Shijian Biotech Secures RMB 100 Million Series A+ Financing to Advance Innovative ADC Pipeline

May 2023,Shanghai Escugen Biotechnology Co., Ltd. (“Escugen”) announced the completion of its RMB 100 million Series A+ financing round. The round was led by Toukong Donghai, with participation from Hetang Venture Capital and existing shareholder Zhangke Herun. Xingyuan Zhitong served as the exclusive financial advisor for this transaction.

Escugen was founded in 2017 by senior overseas-returned scientists with decades of experience in antibody-based novel drug discovery, process development, and quality management at both international and domestic biopharmaceutical companies. The company remains dedicated to the R&D of innovative antibody-drug conjugates (ADCs), continuously launching next-generation innovative drugs by leveraging target innovation, cultivating differentiated competitive advantages, and expanding differentiated clinical pathways through specific combination therapies. Meanwhile, Escugen boasts an entrepreneurial team covering the entire professional chain of biologic drug R&D, with capabilities spanning antibody engineering, novel drug discovery, bioconjugation, preclinical studies, as well as process and quality research, particularly in the area of clinical development, which is scarce in the industry.

Escugen has advanced three pipeline products into clinical trials, including an antibody-drug conjugate (ADC) with “best-in-class” potential and innovative antibodies targeting “first-in-class” targets. The lead candidate, ESG401, is a TROP-2-targeting ADC. Existing research data consistently demonstrate its significant advantages in safety, efficacy, and manufacturing process. It has currently entered Phase Ib/II clinical trials, with early clinical data revealing a favorable safety profile and promising efficacy in heavily pretreated metastatic triple-negative breast cancer (TNBC) and HR-positive breast cancer. Escugen has established a next-generation ADC technology platform with independent intellectual property rights. By employing highly potent and low-toxicity camptothecin-based payloads, this platform not only delivers superior tumor-killing activity compared to existing GGFG-Dxd-type ADCs but also exhibits robust resistance to drug resistance. Furthermore, it demonstrates powerful and durable antitumor activity in models featuring tumors with low-abundance, high-heterogeneity targets and high tumor burden, along with excellent pharmacokinetic properties. Leveraging this advantage, Escugen is actively expanding its portfolio of innovative targets and ADC pipelines with enhanced safety and efficacy profiles through diverse collaborative partnerships.

Escugen also has a clinical-stage pipeline candidate, ESG206, a monoclonal antibody targeting a novel mechanism of action. It holds a leading international position in its therapeutic area, addressing relapsed/refractory and treatment-resistant lymphomas and leukemias, with potential further expansion into various autoimmune diseases. The ESG103 single-domain antibody will be combined with a partner’s patented novel drug to treat major oncology indications not covered by existing therapies.

Dr. Qing Zhou, Founder and CEO of Escugenstated: “We are deeply grateful to leading industry investors, Toukong Donghai and Hetang Venture Capital, for their recognition of Escugen, and we also thank our existing shareholder, Zhangke Herun, for its continued support. The successful completion of this financing round provides the financial assurance necessary to rapidly advance our first clinical candidate, the Trop-2 ADC, into registrational clinical trials and to initiate commercial-scale manufacturing of the product. Escugen will remain focused on the research and development of innovative antibody-drug conjugate (ADC) therapeutics. Guided by unmet clinical needs, with the clinical development of ESG401 as our flagship program, and leveraging our next-generation ADC platform technology, we will continue to create iteratively improved innovative ADC products. By integrating innovations in antibody and ADC platform technologies, novel target discovery, and differentiated clinical development strategies, we aim to benefit patients worldwide.”

Zhang Gengsheng, Business Partner at Toukong Donghaistated, “Clinical trials of Escugen’s products have demonstrated exceptional safety and efficacy, positioning them to become Best-in-Class and offering patients more options and clinical benefits. We believe Escugen has the potential to grow into a towering tree, and we will continue to provide comprehensive support for its robust development.”

Qiu Qing, Managing Director of Hetang Venture Capitalstated: “We are delighted that Hetang Venture Capital has participated in Escugen’s current financing round. Innovative antibody-drug conjugates (ADCs) represent one of the frontiers in biopharmaceuticals, and we are optimistic about their potential as novel therapeutics to continue addressing more unmet clinical needs. Escugen demonstrates strong innovation capabilities in both ADCs and antibody-conjugated immune agonists, with a pipeline portfolio that strikes a balance between innovation and risk. The development progress of its core R&D assets ranks among the top tier in China, and positive signals have already been observed in clinical trials. We have high expectations for the future clinical and market performance of the company’s products.”

Gu Jiefeng, Deputy General Manager of Zhangke Herun Venture Capital Fund“Leveraging its core strengths, Escugen conducts multi-directional explorations based on innovative antibody target discovery, adheres to prudent product selection, and demonstrates high-level process development capabilities. The company boasts an experienced team with strong stability, excellent synergy, and robust execution. Zhangke Herun Fund will continue to support Escugen, looking forward to the successful commercialization of its products in the future, thereby delivering superior therapeutic outcomes for patients in China.”

Fu Jia, Managing Director of Xingyuan Zhitongstated: “Escugen has always been guided by target and technological innovation as well as clinical needs. As its products advance into clinical trials and demonstrate continuous clinical benefits for patients, the company’s robust R&D capabilities have been truly validated. We are delighted to collaborate with Escugen again and look forward to seeing more of its promising product pipeline enter clinical development.”

Shenzhen Investment Holdings Donghai Investment Co., Ltd. (hereinafter referred to as “Investment Holdings Donghai”) was established in January 2015 as an equity investment institution jointly initiated by Shenzhen Investment Holdings Co., Ltd., Qingdao Haier Technology Investment Co., Ltd., and Shenzhen Chuangdongfang Investment Co., Ltd. Investment Holdings Donghai focuses on three core sectors: industrial technology, digital intelligence, and life health, building an investment management system led by industry research. By closely collaborating with industrial capital, the company invests in high-quality projects across the industrial chain, emphasizing premium post-investment services and risk management to drive continuous value appreciation of its portfolio companies. It grows alongside small, medium, and micro enterprises, fostering the vigorous development of strategic emerging industrial chains and promoting urban technological innovation and industrial incubation.

Lotus Pond Venture Capital was restructured and established in 2014 against the strategic backdrop of promoting the commercialization of scientific and technological achievements at Tsinghua University. It is a professional investment management firm primarily focused on early-stage investments in technology-driven innovative enterprises. Lotus Pond Venture Capital concentrates on key sectors including life sciences, medical devices, information technology, and advanced manufacturing. The firm maintains a long-term focus on investing in innovative companies with core hard technologies, while distinguishing itself through the incubation and investment of scientific and technological achievements generated by clinical experts from universities and top-tier hospitals. To date, Lotus Pond Venture Capital has invested in over 70 projects, two-thirds of which hold dominant positions in their respective niche markets, delivering strong financial returns to its fund investors.

Managed by Zhangjiang Sci-Tech Investment, a wholly-owned subsidiary of Zhangjiang Group, and anchored by the Pudong Science and Technology Innovation Fund of Funds, the Zhangke Herun Fund focuses on innovative drugs, medical devices, healthcare services, and other sectors. As Zhangjiang Group’s biomedical investment platform, the fund leverages Zhangjiang’s industrial ecosystem and park resources to support the robust growth of high-quality, high-potential enterprises in the life and health industries.

StartPointAdvisors is a financial advisory firm specializing in the healthcare and medical industry. Established in 2020, its team members hail from renowned industry institutions and possess extensive professional experience. Headquartered in Beijing, StartPointAdvisors maintains offices in Shanghai, Suzhou, Hangzhou, and Guangzhou. Since its inception, the firm has achieved comprehensive coverage across the healthcare and medical sector, earning a strong reputation and favorable standing within the industry. It is currently recognized as one of the most representative emerging investment banks in China’s healthcare and medical field.