Daosheng Bio Files IPO Prospectus: Pioneering Microbial Synthesis of Natural Indigo with 40g/L Yield and Industrial-Scale Production Line Under Construction

Synthetic biology is hailed as the third biotechnology revolution, following the “discovery of the DNA double helix structure” and the “Human Genome Project.” As a groundbreaking “creation” technology, synthetic biology is driving industrial transformation in next-generation biomanufacturing and the future bioeconomy with its disruptive innovative power.

After decades of development, synthetic biology has become deeply integrated with various global industries, with its applications expanding to bio-based chemicals, bioenergy, bio-dyes, disease diagnostics, drug and vaccine development, crop breeding, and more. Today, synthetic biology is regarded as the “key to understanding life” and a “disruptive technology that will change the future.”

Daosheng Biotechnology (Shenzhen) Co., Ltd. (hereinafter referred to as “Daosheng Synbiology”) is a synthetic biology company that produces natural pigments, dyes, and natural pharmaceuticals through microbial fermentation.The company leverages synthetic biology technologies to construct artificial microbial cell factories for the production of natural pigments and natural pharmaceuticals, while establishing scalable manufacturing processes and production lines. Its synthetic product portfolio includes indigo, melanin, red pigments, prodigiosin, indirubin, and yellow pigments.Currently, the biosynthetic indigo pigment project has completed 5L small-scale trials and 50L to 500L pilot-scale trials. The company is establishing an industrial production line to advance large-scale mass production.

Recently, DAOSHENG SYNBIOLOGY has achieved another important milestone in its corporate development.In September 2024, DAOSHENG SYNBIOLOGY announced the completion of its angel round of financing, with investment from the Xingbo Shenghui Fund established by the Shenzhen Institute of Synthetic Biology Innovation.The Xingbo Shenghui Fund is the primary supporting fund for the Shenzhen Institute of Advanced Technology, Chinese Academy of Sciences, and the Shenzhen Institutes of Synthetic Biology Innovation. It focuses on startups that apply cutting-edge technologies to bioengineering and manufacturing.

The funds raised in this financing round will be used to advance the construction of an industrial production line for the indigo project. The production line is expected to be completed and commence operations in the first half of 2025, at which point scaled production and industrial implementation of indigo products will be achieved.

Biomanufacturing is considered to have the potential to lead the “Fourth Industrial Revolution,” with its core being the production of target products through synthetic biology technologies. Compared with traditional production models, biomanufacturing features cleanliness, high efficiency, and renewability. An analysis by the Organisation for Economic Co-operation and Development (OECD) of six developed countries shows that the application of biomanufacturing technologies can reduce industrial energy consumption by 15%–80%, raw material consumption by 35%–75%, air pollution by 50%–90%, water pollution by 33%–80%, and production costs by 9%–90%. It is predicted that by 2030, the scale of industries related to biomanufacturing technologies will account for 35% of global industrial output value.

In May 2022, the National Development and Reform Commission issued the “14th Five-Year Plan for Bioeconomy Development,” which explicitly identifies biomanufacturing as a strategic emerging industry direction within the bioeconomy. The plan proposes “leveraging biomanufacturing technologies to achieve biotechnological substitution of chemical raw materials and processes, developing high-performance bio-based environmentally friendly materials and biological preparations, and promoting the deep integration of biotechnology with the manufacturing of key industrial products in sectors such as chemicals, pharmaceuticals, materials, and light industry, thereby transitioning towards a green, low-carbon, non-toxic or low-toxicity, and sustainable development model.” Currently, biomanufacturing has become one of the important means to enhance new quality productive forces.

As the core driving force and key enabling technology of the biomanufacturing industry, synthetic biology has brought revolutionary impacts to various aspects, including production strain engineering, metabolic pathway optimization, and customized product manufacturing.

In the production of natural pigments, dyes, and natural medicines, chemical synthesis and plant extraction are currently the common manufacturing methods. Among these, chemical synthesis remains the mainstream approach, offering certain advantages in large-scale production; however, its drawbacks, such as environmental pollution and safety concerns, cannot be overlooked. Meanwhile, with improvements in living standards, heightened environmental awareness, and shifting consumer mindsets, there is an increasing demand from consumers for product safety, environmental friendliness, and sustainability.

In this context, DAOSHENG SYNBIOLOGY is committed to driving biomanufacturing innovation in fields such as natural pigments, dyes, and natural pharmaceuticals through synthetic biology technologies, producing synthetic products that benefit human health and environmental sustainability.

Currently,DAOSHENG SYNBIOLOGY has independently developed technologies for the microbial synthesis of natural pigments, natural pharmaceuticals, and dyes. The underlying principle involves reconstructing plant-derived metabolic pathways within microbial cells using synthetic biology techniques, thereby creating a novel biological system that enables heterologous production of target products with high yields.

Based on its core technologies, DAOSHENG SYNBIOLOGY primarily achieves product manufacturing through four steps:1. Construct microbial strains using technologies such as gene editing, artificial intelligence, genetic engineering, and enzyme engineering, followed by fermentation-based screening; 2. Optimize and culture the engineered strains to identify optimal cultivation conditions through single-factor or multi-factor experiments; 3. Conduct fermentation processes and scale-up production while monitoring real-time changes in various process parameters; 4. Purify the product using separation techniques to ultimately obtain a high-purity target product.

Yuan Xiaoli, founder of DAOSHENG SYNBIOLOGY, stated: “The core technology of DAOSHENG SYNBIOLOGY integrates the advantages of chemical synthesis and plant extraction while eliminating their drawbacks, enabling the safe and efficient large-scale synthesis of various natural pigments, dyes, and natural pharmaceuticals.”

Notably, DAOSHENG SYNBIOLOGY has filed nine related patents, with one invention patent already granted, thereby establishing a robust patent moat.

Leveraging its proprietary microbial synthesis technology, DAOSHENG SYNBIOLOGY focuses on the biosynthesis of natural pigments, dyes, and pharmaceuticals that promote human health. By establishing an industrial chain for natural pigments such as indigo, melanin, yellow pigments, and red pigments, the company serves domestic and international markets in the fields of dyes, food, beverages, cosmetics, and pharmaceuticals.Among them, the indigo project is progressing the fastest. It has completed pilot-scale trials, with production output meeting the standards for large-scale manufacturing, and is poised to commence industrialized production.

Specifically, indigo is a water-soluble, non-azo colorant that appears deep blue in its solid state. It is slightly soluble in water and other organic solvents such as ethanol and glycerin, but insoluble in oils and fats. As a vat dye, it requires specific chemical conditions to form stable bonds with fibers, thereby producing long-lasting coloration.

Currently, the predominant method for indigo production in China is the aniline-chloroacetic acid process. However, this method generates substantial by-products, including solid waste, exhaust gases, and wastewater, which entail high treatment costs. Plant extraction represents another approach to indigo production. Nevertheless, the indigo content in plants is low, leading to high extraction costs. The resulting extracts exhibit low indigo purity and contain numerous impurities that are difficult to remove completely, thereby increasing purification costs. Furthermore, the presence of residual impurities raises subsequent processing costs during application.

In response, DAOSHENG SYNBIOLOGY has developed a microbial synthesis technology for indigo pigment based on its core technologies, constructed specialized indigo-producing strains, and designed specific cultivation protocols and process methods tailored to the characteristics of these indigo-producing strains.Currently, DAOSHENG SYNBIOLOGY’s indigo project has completed both laboratory-scale and pilot-scale trials. According to reports, third-party testing and validation results indicate that the laboratory-scale yield of its indigo project has reached 40 g/L, mass production has achieved 20 g/L, and a yield of 30 g/L is expected to be attained within the next six months. DAOSHENG SYNBIOLOGY is now well-positioned to further expand scaled-up production, with the projected yield of the indigo project expected to exceed 40 g/L in the future.

It is reported that chemically synthesized indigo sells for approximately RMB 70,000–100,000 per ton, whereas plant-extracted indigo commands a price of around RMB 1.6 million per ton. By leveraging synthetic biology technologies, DAOSHENG SYNBIOLOGY has engineered the metabolic pathway for plant-derived indigo into microbial cells, thereby establishing a novel biological system that enables heterologous production of the target product with high yield. The indigo produced through this method is identical to that obtained from plant extraction, yet it offers significant advantages in terms of shorter synthesis cycles, higher efficiency, and lower costs.

According to the company, DAOSHENG SYNBIOLOGY’s 10-ton fermenters operate at an actual fermentation volume of 80%, and their production of indigo over a period of 2–3 days is equivalent to the indigo content found in 72,000 kg of *Baphicacanthus cusia* plants grown on 24 mu of land, representing a substantial increase in production efficiency.It is estimated that the company’s cost for large-scale production of indigo can be reduced to less than 50% of that for plant-extracted indigo, significantly lower than the domestic price of plant-based indigo, with a gross profit margin maintainable at over 70%.

In addition to the indigo project, DAOSHENG SYNBIOLOGY is simultaneously developing products such as melanin, prodigiosin, indirubin, and yellow pigment. Among these, prodigiosin is a natural pigment with significant biological activity; it is an effective inhibitor of the Wnt/β-catenin pathway and possesses antibacterial, antifungal, antiprotozoal, antimalarial, immunosuppressive, and anticancer properties. Indirubin is an isomer of indigo, featuring a unique bis-indole structure with antitumor, anti-inflammatory, and antibacterial effects, and can serve as a novel drug for the treatment of chronic myeloid leukemia and other hematological disorders.

Currently,DAOSHENG SYNBIOLOGY has completed the pilot-scale production of prodigiosin and indirubin, with small-scale mass production expected to be achieved in 2025.

Following the completion of the latest round of financing,DAOSHENG SYNBIOLOGY is advancing the construction of its indigo production line, which is expected to be fully completed and officially commence operations in the first half of 2025. According to reports, the production line has a stable annual output capacity of 20 tons, efficiently meeting specific market demands.

Meanwhile, DAOSHENG SYNBIOLOGY has established a flexible business model.Currently, the company primarily targets the B2B market, providing independently developed indigo and other products to high-end printing and dyeing enterprises, denim dyeing manufacturers, and similar clients. In addition, the company collaborates with downstream pharmaceutical companies and research institutions to jointly explore the medicinal value of natural pigment products.As of now, DAOSHENG SYNBIOLOGY has established cooperative relationships with more than ten brand owners and fabric suppliers.

Building on this foundation, DAOSHENG SYNBIOLOGY will continue to drive innovation in core technologies and advance processes such as fermentation engineering. To this end, the company will collaborate with the Chinese Academy of Sciences to jointly establish a scientific research and application laboratory, aiming to accelerate technological iteration and process innovation, thereby enabling the development and production of a broader portfolio of industrialized products.

According to McKinsey’s forecasts, synthetic biology is expected to generate a direct annual economic impact of $2–4 trillion globally over the next 10–20 years. By 2025, the economic value of synthetic biology and biomanufacturing will reach $100 billion. Amid the current lack of new growth drivers in the global economy, the immense potential of synthetic biology and biomanufacturing will become a significant force driving economic growth and sustainable development.

In the face of the vast market for synthetic biology,DAOSHENG SYNBIOLOGY will continue to advance the commercialization of its products under development, while also establishing a large-scale manufacturing facility based on its existing production lines. At that time, the company’s core products are expected to achieve an annual production capacity of 300 to 500 metric tons.

Shenzhen Institute of Synthetic Biology is an unincorporated research institution spearheaded by the Institute of Synthetic Biology, Shenzhen Institutes of Advanced Technology, Chinese Academy of Sciences. Adhering to the founding philosophy of “Creating to Know, Creating to Apply,” the Institute advances fundamental theories for the quantitative understanding and rational design of living systems. It establishes key technical capabilities and engineering platforms, including rational design of synthetic biology and automated high-throughput synthesis and testing, to promote the industrial application of synthetic biological manufacturing. The Institute strives to become an internationally influential R&D hub and innovation center for the synthetic biology industry.

Established in 2020, the Xingbo Shenghui Fund serves as a key supporting fund for the Shenzhen Institute of Advanced Technology, Chinese Academy of Sciences, and the Shenzhen Institute of Synthetic Biology. As China’s first synthetic biology industry fund, it primarily targets startups applying cutting-edge technologies to bioengineering manufacturing, including companies driving technological breakthroughs in medical R&D methodologies, new materials, and drug development, while jointly exploring and implementing the localized adaptation of the Venture Lab model.