iCell Therapeutics Completes Over RMB 100 Million Series A++ Financing to Advance Clinical Development of 'Epigenetic Memory-Cleared' Super-iPSC Platform

VCBeat’s New Medicine was the first to learn that,August 28, 2023,Suzhou Aikailiyuan Biotechnology Co., Ltd. (hereinafter referred to as: Aikai Bio) announced the completion ofA++ Round Financing of Hundreds of Millions of Yuan, this round of financing was led by Zhiyi Investment, with follow-on investment from Hangzhou Xihu Kechuang Equity Investment Co., Ltd. The funds raised will be primarily used forSustained Industrialization of Super iPSCs (Induced Pluripotent Stem Cells) with “Erased Epigenetic Memory”Work, andTumors, Parkinson's Disease...and the clinical advancement of other product pipelines.

Aikai Biotech was established inMarch 2021, is a company dedicated toSuper iPSC-Derived Cell Therapy Drugsdevelopment enterprise. The company is grounded in source innovation and industrial translation capabilities, focusing onImmunocyte Therapy and Regenerative Medicinein the field, dedicated to providing patients with universal, effective, and accessible cell therapy drugs.

Aikailiyuan Biotechnology has been established for over two years, efficiently creating a rare industry presence.Source Innovation Capability, iniPSC, Gene Editing, Stem Cell Differentiationefficiently advancing technology development, transfer, and validation in these fields, while establishing an independent and robust intellectual property system. Recently, another groundbreaking achievement by Professor Liu Xiaodong, founder of Aikailiyuan Biotechnology, was published inNaturemagazine, resolving the long-standing issues that have plagued the industryChallenges of Epigenetic Abnormalities in Human iPSCs, namely, human iPSCs retain the epigenetic memory of their cell types of origin, as well as epigenetic aberrations that arise during reprogramming. Epigenetic abnormalities cause functional discrepancies between human iPSCs, the human embryonic stem cells (ESCs) they are intended to mimic, and subsequently derived specialized cells, thereby limiting clinical applications. By mapping the dynamic epigenetic changes during cellular reprogramming, the research team identified the timing of epigenetic aberration occurrence and subsequently developedTNT (transient-naive-treatment) Reprogramming Technology: By mimicking the epigenomic resetting of cells during early embryonic development, the "past-life memory" of the cells—namely, the epigenetic memory of the source cells—is cleared, thereby obtainingSuper iPSCs Infinitely Close to Human ESCs!

Aikailiyuan Biotechnology is currently working on the technological translation of the aforementioned breakthrough achievements., empowering the development of the company's current and future product pipelines. Meanwhile, iCam Bio has established prominent industrialization capabilities, including the proprietary iCam-iPSC Super Stem Cell Platform, the iCam Intelligent Engineering Platform, and the iCam Algorithm-Guided Expansion and Differentiation Platform. It has also built a GMP-compliant three-tier iPSC cell bank to efficiently support product pipeline development. Currently,Multiple proprietary products based on super-powered iPSCs from Aikailiyuan Biotechnology are in the IND-enabling stage.

Dr. He Zhiyong, Founder and CEO of Aikailiyuan Biotechnology, stated:We extend our sincere gratitude to Zhiyi Investment, Hangzhou Xihu Kechuang Equity Investment Co., Ltd., and other new and existing investors for their support! The successful completion of this financing round serves as a continued endorsement of the company’s capabilities in original innovation and industrialization. Since its inception, Suzhou Aikailiyuan Biotechnology Co., Ltd. has remained committed to original innovation and promoting industrialization, continuously advancing“Erased epigenetic memory”Clinical Applications of Ultra-Potent iPSC Technology.Here, I would also like to express my gratitude to the company team for their efforts and dedication over the past two years. By efficiently carrying out technology transfer and commercialization, rapidly establishing R&D and GMP pilot-scale platforms, and accelerating product development and validation, we have enabled the company to achieve rapid yet steady growth. We will remain true to our original mission by translating cutting-edge innovations into universal, effective, and affordable cell therapy products for patients.

Zhao Fu, Founder and CEO of Zhiyi Investment, stated:DeviceLife sciences, a field characterized by disruptive innovation, is a key focus area in Zhiyi’s ESG investment strategy. We place particular emphasis on the cell and gene therapy (CGT) sector, including cell therapy, mRNA technology, and gene therapy.iPSCs represent the most significant revolutionary breakthrough in the field of cell therapy and will make major contributions to humanity’s fight against cancer, organ repair, and anti-aging.Zhiyi Investment highly recognizes the globally innovative achievements made by the iCELL Biologics team, led by Dr. Liu Xiaodong and Dr. He Zhiyong, in the field of induced pluripotent stem cells (iPSCs). With world-leading technology and a top-tier industry team, iCELL Biologics has established multiple global best-in-class pipelines in key therapeutic areas such as oncology, Parkinson’s disease, and ophthalmology, poised to create significant value for a vast number of patients in the future.

Zhiyi Investment is honored to once again support the company following its participation in the Series A+ financing round last year.We are pleased to witness the company’s comprehensive progress in team building, pipeline advancement, and industry collaboration, and we look forward to iCell Biologics’ continued efforts in advancing multiple blockbuster pipelines, including those for tumor immunotherapy and Parkinson’s disease, into clinical stages in the near future.

Xihu Sci-Tech Venture CapitalChairman Shen LifenIndicates:iCell Bioscience is a leading enterprise in the field of iPSC-derived cell therapy, with outstanding capabilities in source innovation and industrial translation., has continuously released multiple groundbreaking research achievements, including the recent publication in Nature on TNT (transient-naive-treatment) reprogramming. This is what impresses us most, and we are delighted to participate in this round of financing for Aikailiyuan Biotechnology. Life and health is a key industrial development focus in Xihu District, Hangzhou. In the future, Hangzhou Xihu Kechuang Equity Investment Co., Ltd. will actively connect resources, serve enterprise development, and help Aikailiyuan Biotechnology achieve breakthroughs in fields such as immune cell therapy and regenerative medicine!

InnoVision Capital, established in 2016 by former senior executives from KKR’s Asia team, is a representative next-generation private equity firm in Asia. With two decades of successful investment experience at top-tier global institutions, the team adheres to world-class investment and risk management principles, focusing on ESG and green economy sectors with significant growth potential in Asia and China.

Zhiyi Capital manages a total asset base of nearly RMB 20 billion. It currently oversees three RMB-denominated comprehensive private equity (PE) funds and one USD-denominated PE fund. As a representative institution of the new generation of PE firms in Asia, Zhiyi Capital combines a top-tier international perspective with deep industrial resources to deeply explore investment opportunities in ESG, green and low-carbon initiatives within the green economy era, food security, and life sciences. The firm focuses on investing in industry leaders with global competitiveness and significant growth potential. Zhiyi Capital’s portfolio includes numerous leading enterprises that possess globally advanced technologies, strong product capabilities, and dominant market positions both domestically and internationally.

Xihu Sci-Tech Innovation Investment, a state-owned enterprise directly under the Xihu District People’s Government of Hangzhou, 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 sci-tech risk pool. It manages assets totaling nearly RMB 10 billion.

Hangzhou Xihu Kechuang Equity Investment Co., Ltd. has thoroughly implemented the major strategic and industrial development requirements of Xihu District. Centering on its development positioning of “retaining and stabilizing businesses, attracting large-scale and high-quality investments, and fostering industrial agglomeration,” the company leverages state-owned capital to play a leading, catalytic, and integrative role in industrial development. It is building a full-lifecycle sci-tech innovation financial service system to channel capital resources toward the five major industrial chains in Xihu District, thereby facilitating industrial transformation and enhancing the district’s overall competitiveness through the optimized allocation of state-owned capital.