MagicRNA Secures Tens of Millions in Angel+ Round Within One Year of Founding, Backed by Three Listed Strategic Investors

Recently, Shenzhen Hongxin Biotechnology Co., Ltd. (hereinafter referred to as “Hongxin Biotech”) announced the completion of its Angel+ round financing, amounting to tens of millions of RMB. This round was led by Hongtao Capital, with strategic investments from Haichuang Pharmaceutical (688302.SH) and Dongbao Industrial Group, and follow-on investments from institutions including Nanling Fund, Shenzhen Guarantee Group, and Zijin Gang Capital. This marks Hongxin Biotech’s second financing round this year, following a strategic investment of over RMB 10 million from Tianyu Shares (300702.SZ) in April 2022. The proceeds from this round will be used for the clinical development of the company’s core products and team expansion, among other purposes. Synthesis Capital served as the exclusive financial advisor for this financing round.

Shenzhen Hongxin Biotechnology Co., Ltd. (MagicRNA), established in December 2021, is an innovative biopharmaceutical company dedicated to the research and development of therapeutic mRNA drugs for gynecological and urological tumors. Guided by its corporate mission to “deepen expertise in nucleic acid drug delivery and benefit patients through RNA therapies,” MagicRNA was selected as one of the seventh batch of innovative enterprises by the Shenzhen Engineering Biology Industry Center. Located in the China Merchants Smart Park in Guangming District, Shenzhen, the company occupies a total area of 2,700 square meters, with its state-of-the-art R&D center commencing operations in October 2022.MagicRNA has established three core technology platforms—mRNA sequence design, high-efficiency mRNA synthesis, and efficient LNP delivery—to accelerate the development and industrialization of mRNA therapeutics. In its area of expertise, lipid nanoparticle (LNP) delivery, MagicRNA has filed over ten invention patents, including multiple PCT and European/U.S. patents, four of which have been granted. The company currently possesses China’s largest library of ionizable amino lipids with fully independent intellectual property rights. Regarding its core ionizable amino lipids, MagicRNA has not only completed global patent landscaping and freedom-to-operate (FTO) analyses but also achieved industrial-scale production in collaboration with its strategic investor, Tianyu Shares (Stock Code: 300702.SZ). These achievements lay a solid foundation for the development of MagicRNA’s innovative mRNA drug pipeline and its out-licensing and collaborative development partnerships.

Gynecological and urological tumors are currently primarily treated with radiotherapy and chemotherapy in clinical practice, yielding limited therapeutic efficacy. Taking prostate cancer as an example, global statistics indicate that it ranks second in incidence and fifth in mortality among men. According to data from the National Cancer Center of China, the number of prostate cancer cases in China increased from 880,000 in 2015 to 1.08 million in 2019, and is projected to reach 1.99 million by 2030. Once prostate cancer progresses to metastatic castration-resistant prostate cancer (mCRPC), the five-year survival rate drops to merely 15%, highlighting a significant unmet clinical need. As a novel immunotherapy, mRNA drugs have demonstrated excellent protective efficacy and a favorable safety profile in the prevention of infectious diseases. The development of mRNA therapeutics for oncology is gaining momentum worldwide. Hongxin Bio has shown in multiple preclinical animal models that its mRNA drugs can either completely cure or significantly inhibit tumor growth. Leveraging the strong medical expertise of Sun Yat-sen University, Hongxin Bio plans to advance several mRNA drug candidates into clinical trials in 2023.

Dr. Zha Gaofeng, Founder of Hongxin Bio“Sincere thanks to the investors for their recognition and support of Hongxin Bio. This round of financing marks another milestone in Hongxin Bio’s rapid development. Within just one year since its establishment, Hongxin Bio has successfully built its R&D and management teams, designed, constructed, and put into operation its R&D center, developed and industrialized its core delivery technology, and advanced the development of multiple mRNA therapeutic drug pipelines. These achievements further demonstrate that our team is professional, efficient, and courageous in striving for excellence. In addition, we have gained the trust and investment of several institutional investors and listed companies. In 2023, our first project will enter the clinical stage, allowing us to evaluate the therapeutic efficacy of our mRNA drugs through actual clinical outcomes, ultimately benefiting patients.”

Mr. Qiu Jun, Chairman of Hongtao Capital“It has been just one year since the establishment of Hongxin Biologics. Under the leadership of its founding team, the company has solidly laid out its strategy in the nucleic acid drug delivery sector and built a robust patent barrier. Furthermore, it has successively initiated deep collaborations with pharmaceutical companies such as Tianyu Pharmaceutical and Haichuang Pharmaceutical, fully demonstrating the team’s operational efficiency and clear strategic vision. We believe that Hongxin Biologics is poised to become an emerging force among Chinese biotech companies.”

Mr. Li Jiahong, Chairman of Dongbao Industrial“mRNA therapeutics, as an emerging class of biologics, represent a key focus area for Tonghua Dongbao Industrial Co., Ltd. The founding team of Hongxin Biopharma is highly efficient and pragmatic, aligning closely with the core values of Tonghua Dongbao. Within just one year since its establishment, Hongxin Biopharma has achieved remarkable progress. We are confident that Hongxin Biopharma will undoubtedly bear fruitful results in the future, addressing unmet clinical needs and benefiting patients through mRNA-based therapies.”

Mr. Zhou Sen, Partner at Nanling Fund“Nanling Fund has made strategic investments in the biopharmaceutical sector. mRNA therapeutics represent a cutting-edge international technology, and Hongxin Bio’s R&D capabilities and progress place it among the top tier in China. Completed experiments have demonstrated that its drug candidates exhibit significant efficacy and an improved safety profile, making the company’s future prospects highly promising.”

Dr. Wu Chen, Head of the Medical Group at Shenzhen Guarantee Group“It is projected that nucleic acid therapeutics will emerge as the third major drug category, following small-molecule chemicals and large-molecule biologics, with delivery systems representing a key focus and challenge in this specialized field. Over the past three years, spurred by urgent public health emergencies such as the COVID-19 pandemic, nucleic acid therapeutic R&D companies have sprung up across China. We believe that Hongxin Bio, leveraging its core LNP technology platform, will stand out in this highly competitive sector, expanding from China to the global stage and leading the globalization of Chinese nucleic acid therapeutic enterprises.”

Dr. Chen Jun, Chairman of Zijin Gang Capitalstated: “We are highly optimistic about the nucleic acid therapeutics sector, which enables disease intervention at its source and offers numerous advantages, including high specificity, low production costs, and a wealth of druggable targets. With broad application prospects and significant progress in oncology, chronic diseases, and preventive vaccines, this field is poised to lead the third wave of innovation in the pharmaceutical industry. Meanwhile, we hold Hongxin Bio in high regard. In just one year, it has secured invention patents for LNP (lipid nanoparticle) technology—a critical strategic asset in nucleic acid drug development—and garnered interest from multiple listed companies, positioning it to become an industry leader.”

Hongtao Capital primarily invests in hard-tech enterprises within the fields of information technology and biopharmaceuticals, standing as a leading investment firm in China’s small nucleic acid drug sector. By gaining insights into historical shifts and industrial evolution, it selects highly efficient market-oriented enterprises, partners with outstanding entrepreneurs, and empowers industry unicorns. Its key investment portfolio includes SMIC, Danxia Biologics, Keanda, Junshi Biosciences, Renhui Bio, UBTECH, Hongming Electronics, Ribo Life Science, Aim Vaccine, Haisco Pharmaceutical, Sinotech Pharmaceuticals, Huahao Zhongtian, Damian Bio, Abogen Biosciences, Better Biopharma, and ZhiXiang JinTai.

Haichuang Pharmaceutical (688302.SH) is an international innovative pharmaceutical company built on deuterium substitution and PROTAC technology platforms, aiming to develop Best-in-Class and First-in-Class drugs that address significant unmet clinical needs. The company focuses on the research and development of innovative therapeutics in major therapeutic areas such as oncology and metabolic diseases, with a commitment to providing patients with safe, effective, and affordable medications, while striving to develop and produce innovative drugs with global rights.

Dongbao Industrial Group Co., Ltd., established in 1992, is an investment firm focused on the biopharmaceutical sector. Over the past three decades, Dongbao Industrial Group has developed a closed-loop model integrating “investment, incubation, and industrialization” through extensive practical validation. It identifies and addresses significant unmet clinical needs, enabling full-lifecycle health management spanning “diagnosis–treatment–cure,” and implements industrial incubation “from 0 to 1.” The group has successfully incubated several publicly listed companies, including Tonghua Dongbao (600867.SH), Amoytop Biotech (688278.SH), and Gan & Lee Pharmaceuticals (603087.SH).

Nanling Fund was established in September 2017. It is China’s first venture capital fund controlled by a collective joint-stock cooperative company, jointly founded by Shenzhen Nanling Village and several professionals with extensive practical experience and outstanding investment performance in the venture capital sector. The fund’s portfolio companies span strategic emerging industries, including information technology, high-end equipment and advanced manufacturing, biopharmaceuticals, artificial intelligence, and new energy.

Shenzhen Guarantee Group Co., Ltd. (hereinafter referred to as “Shenzhen Guarantee Group”) is a state-owned professional financial services institution established with capital contribution from the Shenzhen Municipal People’s Government. It currently has a registered capital of RMB 11.4 billion and net assets exceeding RMB 19 billion. The Group holds the highest AAA credit rating in the capital market and an AAA credit rating for guarantee institutions. Over the past two decades since its establishment, Shenzhen Guarantee Group’s achievements in serving micro, small, and medium-sized enterprises (MSMEs) have been recognized by relevant national ministries and commissions, and it has been designated as a “National Demonstration Platform for Public Services for Small and Medium-sized Enterprises” by the Ministry of Industry and Information Technology of China. Shenzhen Guarantee Group has actively promoted the listing initiative for SMEs and has successfully facilitated the listing of 136 client companies on main boards and SME boards both domestically and internationally. Through its two specialized subsidiaries, “Shenzhen SME Guarantee Venture Capital Co., Ltd.” and “Shenzhen SME Guarantee Talent Equity Investment Fund Management Co., Ltd.,” the Group is committed to providing innovative financial services that combine direct and indirect financing for enterprises.

Zijin Gang Capital was established in May 2014, with assets under management exceeding RMB 5 billion. It has identified nearly one hundred outstanding enterprises in sectors such as healthcare, TMT (Technology, Media, and Telecom), new materials, and new consumption, helping entrepreneurs realize their self-worth. Key investment cases in the healthcare sector include: MicroTech Medical (02235.HK), Shengkang Pharmaceutical, Hengrui Yuanzheng, Nurotron, CAS Ruiji, Burui Technology, Xinhai Biology, Ruihua Pharmaceutical, Yuanxing Gene, Rouling Technology, Elephant Acoustics, Shisenhai Medicine, Jingdan Biology, Yurucheng, Yabei Technology, Renchen Biology, Huayao Kangming, Cuize Medicine, Fukang Biology, Lingnao Technology, Ruijian Biology, Ruimeng Medical, Molecular Intelligence, and Bitai Biology.

Synthetic Capital is a boutique investment bank dedicated to providing in-depth services. It primarily focuses on the healthcare and new energy sectors, with particular expertise and resources in the field of synthetic biology.