Asia Regenerative Medicine Secures Tens of Millions in Pre-A+ Funding to Advance Bioartificial Kidney and Pancreas Programs

In January 2023, Shenzhen Huayuan Regenerative Medicine (AR) completed a Pre-A+ financing round of tens of millions of yuan, led by Efung Capital, with participation from Zhenghe Zhengxin and additional investment from existing shareholders. Mingxi Capital and Chongying Capital served as financial advisors. The funds raised in this round will be used to advance large-animal studies for key products, investigator-initiated clinical trials, and preparations for Investigational New Drug (IND) applications.

AR Regenerative Medicine, established in 2018, centers on stem cell and tissue engineering device technologies. It is dedicated to developing implantable bioartificial organs to address organ function decline, end-stage diseases, and the shortage of donor organs, thereby extending patients’ lives with high quality. The company is developing artificial kidneys and artificial pancreases for kidney disease and diabetes, respectively. Products related to the artificial kidney have completed large-animal studies, laying the groundwork for investigator-initiated clinical trials and product commercialization. Currently, the company has established a comprehensive production base for tissue engineering devices, a stem cell differentiation platform, an animal modeling team, and a process scale-up team.

For this round of financing,Mr. Zheng Lixin, CEO of AR Regenerative Medicinestated: “We appreciate Efung Capital and Beijing Zhenghe Zhengxin for their recognition of Huayuan’s endeavors in the field of bio-artificial organs. Efung Capital has successfully invested in numerous outstanding enterprises in the innovative healthcare sector, such as Real Biotech, the developer of Azvudine, China’s first oral COVID-19 drug; Chipscreen Biosciences, the first biopharmaceutical company listed on the STAR Market; Hegen Biotechnology, China’s leading gene therapy CDMO listed company; and 3D Medicines, a pioneer in transforming cancer into a chronic disease management model. Coupled with Zhenghe Zhengxin’s extensive experience in incubating and mentoring high-tech enterprises, Huayuan is more confident than ever in focusing on the development of bio-artificial organs and producing safe and effective tissue-engineered products. The proceeds from this financing round will be used to support investigator-initiated clinical trials for our lead product and to file the Investigational New Drug (IND) application for our cell therapy products, with the aim of becoming the first globally to bring similar products to human clinical use.”

Mr. Zhu Jinqiao, Founder and Chairman of Efung Capital“With the maturing of artificial organ technologies and regulatory review frameworks in recent years, market demand and research teams have continued to grow rapidly, presenting broad prospects for the industry. The AR Regenerative Medicine team, led by Mr. Zheng Lixin, is professional and comprehensively skilled, covering cell therapy, tissue engineering, and clinical fields, with extensive experience in R&D and commercialization. We believe the team will lead the company in optimizing its pipeline, concentrating resources, and maintaining a leading position. As an investment institution focused on biopharmaceuticals and medical devices, we are pleased to lead this round of financing for AR Regenerative Medicine. Moving forward, we will continue to closely monitor and support AR Regenerative Medicine, fully promoting the development and rise of China’s new generation of bio-medical device technologies.”

Mr. Yang Guangyu, Founder and Chairman of Zhenghe Zhengxinstated: “The field of artificial organs is a sunrise industry. The Huayuan Regenerative Medicine management team, led by Mr. Zheng Lixin, possesses profound insights into the sector and demonstrates comprehensive capabilities that integrate R&D with industrialization. We believe that under the leadership of Huayuan’s scientific team and management, the company will achieve revolutionary breakthroughs in the field of artificial organs. Zhenghe Zhengxin is an investment fund established by a group of investment bankers who have focused on the capital markets for many years. Its team members have incubated and nurtured more than 50 listed companies, accumulating extensive experience in high-barrier-to-entry projects and their industrial implementation. Zhenghe Zhengxin’s philosophy is to grow alongside high-tech enterprises such as Huayuan Regenerative Medicine, serve the real economy, and give back to society and investors’ trust.”

Ms. Feng Yi, Head of Mingxi Capitalstated: “AR possesses robust capabilities in stem cell-induced differentiation and biomaterials R&D. With safe and effective implantation methods as its foundation, the company is continuously advancing its product development pipeline. Leveraging the founding team’s extensive industry experience and strong support from a top-tier panel of experts, AR has achieved a leading position in the regenerative organ sector and will continue to drive significant transformation in the field of regenerative organs.”