Hangzhou Puyuan Bio Secures Tens of Millions in Pre-A Funding to Accelerate Development of Live Biotherapeutic Products for Autoimmune Diseases

VCBeat has learned at the earliest opportunity that, recently,Hangzhou Puyuan Biotechnology Co., Ltd. (hereinafter referred to as “Puyuan Biotech”), one of the first companies in China dedicated to the research and development of live biotherapeutic products for autoimmune diseases, has completed a Pre-A financing round worth tens of millions of yuan. This marks its second round of funding within just one year, following a ten-million-yuan angel investment last year. The round was led by Xinghua Dingli Venture Capital, with participation from Hangzhou Xihu Kechuang Equity Investment Co., Ltd. Puyuan Biotech stated that the proceeds will be used for further functional development and clinical studies of its flagship strains, including PM001, PM002, and PM005; market expansion of its proprietary Gibson probiotic brand; and the construction of R&D and production facilities.。

Hangzhou Puyuan Biotechnology Co., Ltd. was founded in April 2021 by Professor Liang Qiming from the School of Medicine, Shanghai Jiao Tong University, with Professor Wang Yuhao from the School of Medicine, Zhejiang University, serving as Chief Scientist.

Professor Liang Qiming earned his degree from Florida State University and completed his postdoctoral research at the University of Southern California. With over a decade of experience in biomedical R&D, he has long been dedicated to mechanistic and translational research on immunity against microbial infections. He has identified multiple bacterial strains that regulate autoimmune diseases, and his findings have been published repeatedly in prestigious international journals (Cell Stem Cell 2016, 2020; Med 2021; Nature Immunology 2022), garnering widespread international recognition.

Professor Wang Yuhao earned his Ph.D. from the University of Texas Southwestern Medical Center in the United States, where he studied under Professor Lora Hooper, a member of both the U.S. National Academy of Sciences and the National Academy of Medicine. His research group is dedicated to exploring the symbiotic relationship and mutual interactions between the gut microbiota and the host, with a focus on elucidating the molecular mechanisms by which the gut microbiota regulates host metabolism and immunity. Their findings have been published multiple times in prestigious international journals such as Science (2017, 2019, 2023), and have received numerous commentaries and highlight features in renowned journals. One of their studies was recognized by the American Gastroenterological Association as the Best Gut Microbiome Research of the Year.

Building on in-depth research into the impact of gut microbiota on the immune system, the company utilizes microbial ecological preparations to modulate gut microbiota and regulate human immune homeostasis, thereby mastering a series of novel approaches for the prevention and treatment of autoimmune diseases. Currently,Puyuan Biotechnology has established a "localized" functional strain library, with a layout of over 10,000 strain resources. Among them, there are more than 2,600 strains with independent intellectual property rights and excellent characteristics. Additionally, multiple star strains have been screened for indications such as inflammatory bowel disease, multiple sclerosis, ankylosing spondylitis, liver injury, tumor immunity, and diabetes.。

Next,Hangzhou Puyuan Biotechnology Co., Ltd. will focus on autoimmune diseases and the probiotics industry, leveraging food and foods for special medical purposes (FSMP) as entry points, with the goal of researching, developing, and manufacturing live biotherapeutic products for clinical applications. In alignment with the national “Healthy China” strategy, the company will expand into both domestic and international markets.。

Yang Zhenhuan, Investment Director at Xinghua Dingli, stated: Live biotherapeutic products have broad applications and a vast market. As the mechanisms of interaction among various human microbiota continue to be elucidated, innovative achievements are constantly emerging. Through this additional investment in Hangzhou Puyuan Biotechnology Co., Ltd., we have observed positive progress in its Investigator-Initiated Trials (IITs). Upon the completion and operation of its new manufacturing facility, we believe the company’s production capacity will be significantly enhanced, ensuring stable and scalable future product supply. We remain firmly optimistic about the prospects of this field and the development potential of Hangzhou Puyuan Biotechnology Co., Ltd.

Zhao Chenyan, Head of Biopharmaceutical Investment at Hangzhou Xihu Kechuang Equity Investment Co., Ltd., stated: In recent years, with the formal approval of two live biotherapeutic products internationally, microbial pharmaceuticals have emerged as a new hotspot in the innovative drug sector, offering significant market potential for related R&D enterprises. Leveraging years of accumulated expertise in the development of live biotherapeutic strains and research into microbial therapeutic mechanisms by professors from Shanghai Jiao Tong University School of Medicine and Zhejiang University School of Medicine, Puyuan Biotechnology has developed several food-grade strains targeting inflammatory bowel disease, multiple sclerosis, and ankylosing spondylitis. Currently, its most advanced pipeline candidate has entered investigator-initiated clinical trials. Meanwhile, Puyuan Biotechnology’s consumer-facing probiotic products are rapidly expanding their market share, with the potential to become one of China’s top consumer probiotic brands. We maintain a long-term bullish outlook on Puyuan Biotechnology’s robust dual-track development model.

Zhejiang Xinghua Dingli Private Equity Fund Management Co., Ltd., established in 2022, is an emerging professional venture capital firm specializing in biopharmaceuticals, new energy, and the pan-semiconductor sector. The founding team possesses extensive venture capital experience, having invested in over 50 companies with a total investment exceeding RMB 1.5 billion. A significant number of these early-stage investments have grown into star enterprises within their respective niche markets, with multiple companies achieving IPO listings or successful exits through mergers and acquisitions. Currently, Xinghua Dingli manages funds totaling over RMB 500 million and has strategically invested in a portfolio of high-quality projects. Demonstrating rapid growth against market trends, the firm has been honored with titles such as “2022 Zhejiang Emerging Venture Capital Institution” and “Top 5 Emerging Venture Capital Institutions in Invest in China 2023.”

Xihu Sci-Tech Venture Capital, established in October 2020, is a state-owned enterprise directly under the Xihu District People’s Government of Hangzhou. It serves as the management and operating entity for three major fund clusters—the Xihu District Direct Investment Fund, the Venture Capital Guidance Fund, and the Industrial Fund—as well as two guarantee platforms: financing guarantees and the technology risk pool. The company manages assets totaling nearly RMB 10 billion. Its investment focus centers on five key sectors: life and health, digital economy, intelligent manufacturing, aerospace information, and cultural consumption. Among its portfolio companies, it has cultivated a total of 23 unicorns (or quasi-unicorns), including nine added in the past year, accounting for 17.3% of Hangzhou’s total newly added quasi-unicorns. This makes it the venture capital institution with the highest number of newly cultivated quasi-unicorns in Hangzhou on an annual basis. Additionally, it has nurtured 20 provincial-level or higher “Specialized, Refined, Differential, and Innovative” (SRDI) enterprises, including six at the national level.