NeuShen Therapeutics Secures Tens of Millions in Series A Financing to Advance CNS Pipeline

NeuShen Therapeutics (hereinafter referred to as the “Company”) is a clinical-stage international biotechnology company focused on developing innovative therapies for neurological and psychiatric disorders.The company recently announced the completion of its Series A financing round, raising tens of millions of US dollars. The round was led by the Shanghai Biomedical Fund under Shanghai Industrial Capital, with continued support from existing shareholder Longpan Investment, and participation from multiple institutions including Xienuo Investment. Kaicheng Capital served as the exclusive financial advisor for this round.

This round of financing will be used to advance the clinical development of the company’s core R&D projects, including NS-041 (a selective KCNQ2/3 channel agonist) for multiple indications such as epilepsy, mood disorders, and pain, which has completed Phase I clinical trials, and NS-136 (a positive allosteric modulator of the M4 muscarinic acetylcholine receptor) for agitation associated with schizophrenia and Alzheimer’s disease and other dementias. It will also support IND-enabling development for multiple programs targeting treatment-resistant depression, Alzheimer’s disease, and Parkinson’s disease. The successful completion of this financing round demonstrates strong investor confidence in the company and provides significant momentum for advancing its subsequent pipeline layout.

The company’s innovative drug pipeline has achieved a breakthrough. Its core product, NS-041, recently completed Phase I clinical trials: the drug maintained an excellent safety and tolerability profile and demonstrated a superior therapeutic index compared to similar investigational products, providing robust data support for its subsequent clinical development. Currently, NS-041 has advanced smoothly into a Phase II Proof-of-Concept study for focal epilepsy, while simultaneously initiating indication expansion to address major unmet clinical needs in affective disorders and neuropathic pain.

The company has incorporated innovative strategies and design into another key product, NS-136. First-in-human (FIH) trials were conducted sequentially in Australia and China, yielding valuable multi-ethnic trial data. Additionally, multiple ascending dose studies were carried out in both healthy adult and elderly subjects, laying the foundation for the early initiation of research related to geriatric diseases. Notably, the team systematically optimized the compound: multi-site modifications were introduced to mitigate the risk of generating dose-limiting metabolites, and improved physicochemical properties significantly reduced inter-individual pharmacokinetic (PK) variability. These advancements effectively address the limitations of competing products. Combined with a differentiated clinical acceleration development strategy, NS-136 is poised to become a best-in-class therapy for schizophrenia and psychiatric disorders in the elderly.

Dr. Huaqiong Shen, Founder and CEO of the Company, stated“We are deeply grateful for the recognition and support from both new and existing investors. Over the past three years, the team at NeuShen Therapeutics has leveraged its extensive expertise and unwavering efforts to advance multiple projects with global competitiveness to the Preclinical Candidate (PCC) or clinical stages, with two of these projects poised to enter pivotal clinical trials. The funding from this round will strongly support our endeavor to build a more robust and globally leading CNS pipeline, accelerating the development of our core assets. I am confident that as our projects continue to progress, our strengths will become even more pronounced, backed by our rich capabilities in international CNS clinical R&D. We look forward to fulfilling our mission of benefiting patients at the earliest opportunity.”

Guo Qiushan, Partner at Shanghai Bio-Medicine Fund, stated“Pharmacotherapy in the central nervous system (CNS) field faces multiple limitations, including efficacy, side effects, and patient compliance. The R&D process is plagued by extremely low translational success rates from preclinical studies and significant challenges in clinical trial design and management, making the exploration of novel mechanistic targets highly challenging and resulting in few major breakthroughs over the past decade. As mental and neurological disorders have become a global health priority with immense therapeutic market potential, the Shanghai Biomedical Fund has consistently monitored and supported breakthrough innovative therapies in this area. Leveraging robust clinical and biological evidence, NeuShen Therapeutics has developed a portfolio of differentiated potential products in areas such as schizophrenia and epilepsy. Within less than three years since its establishment, the company has rapidly advanced multiple pipeline candidates into clinical stages, demonstrating exceptional execution capabilities and an international perspective. We believe that Dr. Shen Huaqiong and her team will leverage their extensive expertise in drug design and clinical development to provide competitive therapeutic options for patients worldwide.”

Xeno InvestmentMedical DirectorIndicate“NeuShen Therapeutics is a globally leading innovative drug developer focused on neurological and psychiatric disorders. Addressing the needs of a broad patient population, the company’s core pipeline demonstrates significant potential for clinical advantage, featuring blockbuster molecules that fill gaps in the current standard-of-care landscape and enhance efficacy at the same targets, thereby offering substantial commercial value. Xenon Investment continues to focus on therapeutic areas with room for iteration beyond standard therapies and will remain committed to supporting Mr. Xie’s team in the development and advancement of its pipeline.”

Yu Zhihua, Chairman of Longpan Investment, stated“The development of innovative drugs for the central nervous system is a field where challenges and opportunities coexist. The NeuShen Therapeutics team advanced two novel molecules from laboratory R&D to Phase II clinical trials within three years, demonstrating commendable industry insight, forward-looking project selection, and efficient execution. LongPan Capital is pleased to continue supporting NeuShen Therapeutics’ Series A financing round and believes that the company will stand out in the race for innovative drug development.”

Shi Cunyi, Partner at Kaicheng Capital, stated“We extend our sincere gratitude to the team at NeuShen Therapeutics for their trust in Kaicheng Capital, and to all new and existing shareholders for their strong support. It is an honor to have facilitated the company’s completion of this financing round. Dr. Shen Huaqiong, the founder, brings over 20 years of experience as a CNS clinician and in R&D within the central nervous system field at multinational pharmaceutical companies. Under her leadership, the company has rapidly advanced multiple novel drug pipelines that combine high market demand with innovative value. We believe that, with the continued support of our shareholders, the company will accelerate its development, expand globally, and deliver clinical benefits to patients worldwide.”

NeuShen Therapeutics is a clinical-stage, global biotechnology company that employs a small-molecule discovery platform strategy to focus on the research and development of innovative therapies for neurological and psychiatric disorders. The company operates R&D centers in Shanghai, China, and Boston, USA, boasting a world-class new drug development team specializing in neurological and psychiatric diseases. Its Board of Directors and Scientific Advisory Committee include seasoned leaders from both academia and industry. NeuShen has built a globally leading and robust CNS pipeline with best-in-class potential, with multiple core programs currently in clinical development.

Shanghai Industrial Capital is the active fund management platform and innovative investment expansion platform under Shanghai Industrial (Group) Co., Ltd. With a mission to serve the Group’s core responsibilities and main business in “Green Health,” it adheres to the operational philosophy of “market-oriented, internationalized, and professional” practices, building a fund management brand characterized by “Shanghai-Hong Kong linkage, Yangtze River Delta synergy, and global layout.” Currently, the company has established a fund matrix covering two core sectors: biopharmaceuticals and green technology.

Adhering to the synergistic development strategy of “Technology + Finance + Industry,” Shanghai Industrial Capital continues to deepen its presence in niche sectors such as innovative drugs, high-end medical devices, advanced equipment, environmental protection and energy, intelligent technology, and future industries. By empowering these sectors with capital to accelerate the industrialization of technologies, it cultivates industry clusters with international competitiveness, thereby supporting Shanghai Industrial in building a world-class investment holding group focused on green health industries.

Guangzhou Xieno Investment Group Co., Ltd. (hereinafter referred to as “Xieno Investment”) was established in August 2013, with business operations spanning securities investment, equity investment, overseas investment, and other fields, managing assets exceeding RMB 10 billion. The Group serves as a Vice President Unit of the Guangdong Artificial Intelligence Industry Association. Its private securities fund management subsidiary, Xieno Chenyang, is a Vice President Unit of the Guangdong Asset Management Association, while its equity fund management subsidiary, Xieno Chentu, is a Vice President Unit of the Guangzhou Venture Capital & Private Equity Association.

LongPan Investment, headquartered in Beijing, is a leading biomedical venture capital firm in China. Currently, LongPan Investment manages five RMB-denominated funds and one USD-denominated fund, with total assets under management exceeding RMB 10 billion. It is the only biomedical investment institution to date that has received capital commitments from both of China’s top two RMB limited partners: the National Council for Social Security Fund and the National Small and Medium Enterprises Development Fund. LongPan Investment focuses on investments in innovative drugs and innovative medical devices, primarily targeting start-up and early-to-mid-stage companies. To date, it has invested in over 120 companies, including more than 100 innovative drug enterprises and over 20 innovative medical device companies. Its portfolio features numerous star projects such as Beta Pharma (SZ.300558), RemeGen (SH.688331), Yihong Pharmaceuticals (SH.688176), Kaiyin Technology (SH.688687), ImmuneOnco (HK.01541), Eyebright Medical (SH.688050), Contineum Therapeutics (GYRE), Huahao Zhongtian, BinHui Biotech, and Wuhe Boao. Many partners within LongPan Investment’s management team possess over 20 years of R&D and managerial experience in the domestic and international biomedical industries, enabling them to provide comprehensive value-added services to portfolio companies.

WinX Capital is a leading investment bank in China’s healthcare industry, headquartered in Beijing and Shanghai, with offices in Shenzhen and Hangzhou. It has received numerous accolades, including Qimingpian’s “No. 1 Financial Advisor in the Healthcare Sector for 2024,” First New Voice’s “No. 1 Financial Advisory Firm in the Healthcare Sector for 2022–2024,” and VCBeat’s “Annual Healthcare Financial Advisor” as part of its “Top 100 Future Healthcare Companies (2022–2024).”