medicine transplantation, and assisted reproduction. Its current product portfolio includes assisted reproduction diagnostic kits, in vitro spermatogenesis devices, cellular injections for rheumatoid arthritis, and immune-privileged artificial pancreases. These related products are currently at various stages of regulatory registration submission, preclinical animal trials, and filing for clinical trial applications.

Since its last round of financing, Huawei Hengyuan has made significant progress in both its pharmaceutical and medical device pipelines, continuously deepening its layout in the fields of autoimmune diseases, regenerative medicine, and assisted reproduction.

In terms of the drug pipeline, the development of two cell-based therapies for rheumatoid arthritis and diabetes is progressing steadily. The rheumatoid arthritis pipeline has achieved a key breakthrough in the preclinical research phase; the cell injection for rheumatoid arthritis has passed ethical approval for Investigator-Initiated Trials (IIT) and entered the clinical trial stage. In the field of diabetes treatment, the immune-privileged artificial pancreas project has entered the preclinical research and IND application preparation stage, with significant efficacy observed in animal models.

Currently, Huawei Hengyuan has successfully established clinical-grade iPSC and gene-editing platforms, as well as a universal transplant protection vector platform, marking significant breakthroughs in the development and manufacturing of cell therapy products.Leveraging these advanced technology platforms, the company can complete the production of Sertoli cells required for clinical use in as little as 10 days.Compared with traditional cell production processes, this speed significantly enhances efficiency while ensuring cell quality and quantity. This not only reduces production costs but also provides strong support for the clinical application and commercialization of cell therapy products.

Along with the financing process, Huawei Hengyuan also promptly adjusted and optimized its corporate development strategy.Liang Jianlin, CEO and Co-Founder of Huawei Hengyuan, stated:“We remain committed to a patient-centric, innovation-driven development philosophy. Therefore, strategically, we will focus more intensively on the research and development of our core pipeline, striving to achieve breakthroughs in the fields of immune privilege and assisted reproductive technology.”

In 2023, the National Healthcare Security Administration, in conjunction with the National Health Commission and 16 other departments, issued the Guiding Opinions on Further Improving and Implementing Proactive Fertility Support Measures. The document explicitly proposed guiding local authorities to gradually include appropriate labor analgesia and assisted reproductive technology (ART) services in the fund reimbursement scope, following due procedures and taking into account factors such as the affordability of medical insurance (including maternity insurance) funds and the standardization of related technologies. According to Frost & Sullivan’s projections, the market size for assisted reproductive services is expected to grow to RMB 85.43 billion by 2025. A report from Huajing Industry Research Institute indicates that China’s ART market size is projected to reach RMB 50 billion in 2025, with a compound annual growth rate (CAGR) remaining above 15%.

Therefore, assisted reproductive technology (ART) has become one of the key business areas prioritized by Huawei Hengyuan. To achieve independent operation and specialized development of its ART business, Huawei Hengyuan has integrated this segment into the newly established Suzhou Sairui Medical Technology Co., Ltd., with a particular focus on advancing the research and development of five Class II in vitro diagnostic (IVD) kits and the In Vitro Spermatogenesis (IVS) device.

Among these, the assisted reproductive IVD kits will provide comprehensive decision-making support for physicians and patients by precisely detecting the developmental status of patients' germ cells and assessing the normality of reproductive-supporting Sertoli cells, thereby effectively improving the success rate of testicular sperm extraction procedures and addressing urgent clinical needs. The IVD diagnostic kit for azoospermia, which is progressing most rapidly, is expected to launch in 2026.

In Vitro Spermatogenesis (IVS) DeviceThe In Vitro Spermatogenesis (IVS) device is a technology with broad application prospects, offering new solutions for male infertility caused by impaired spermatogenesis or azoospermia, thereby contributing to the resolution of fertility challenges. Its principle involves utilizing Sertoli cells to simulate the spermatogenesis process in vitro, enabling patients with conditions such as non-obstructive azoospermia to regain sufficient quantities of high-quality, mature sperm, thus significantly improving their chances of successful conception. Currently, the integrated solution for the Huawei Hengyuan IVS device is in the stages of prototype development, production, and regulatory registration preparation.

Leveraging its technological advantages and R&D capabilities, Huawei Hengyuan has established deep strategic partnerships with multiple leading hospitals in China. Specifically, it collaborates with Shanghai Changzheng Hospital and Dongfang Hospital on its rheumatoid arthritis pipeline, and works closely with Peking University People’s Hospital on its diabetes pipeline to jointly conduct preclinical research and product development.

In the field of its device pipeline, the Company has entered into strategic cooperation agreements with several renowned domestic hospitals, including Peking University Third Hospital, the First Affiliated Hospital of Soochow University, the Affiliated Women and Children’s Hospital of Xiamen University, the Affiliated Hospital of Guangxi Medical University, and Yulin No. 1 People’s Hospital, to jointly pursue business expansion and product research and development. These collaborations not only provide a solid foundation for the clinical validation and promotion of the Company’s products but also further enhance Huawei Hengyuan’s influence and reputation within the industry.

In terms of market strategy, Huawei Hengyuan continues to deepen its presence in the development of medical pharmaceuticals and devices by leveraging cell technology applications, while actively expanding into the consumer healthcare sector. According to Dr. Liang Jianlin, the company is considering the development of consumer-grade products related to Sertoli cell-derived exosomes to meet the growing demand for personalized health solutions. Looking ahead, Huawei Hengyuan plans to establish close collaborations with B-end medical and aesthetic institutions to jointly promote the research, development, and marketing of consumer-grade products. This initiative aims to provide consumers with more diversified, high-quality health products and services, thereby achieving a diversified expansion from the professional medical market to the consumer healthcare market.

Under the leadership of Dr. Liang Jianlin, Huawei Hengyuan has continuously achieved breakthrough progress by leveraging its profound technical expertise and sustained innovation capabilities in the field of cell therapy. From the steady advancement of its drug and medical device pipelines, to significant upgrades of its technology platforms, and meticulous planning for future R&D and market expansion, Huawei Hengyuan is advancing with determination toward its goal of becoming a leading enterprise in regenerative medicine, injecting new vitality and hope into the cause of human health.

Regarding this financing round, Liang Jianlin, CEO and Co-Founder of Huawei Hengyuan, stated:“This financing represents a significant milestone for us. It not only provides the necessary financial support for our R&D efforts, but also reflects investors’ strong recognition of our technological capabilities and market potential. With our rheumatoid arthritis pipeline advancing into human clinical trials and breakthroughs achieved in immune-privileged artificial pancreas technology for diabetes, we are steadily driving the in-depth development of our core drug pipeline.”

Meanwhile, the R&D and advancement of multiple medical device products are proceeding in an orderly manner. Among these, the IVD test kit for azoospermia has entered the registration and certification stage, and the development of the In Vitro Spermatogenesis (IVS) device is progressing as planned. Looking ahead, we will actively explore emerging market sectors such as assisted reproductive technology, expand our business boundaries, and achieve diversified corporate growth. We are confident in the future of Huawei Hengyuan (Beijing) Biomedical Technology Co., Ltd. and are committed to establishing it as a leading enterprise in the field of regenerative medicine, delivering innovative treatment options to patients worldwide.”

Beijing Weihaoyuanhe Capital stated:“Since the advent of modern medicine, the entire industry has been plagued by the contradiction between the growing demand for extracorporeal transplantation—driven by organ and cellular aging, pathological changes, and damage—and the severe shortage of donors. Regenerative medicine not only holds promise for addressing the donor shortage but also significantly enhances the utilization efficiency of donated organs, thereby delivering immeasurable social and commercial value. Huawei Hengyuan’s proprietary technology for inducing human immune-privileged cells enables their large-scale production and application in the fields of autoimmune diseases and cell transplantation, effectively resolving the challenge of immune rejection in cell transplantation and offering broad application prospects. The company’s technological prowess in the field of immune-privileged cells is widely recognized; its extensive application potential and high technical barriers constitute significant competitive advantages. We are confident in Huawei Hengyuan’s future and aim to support its emergence as a leading enterprise in regenerative medicine, bringing more innovative treatment options to patients worldwide.”

Shuimu Tsinghua Alumni Seed Fund stated:“Huawei Hengyuan’s breakthroughs and innovations in cell therapy technology are impressive. Its establishment of clinical-grade iPSC and gene-editing platforms, along with universal transplant protection vector platforms, has significantly enhanced the efficiency and quality of cell production, providing robust technical support for clinical applications in regenerative medicine. Particularly in the field of assisted reproduction, Huawei Hengyuan’s innovative products, such as its In Vitro Spermatogenesis (IVS) device, hold promise for addressing key challenges in current assisted reproductive technologies and meeting unmet clinical needs. We believe that as Huawei Hengyuan steadily advances its core pipelines in areas such as rheumatoid arthritis and diabetes, and expands its presence in emerging markets like assisted reproduction, the company will play an increasingly important role in the field of regenerative medicine.”

Yuanhe Capital builds on its fund-of-funds business, focusing on early- to mid-stage investments and specializing in new-economy sectors driven by technological innovation. Through a portfolio of funds, it connects core value creators across industries at different stages and under varying economic cycles. Using the commercialization of scientific and technological achievements as an entry point and seed funds as the starting base, it cultivates a high-quality pipeline of early-stage projects. It continuously monitors the growth of startups covered by its fund-of-funds, selecting the best among the best—those already validated by top-tier institutions and exhibiting high growth potential—and establishes venture capital (VC) funds to provide follow-on investment. By addressing the rigid demand for exits during the lifecycle of private equity products, it facilitates the deployment of secondary (S) funds within the Yuanhe ecosystem, thereby building a comprehensive private equity investment ecosystem that delivers sustained value to investors.

Shuimu Tsinghua Alumni Seed Fund was established in October 2014 as China’s first university alumni fund, committed to becoming the “first stop for Tsinghua alumni entrepreneurship.” The fund’s founding partners include Du Yan (Class of 1981, Environmental Engineering) and Li Zhu (Class of 1984, Computer Science), with all General Partners (GPs) being Tsinghua alumni. It focuses on investing in the commercialization of Tsinghua University’s scientific and technological achievements and alumni-led startups. Leveraging Tsinghua’s overall advantages and sustained dividends in new quality productive forces and hard technology sectors, Shuimu positions itself as an index fund for Tsinghua alumni entrepreneurship. It aims to comprehensively review and invest in eligible alumni projects, striving to support 100 alumni-founded companies in going public over the next 20 years.