Alibaba Health and Huatai Zijin Co-Manage Zijin Hongyun Fund to Make Additional A-Series Investment in StemX Biopharma to Advance iPSC-Derived Cell Therapies for Neurological Disorders
XsellSmart
Stem Cell Therapy New Drug Developer
VCBeat has learned that XsellSmart Biopharmaceuticals (Suzhou) Co., Ltd. (hereinafter referred to as “XsellSmart”) has officially announced the completion of a multi-million RMB additional investment from Zijin Hongyun Fund in its Series A financing round. Zijin Hongyun Fund is co-managed (Co-GP) by Ali Health and Huatai Zijin. The invested funds will be used to further support the development pipeline of XsellSmart’s iPSC-derived cell therapies for major neurological disorders, represented by Parkinson’s disease.
Background of XsellSmart’s Series A Financing: On November 8, 2022, amidst the dual challenges of a broad winter in biomedical investment and financing as well as the pandemic, XsellSmart Biopharmaceuticals (Suzhou) Co., Ltd. (“XsellSmart”), which focuses on the R&D and industrialization of iPS cell-derived therapeutics, officially announced the completion of its Series A financing round exceeding RMB 200 million.This round of financing was co-led by Qiming Venture Partners, Lilly Asia Ventures, Jinyuan Zhanhong, and Zhongxin Capital; Yuanhe Holdings, Peking University Technology Transfer Fund (Founder Hesheng), and Junshan Capital participated as co-investors; while FreeS Fund, Sequoia China, and Jiacheng Capital continued to make additional investments.
This round of financing will be used to accelerate the preclinical research and development of XsellSmart’s pipeline of iPSC-derived cell therapies for neurological diseases, expand its professional team, and initiate pilot production of its clinical-grade iPSC-derived cell therapy products. This fully demonstrates institutional investors’ confidence in and support for the development of China’s iPSC-derived cell therapy sector, as well as their recognition of XsellSmart’s current progress and confidence in its growth potential.
Regarding the additional investment in XsellSmart by Alibaba Health and Huatai Zijin, Li Xiang, Founder, CEO & CSO of XsellSmart, stated:
“At present, the overall chill in investment and financing within the biopharmaceutical sector has not substantially reversed. This adversity helps the industry to calmly reflect and iterate, return to rationality, significantly raise the threshold for investment and financing, and promote the selective concentration of resources toward leading players, which is beneficial in the long run for the orderly and healthy development of the industry.”
We extend our sincere gratitude to the professional investors and teams from Alibaba Health’s Investment Division and Huatai Zijin for their support of XsellSmart! We also thank the investors participating in XsellSmart’s Series A financing and subsequent additional investments for their collective endorsement. This support not only demonstrates recognition and confidence in XsellSmart’s team innovation and execution capabilities, business progress, and core growth potential, but also reflects a long-term commitment to and faith in the values of XsellSmart and the field of innovative drug development based on human induced pluripotent stem cell (iPS)-derived cells in China.
Since its inception, XsellSmart has remained committed to self-reliance, deeply cultivating product quality and clinical value, while continuously evolving and demonstrating its practical industrialization capabilities and execution strength. The XsellSmart team is determined to ultimately “benefit millions of suffering patient families with unparalleled stem cell innovative drugs worthy of national distinction—let the results speak!”
Yang Ce, Head of the Investment Department and Managing Director of Alibaba Health, stated:
“iPSCs provide advanced technological tools and means for stem cell and regenerative medicine, offering breakthrough potential therapies for neurodegenerative diseases, including Parkinson’s disease. There is a significant unmet clinical need for such conditions, and we are optimistic about the development prospects of iPSC-based regenerative medicine in treating these diseases. As a leading company in the field, XsellSmart has built a high-caliber team with international vision, industrialization experience, clear strategic goals, and strong execution capabilities under the leadership of Dr. Li Xiang. The company has continued to make solid business progress, with promising prospects ahead. Alibaba will empower and continuously support Dr. Li Xiang and XsellSmart in their development. We look forward to Dr. Li Xiang leading XsellSmart to bring more positive advancements to the field, ultimately creating benefits for patients and society!”
Qin Zheng, Executive Director of the Investment Department at Alibaba Health, stated:
“Induced pluripotent stem cells (iPSCs) represent a Nobel Prize-winning, universal cell technology with immense application value in fields such as cell therapy, regenerative medicine, and drug development. Its development prospects have gained widespread recognition both domestically and internationally. We highly appreciate the team led by Dr. Li Xiang and look forward to XsellSmart’s products entering clinical trials soon, bringing breakthrough benefits to patients with neurological disorders. Alibaba is pleased to participate in this financing round and will work closely with the team to provide long-term empowerment, accelerating the clinical application of iPSC technology for the benefit of society.”
About XsellSmart
XsellSmart was founded full-time by Dr. Li Xiang upon his return to China. The company is dedicated to providing scalable, low-cost stem cell therapeutic solutions for major diseases that currently lack substantive clinical treatments, exemplified by Parkinson’s disease. Dr. Li Xiang’s long-term vision in establishing XsellSmart is “to develop unparalleled stem cell innovative drugs, bringing relief to millions of suffering patient families.”
Under the comprehensive leadership of its founder, Dr. Li Xiang, XsellSmart has assembled a full-time team of over 100 members, including 20 PhDs and postdoctoral researchers. The core team members hail from prestigious domestic and international institutions such as Peking University, Tsinghua University, Fudan University, Shanghai Jiao Tong University, Tongji University, the Chinese Academy of Sciences, the University of Wisconsin–Madison, Johns Hopkins University, and the University of California, as well as from renowned companies in the cell therapy industry. The team possesses cutting-edge stem cell therapy technologies and translational experience at the forefront of both international academia and industry. XsellSmart has completed multiple rounds of financing totaling hundreds of millions of yuan, led by investors including FreeS Fund, Qiming Venture Partners, Lilly Asia Ventures, Sequoia China, Jinyuan Zhanhong, and Sino-Singapore Capital.
XsellSmart has established leading key technology platforms for iPSC line reprogramming, iPSC gene editing, and induced differentiation of iPSCs into various cell subtypes, and has built a global patent portfolio. The company has developed GMP-grade iPSC lines and established animal models for evaluating the safety and efficacy of cell-based therapies. XsellSmart’s independently designed and constructed R&D center, GMP pilot-scale manufacturing facility, and quality control center, spanning thousands of square meters, are capable of supporting large-scale production of multiple clinical-grade iPSC-derived cells. XsellSmart’s core pipeline, featuring iPSC-derived dopaminergic neural precursor cells for the treatment of Parkinson’s disease, is expected to enter clinical trials in 2024.
XsellSmart Stands Out Among Hundreds of Pharmaceutical Companies, Officially Selected for the Roche China Accelerator. As a selected member of the accelerator, XsellSmart, with the collaborative support of the global expert advisory team and complementary scientific resources provided by the Roche China Accelerator, is accelerating the innovative drug development of its iPSC-derived cell therapies for major neurological disorders, exemplified by Parkinson’s disease.
XsellSmart has collaborated with multiple renowned universities, institutions, and Grade A tertiary hospitals on related technologies and early-stage clinical development. It serves as a member unit of the Cell and Gene Therapy Product Regulatory Research Professional Committee under the China Association for Drug Administration Research, and as a vice-chairman unit of the China Stem Cell Industry Alliance. Additionally, it has established a Postdoctoral Incubation Station in Suzhou Industrial Park.
XsellSmart has consecutively won the Excellence Award at the National Disruptive Technology Innovation Competition Finals in 2021 and 2022; was ranked among the Top 50 at the China Innovation and Entrepreneurship Competition National Finals in 2022; was recognized as a Potential Unicorn Enterprise in Jiangsu Province and a Unicorn Cultivation Enterprise in Suzhou City in 2022; was listed on the Venture50 Sprout List and the Healthcare Dual List in 2022; was included in the Zhiyin Innovative Drugs “Future Unicorn 30” Ranking; was named one of the “2022 China STAR Companies for Sci-Tech Innovation” by The Science and Technology Innovation Board Daily; was ranked among the “Top 10 Most Growth-Oriented Innovative Therapy Enterprises” on the 2022 China Biopharmaceutical Industry Value List; was selected as one of the “Top 5 Most Investment-Promising Emerging BioTech Companies” in 2022; was honored as one of the “Top 100 Most Innovative Medical Technology Products of 2022” by the VB-Find Award; was recognized as one of the “Most Investor-Favored Emerging Innovative Drug Companies in China (2022)” by PharmaCube; and was awarded the “Shining Star” Enterprise in the Frontier Diagnosis and Treatment Track by CIC Consulting in 2022.
Xinhua Daily featured XsellSmart on its front page and in thematic reports, highlighting the company’s “dark horse” momentum and its consecutive wins of the Ministry of Science and Technology’s Disruptive Technology Excellence Award (the highest honor) for two years running.
About Alibaba Health
Alibaba Health is the flagship platform of Alibaba Group, integrating online and offline resources in the pharmaceutical and healthcare industries to provide one-stop medical solutions. Centered on user needs, Alibaba Health leverages its existing strengths in pharmaceutical e-commerce while exploring innovative business models for internet-based healthcare. Built upon leading digital technologies and digital operational capabilities, with “cloud infrastructure” as the foundation, “cloud pharmacy” as the core, and “cloud hospital” as the engine, it delivers inclusive, convenient, efficient, and safe healthcare services to hundreds of millions of families. The Zijin Hongyun Fund, co-managed (Co-GP) by Alibaba Health and Huatai Zijin, is a specialized fund focused on the greater health industry, primarily investing in sectors such as biopharmaceuticals, medical devices, in vitro diagnostics, and consumer healthcare.
About Huatai Zijin
Huatai Zijin is a wholly-owned subsidiary of Huatai Securities (601688.SH) engaged in private equity investment. Leveraging the full business chain advantages of Huatai Securities and adhering to the investment philosophy of “growing together with entrepreneurs,” the company provides comprehensive capital services to its partners by drawing on its extensive financial and industrial resources. With a registered capital of RMB 6 billion and assets under management exceeding RMB 50 billion, Huatai Zijin manages multiple funds, including PE, M&A, FOF, and industry-specific funds. Committed to its industry positioning and grounded in rigorous sector research, Huatai Zijin has cultivated deep expertise and resources in strategic emerging industries such as healthcare and TMT. Its healthcare investment portfolio includes Mindray Medical (300760), WuXi AppTec (603259.SH/2359.HK), RemeGen (09995.HK), Getein Biotech (603387), BrightGene Bio-medical Technology (688166), Adda Pharma (688488), Shuoshi Biology (688399), Shuyu Pingmin Pharmacy Chain (301017), Pumen Technology (688389), HeartTone Medical (2160.HK), Vazyme Biotech (688105), Genetron Health, Ecolab, Sepax Technologies, Xinqing Medical, Yimei'er, Happy Dentistry, among others. By fully leveraging the capital operation strengths of the securities firm ecosystem, the company has facilitated the successful listing of numerous enterprises on the A-share and H-share markets and provided comprehensive support to industry leaders, thereby establishing leading capabilities in industrial investment and mergers and acquisitions.