Shenzhou BioPharma Secures Over RMB 100 Million in Series B1 Financing, Totalling RMB 3 Billion Raised Within Two Years

VCBeat has learned that XsellSmart Biopharmaceuticals (Suzhou) Co., Ltd. (Roche Accelerator Member; hereinafter referred to as “XsellSmart”) has announced the completion of its Series B1 market-oriented financing round, raising over RMB 100 million. The round was led by TAILONG VC/Taikun Capital, with joint investment from Qisheng Capital and Tianhui Capital. Existing investors, including FreeS Fund, Qiming Venture Partners, Lilly Asia Ventures, and HongShan, also made additional investments.This round of financing will be used to refine XsellSmart’s pipeline of clinical-grade iPS cell-derived therapies for neurological disorders, further conduct clinical studies, and advance multiple registrational clinical trials.

To date, XsellSmart has completed over RMB 300 million in market-oriented financing across its Series A, Series A+, and Series B1 rounds within the past two years:Jointly invested by multiple renowned market-oriented institutions, including FreeS Fund, Qiming Venture Partners, Lilly Asia Ventures, HongShan, TAILONG/TAIKUN Capital, Jinyuan Zhanhong, Sino-Singapore Capital, Yuanhe Holdings, Junshan Capital, Peking University Technology Transfer Fund, Jiacheng Capital, Alibaba Health, Huatai Zijin, Qisheng Capital, and Tianhui Capital.

XsellSmart, in collaboration with Shanghai East Hospital (Affiliated East Hospital of Tongji University), has completed in Shanghai, China the first national-level clinical research project on stem cell registration (iPS-derived cell therapy for neurological diseases) officially approved by the National Two Committees and Bureau in China.China’s First Clinical-Grade iPSC-Derived Dopaminergic Neural Progenitor Cell Transplantation for Parkinson’s Disease

XsellSmart has completed multiple cases of stereotactic bilateral putaminal injection of clinical-grade iPSC-derived midbrain dopaminergic neural precursor cells in collaboration with partner hospitals for the treatment of patients with moderate-to-severe Parkinson’s disease. The longest follow-up period has exceeded nine months, with no cell therapy-related adverse events reported to date. Furthermore, key efficacy indicators, including “on-off” time and scores on the MDS-UPDRS scale, have shown significant trends of improvement in multiple patients. These positive results from human clinical studies conducted by XsellSmart provide a solid foundation and critical validation for further clinical trials.

XsellSmart was founded by Dr. Li Xiang, who returned to China full-time to establish the company. Since its inception, XsellSmart has assembled a highly competitive, fully dedicated team covering the core aspects of R&D and industrialization of iPS cell-derived neural cell therapies. Core team members hail from prestigious institutions such as Peking University, Tsinghua University, Fudan University, Shanghai Jiao Tong University, Tongji University, the University of Wisconsin–Madison, and Johns Hopkins University, as well as renowned companies in the cell therapy industry. The team possesses cutting-edge stem cell therapy technologies and extensive translational experience at the forefront of both international academia and industry.

XsellSmart has long been dedicated to the independent R&D and industrialization of iPSC-derived cell therapies for neurological diseases. The company has independently designed and established a foundational technology platform covering key technical areas, including iPSC reprogramming and bank establishment, gene-edited iPSCs, differentiation of iPSCs into subtype-specific neural cells, and the construction and evaluation of preclinical disease animal models. XsellSmart collaborates with numerous renowned research institutions and leading hospitals on technological research and clinical development, and undertakes key national projects such as those under the National Biopharmaceutical Technology Innovation Center’s cell therapy initiative.

XsellSmart has established a portfolio of new technologies and platforms with independent intellectual property rights that are internationally leading, enabling sustainable, in-house R&D innovation centered on its core business:In 2023, XsellSmart’s globally first-in-class clinical-stage pipeline of iPSC-derived subtype neural precursor cells for the treatment of amyotrophic lateral sclerosis (ALS) was granted Orphan Drug Designation by the U.S. FDA, conferring seven years of market exclusivity upon approval. This marks the first independently developed iPSC-derived cell therapy from China to receive FDA certification and global orphan drug designation.

XsellSmart has independently built and operates a comprehensive hardware platform comprising an R&D center, a Grade B+A GMP facility, and a quality control center, spanning over 5,000 square meters. The company’s self-developed pipeline of multiple clinical-grade iPS cell-derived therapeutic products has completed core CMC development, established end-to-end clinical-grade manufacturing processes and quality control systems, and achieved formal registration batch and clinical batch production for various GMP-grade iPS-derived subtype-specific neural precursor cell therapy products.In 2024, XsellSmart’s GMP manufacturing facility and quality control center, along with their integrated software-hardware platforms and management operational systems, successfully passed the on-site inspections conducted by the National Health Commission and its expert supervisory team for ongoing clinical projects. This achievement provides critical validation for XsellSmart to further advance its clinical research and trials.

XsellSmart was recognized as a Gusu Major Innovation Team Enterprise and a Jiangsu Province “Mass Entrepreneurship and Innovation” Leading Talent Enterprise,Recognized as an enterprise under the Gusu Leading Talent Program for Innovation and Entrepreneurship, the Suzhou Industrial Park Science and Technology Leading Talent Enterprise Program, the Shanghai Oriental Talent Plan, and the Shanghai Chunshen Plan for Outstanding Introduced Talents; consecutively identified as a Potential Unicorn Enterprise in China and Jiangsu Province; ranked among the Top 50 in the National Finals of the China Innovation and Entrepreneurship Competition (ranking 1st in the Biomedical Sector in 2022); and awarded the Excellence Award (the highest honor) at the National Disruptive Technology Innovation Competition organized by the Ministry of Science and Technology for two consecutive years.

Dr. Li Xiang, Founder, CEO & CSO of XsellSmartIndicates:XsellSmart is a biopharmaceutical company dedicated to providing scalable, low-cost, clinical-grade iPSC-derived cell therapy solutions for major or critical neurological disorders that currently lack substantial clinical treatments, with moderate-to-severe Parkinson’s disease as a representative indication. “Delivering unparalleled stem cell innovative drugs to benefit millions of suffering patient families” is the founding mission and long-term vision of XsellSmart.

We extend our gratitude to the numerous market-oriented investment institutions that, amidst the industry’s winter and intense competitive landscape, have collectively chosen to back XsellSmart and firmly support its mission. This decision reflects their recognition of XsellSmart’s innovation, execution capabilities, core values, and sustained business growth, as well as their long-term confidence in XsellSmart and the field of innovative iPS cell-derived therapeutics in China. The XsellSmart team is fully committed, maintaining a low-profile yet pragmatic approach where actions speak louder than words, and we will continue to substantiate our progress with tangible facts and results. We anticipate that XsellSmart in 2025 will significantly outperform its 2024 achievements!

Shi Lan, Partner at TAILONG VC/Taikun Capital, the Lead Investor in XsellSmart’s Series B1 Financing RoundIndicates:We are delighted to invest in and participate in the rapid growth of XsellSmart! Dr. Li Xiang and his team at XsellSmart have been deeply rooted in the field of induced pluripotent stem (iPS) cells for many years, bringing significant translational expertise and industry background to the sector. The founder and his team are characterized by their dedication, sincerity, passion, and full commitment. Over the past few years, XsellSmart has achieved notable progress in new drug development, core platform construction, and team optimization and operations, demonstrating strong growth potential and exceptional execution capabilities.

Building on a solid foundation of preclinical and animal model studies, the clinical trials and results already achieved by XsellSmart have further validated the significant potential of its novel therapeutics and platform. We are confident in XsellSmart’s competitive edge and will continue to support its future development. We also look forward to Dr. Li Xiang leading XsellSmart to bring tangible benefits to patients worldwide suffering from Parkinson’s disease, amyotrophic lateral sclerosis (ALS), and other conditions at an early date!

Ma Pingping, General Manager of Qisheng Capital, a Co-Investor in XsellSmart’s Series B1 Financing RoundIndicates:Qisheng Capital is firmly committed to investing in the biopharmaceutical sector, with a long-term strategic focus on identifying outstanding breakthrough therapies. Cell and Gene Therapy (CGT) represents a key frontier area of our attention, where stem cell therapy, in particular, has brought new hope for conquering many intractable diseases. The XsellSmart team, led by Dr. Li Xiang, specializes in the field of stem cell therapy. The team boasts a robust professional background and comprehensive capabilities, complemented by exceptional cohesion and a strong sense of mission.

XsellSmart is leading the evolution of iPS cell technology from customized autologous products to allogeneic, off-the-shelf universal products, making scalable and cost-effective stem cell therapies for neurodegenerative diseases a reality. Amidst the broader downturn in the pharmaceutical industry, XsellSmart has remained steadfast, achieving milestone progress in technology development, product manufacturing, and clinical validation. We are honored to join hands with XsellSmart as it advances toward its next milestone, and we look forward to seeing it grow into a global biopharmaceutical enterprise that delivers health and well-being to patients worldwide.

Deng Jianliang, Partner at Tianhui Capital, Co-Investor in XsellSmart’s Series B1 Financing RoundIndicates:Leveraging its profound technical expertise in the field of induced pluripotent stem cells (iPSCs) and its rigorous, diligent, and efficient execution capabilities, the XsellSmart team has successfully established an iPSC R&D and CMC platform, constructed a GMP pilot-scale manufacturing workshop and quality control center within a relatively short period. The company has smoothly advanced its products to national-level filed clinical studies and patient enrollment, while also making significant progress in regulatory clinical trial applications both domestically and internationally, thereby further validating the capabilities of its R&D platform.

In recent years, the field of stem cell research has entered a critical phase transitioning from laboratory-scale investigation to clinical validation. Meanwhile, positive signals regarding safety and efficacy have emerged in the treatment of degenerative and end-stage diseases. We look forward to iPSC-based therapeutics fulfilling the scientific promise of regenerative medicine through continuous exploration, thereby transforming the therapeutic landscape for degenerative and end-stage conditions. We are confident and eager to see further clinical data from XsellSmart’s pipeline, leading to the development of more high-quality products and expanded business collaborations. Through sustained product and technological innovation, we aim to create value for human health and well-being.

TAILONG VC, established in 2021, is a professional equity investment management firm specializing in biopharmaceuticals, medical devices, and the broader health sector, with assets under management totaling RMB 20 billion. TAILONG VC boasts a professional and seasoned investment team, focusing its investments on biopharmaceuticals, innovative medical devices, core CXO services and emerging sectors, as well as leading biopharmaceutical industry funds. The firm is committed to building a science-driven, cross-cycle value investment platform for the biopharmaceutical industry.

Qisheng Capital, established in 2009. To date, the firm holds three private equity fund manager licenses. Its assets under management include one sub-fund of a national-level government guidance fund, three sub-funds of municipal-level government guidance funds, two financial equity investment funds, and multiple private equity investment funds, with total AUM exceeding RMB 7 billion. Upholding the core philosophy of “seeking certainty amidst change,” the company focuses on value investing driven by technological innovation, domestic substitution, and technology empowerment, targeting hard-tech sectors such as biopharmaceuticals, semiconductors, high-end manufacturing, artificial intelligence, new materials, and new energy.

Tianhui Capital is a value investor, integrator, and navigator deeply rooted in the healthcare industry. With 24 years of experience in healthcare investment management, the company adopts a “Four-Pronged” investment strategy characterized by specialization, early-stage focus, platform-based operations, and internationalization. It focuses on key areas such as innovative drugs and novel therapeutic technologies, precision medicine, and high-end medical devices. Tianhui Capital has systematically established a unique post-investment management system featuring the “1+1+N” framework, the “3+3” model, and the “100-Day Navigation” program. Additionally, it has built the Biopharma Industry Ecosystem Co-creation and Sharing Platform 2.0. Through professional post-investment value-added services, the firm accelerates the innovative transformation and leapfrog development of China’s healthcare industry and its portfolio companies.