Tuoxiang Pharmaceuticals Completes Tens of Millions RMB Pre-A Financing to Advance Liquid-Liquid Phase Separation Drug Discovery Platforms

Recently, Zhuanxiang Pharma (Shanghai) Co., Ltd. (“Zhuanxiang Pharma” or the “Company”) announced the completion of its Pre-A financing round, raising tens of millions of RMB. Zhuanxiang Pharma is an innovative drug development company leveraging its team’s extensive experience in drug development. The company harnesses the mechanism of protein phase separation and has established a high-throughput drug screening platform based on phase separation, thereby accelerating innovative drug R&D and securing a first-mover advantage in its therapeutic areas.This round of financing was led by the Pudong Technology Investment Angel Fund of Funds, under the Pudong Venture Capital Group. Existing shareholder Proxima Capital continued to increase its investment, with Riemann-Hypothesis serving as the exclusive financial advisor.This round of funding will be used to advance the R&D of the pipeline and accelerate the development of the “liquid-liquid phase separation” technology platform.

Tuanxiang Pharma, established in 2022, is an innovative drug R&D enterprise that integrates traditional new drug development with the utilization of globally leading, unique phase separation technology. The company possesses two core technology platforms: the CoPIC technology platform and the DropScan technology platform. Among them, the CoPIC technology platform isThe World's OnlyLeveraging phase-separated condensates as tools, we have pioneered a modular drug discovery and high-throughput screening technology platform that enables the visual screening of regulators of biomacromolecular interactions within cells. The DropScan technology platform is capable of eliminating and reconstituting phase-separated condensates, as well as constructing phase-separated states of condensates with diverse properties. Through visualized high-throughput screening, this technology allows for the rapid identification of candidate compounds that significantly modulate abnormal aggregation or dissolution of phase-separated condensates, demonstrating a distinct advantage in drug development for diseases associated with aberrant phase separation. Advantages of the aforementioned two platformsGained recognition from multinational pharmaceutical companies in the past two years and successfully completed substantive commercial collaborations. Meanwhile, the company has also garnered strong recognition from the investment community, successfully completing this round of financing with high efficiency. The proceeds will be primarily used to advance IND filings for its autoimmune and oncology pipelines and to continue translating the outcomes of its technology platforms into practical applications.

The company’s core team comprises top-tier members from both domestic and international industry and scientific communities. Among them, Dr. Li Pilong, the scientific co-founder, has over 15 years of research experience in the field of biomolecular phase separation and is one of the earliest scientists worldwide to conduct in-depth exploration of liquid-liquid phase separation mechanisms at the molecular level. He is alsoWorld's FirstScientists achieving liquid-liquid phase separation reconstruction through biochemical methods; Co-founder Dr. Kevin Liu has over 30 years of experience in drug R&D and management at multinational pharmaceutical companies, as well as entrepreneurial experience in biotechnology firms. The core team members have an average of more than 15 years of experience in innovative drug development, providing strong support for Tuoxiang Pharma’s successful R&D and operations in China.

The Pudong Science and Technology Investment Angel Fund of Funds focuses on source innovation. This investment in Zhuanxiang Pharma represents not only a proactive layout and strategic investment in the frontier scientific field of “liquid-liquid phase separation,” but also an acceleration of the transformation of university research achievements in Pudong, injecting new vitality and innovative momentum into the technological innovation and high-quality industrial development of Pudong New Area.

Dr. Kevin Liu, Co-founder of Tuanxiang Pharmastated: “We extend our sincere gratitude for the steadfast support of the investors in this funding round and the continued collaborative efforts of our company team. The successful completion of this financing round fully demonstrates the investors’ recognition of Tuantai Pharma’s R&D pipeline, the development potential of its CoPIC and DropScan technology platforms, and the company’s operational capabilities. Moving forward, the company will continue to leverage these unique innovative drug screening platforms to address development challenges associated with difficult-to-drug targets, including those in autoimmune diseases, central nervous system disorders, and oncology. We are committed to becoming an enterprise that applies the technology of separating innovative drug discovery from development in new drug R&D.”

Li Zhe, Managing Partner at Proxima Capitalstated: “As long-standing shareholders of Zhuanxiang Pharmaceutical, we have witnessed their past growth and development journey. We have seen the arduous efforts made by the team along the way and recognize how hard-earned their current achievements are. Against the backdrop of the current capital winter, we remain firmly optimistic about the future application prospects of the phase separation technology platform, which aims to help address undruggable targets and refractory diseases. We look forward to the company’s greater development in the future.”

Dr. Li Chaoxing, Chairman of Riemann-Hypothesis, as the exclusive financial advisor for this round of financingHe stated, “Based on a profound understanding of the molecular mechanisms underlying phase separation, Tuanshang Pharma has independently developed a proprietary high-throughput visual drug screening platform that holds significant application potential for drug development targeting difficult-to-drug targets. Furthermore, its current pipeline demonstrates substantial advantages over competing products in the same category. These strengths lay a solid foundation for the company’s comprehensive external collaborations. We look forward to Tuanshang Pharma becoming a global leader in innovative drug R&D driven by phase separation technology.”

Shanghai Pudong Innovation Investment Development (Group) Co., Ltd. (hereinafter referred to as “Pudong VC”) was established with the approval of the People’s Government of Pudong New Area. Taking “fostering technological innovation and promoting the development of emerging industries” as its mission, the company focuses on cultivating local super-large enterprises through a strategy of “investing in large and strong players”; strengthens and solidifies supply chains in six core hard-tech industries by “investing in new and high-quality assets”; and supports the commercialization of scientific achievements and original innovation sources by “investing early and small.” Leveraging its “three major funds”—the Leading Zone Fund, the Science and Technology Innovation Fund of Funds, and the Angel Fund of Funds—as key instruments, Pudong VC achieves synergistic coordination across six business segments: angel investment, industrial investment, strategic investment, fund investment, post-investment management, and industrial research. It aims to build an investment system covering the entire lifecycle of sci-tech enterprises, fulfill the leading and complementary roles of state-owned venture capital, and boost the regional landscape characterized by “dominant large enterprises, widespread small businesses, and a continuous stream of startups,” thereby promoting a high-level circulation of “technology–industry–finance.”

Proxima Capital manages multiple RMB and USD-denominated funds, focusing on identifying, investing in, and fostering exceptional medical technology innovation enterprises with significant growth potential. The Proxima Capital team boasts diverse and internationalized expertise, professional backgrounds, and resource networks, along with extensive clinical resources, industrialization experience, and entrepreneurial track records. The firm has invested in over 70 companies, helped establish more than 30 of them, and supported the development of over 50 global first-in-class products.

Riemann-Hypothesis, founded by Dr. Li Chaoxing upon his return from the United States in 2018, is an integrated industrial innovation platform dedicated to the “institutionalized” development of early-stage life sciences. Upholding its original mission to collaborate with scientist-entrepreneurs who possess global vision, profound insights, and ambitious aspirations, Riemann-Hypothesis is committed to providing early-stage investment and operational incubation for original and pioneering biomedical projects worldwide. It further establishes a “fully managed” and “institutionalized” enabling incubation ecosystem, thereby breaking through the limitations of traditional technology transfer, venture capital investment, and boutique investment banking.