HuaWei HengYuan Completes Tens of Millions RMB Pre-A+ Financing to Accelerate Clinical Filing of Immune-Privileged Pipeline

VBInsight learned at the earliest opportunity that, recently,Huawei Hengyuan (Beijing) Biomedical Technology Co., Ltd. (hereinafter referred to as “Huawei Hengyuan”) has completed a Pre-A+ financing round worth tens of millions of yuan, led by Danlu Capital, with participation from new investors including Ruisheng Investment and Yuanhe Capital. It is reported that the funds raised in this round will be primarily used for safety validation, process development, and clinical trial applications for Huawei Hengyuan’s core pipeline, as well as for the expansion of production facilities and talent recruitment in subsequent stages.

Huawei Hengyuan was established in late 2018 as a biopharmaceutical company dedicated to building a novel platform for creating artificial immune-privileged microenvironments and facilitating their clinical translation, with the aim of addressing immune rejection and male infertility in the field of regenerative medicine. Since its inception, Huawei Hengyuan has completed three rounds of financing. Previously, the company had also gained recognition from investors such as Shuimu Ventures, TusStar Venture Capital, Hua’an Jingyin, and Jiuhe Ventures.

“This technical patent is the result of your research during your doctoral studies. If you have the opportunity to translate it into practice and successfully apply it in clinical settings, the sense of achievement it brings will be distinct from that derived from other successes in your life.”

It was precisely these words from his mentor, Professor Ji Jiakui, that led Dr. Liang Jianlin to decisively embark on an entrepreneurial path after graduation. However, entrepreneurship is by no means easy; the success of Huawei Hengyuan (Beijing) Biomedical Technology Co., Ltd. to date is inextricably linked to three key factors: “harmonious human relations, favorable timing, and advantageous location.”

On “human harmony,”Professor Ji Jiakui and Dr. Liang Jianlin exemplify the typical university-based faculty-student entrepreneurial partnership. Prior to establishing Huawei Hengyuan, the two had accumulated years of collaborative experience in scientific research projects.

As the founder of Huawei Hengyuan, Dr. Liang is the inventor of the company’s core patented technology for inducing human immune-privileged cells and has nearly a decade of research experience in human stem cells, reproductive development, and immune privilege mechanisms. As the company’s Chief Scientist, Professor Ji is not only an inventor of the human immune-privileged cell induction technology but also a renowned scientist in the field of stem cells and regenerative medicine. He currently serves as Associate Chair of the Department of Basic Medical Sciences at Tsinghua University School of Medicine and holds a tenured professorship. He has previously served as an advisor to the National Natural Science Foundation of China’s Major Projects and as a grant reviewer for the UK Medical Research Council, and has published dozens of SCI-indexed papers.

In terms of “timing,”In addition to the enlightening words from Professor Ji, Dr. Liang Jianlin chose to embark on an entrepreneurial journey because his scientific research achievements had reached maturity upon his graduation. Furthermore, the development of China’s cell and gene therapy (CGT) industry was thriving during those years.

Dr. Liang frankly stated, “Such a critical window for translation is fleeting; if the technology is not translated within two years, it may fall behind. However, handing it over to others for translation would make it difficult to persuade them to fully support a new technology.” Considering various factors, Dr. Liang decided to take the lead in advancing this technology himself.

Huawei Hengyuan’s advantages in terms of “geographic positioning” are also evident: the company is deeply rooted in the industrial ecosystem of Tsinghua University.

Compared to other startups, Huawei Hengyuan was backed by Tsinghua University from its inception, leveraging the venue and equipment resources, policy support, industry connections, and talent pool provided by a top-tier domestic university. At the time of founding, both founders of Huawei Hengyuan were scientists with limited mature experience in corporate operations and commercialization. With the assistance of the Technology Transfer Institute of Tsinghua University and the Industrial Research Institute of Tsinghua University, the company established partnerships with Tsinghua-affiliated funds such as Shuimu Ventures through industry matchmaking at an early stage, and connected with industry professionals and investors via these investment institutions. During its development, the company further received empowerment from industrial resources such as TusStar and the Global Health Industry Innovation Center.

To date, Huawei Hengyuan has built a comprehensive talent pool covering the entire value chain, including front-end scientific research and technology development, product process engineering, clinical translation, corporate operations, and quality control.

Backed by both talent and capital, Huawei Hengyuan targets the prevalent pain points in regenerative medicine: immune rejection and male infertility.

Immune rejection is the primary obstacle facing cell and tissue transplantation therapies, and it is the leading cause of failure in allogeneic transplants of pancreatic islet cells, hepatocytes, and immune cells. Apart from HLA matching, there are currently no effective solutions available. Immune rejection can also trigger autoimmune diseases, such as chronic underlying conditions including rheumatoid arthritis and goiter.

To address this pain point, Huawei Hengyuan has developed a human-derived immune-privileged cell induction technology based on iPSCs.

Testicular Sertoli cells are a specialized type of gonadal somatic cell with immune privilege and reproductive support capabilities, effectively addressing the prevalent industry challenges of immune rejection and male infertility. Clinically, Sertoli cells can serve as immune-privileged carriers to protect allogeneic transplanted cells, bypassing HLA matching restrictions, expanding the donor pool for transplantation, or repairing the microenvironment in sites of immune dysregulation. Furthermore, these cells can be utilized in the treatment of severe azoospermia by restoring the damaged spermatogenic niche.

This technology has achieved, for the first time, the in vitro induction of human immune-privileged cells. With strong versatility, it can be applied to the development of technologies and therapeutics for a wide range of diseases. Building on its core technologies, Huawei Hengyuan has successfully established two platforms: a pluripotent stem cell editing and directed differentiation platform, and a universal carrier platform for protecting immune-privileged cell transplantation.

Leveraging a versatile platform, the company has currently established its presence in three major therapeutic areas: autoimmune diseases, male assisted reproduction, and cell transplantation therapy. In the future,Huawei Hengyuan will not only focus on the R&D and industrialization of cell therapy products, but also leverage the universality of Sertoli cells to help more CGT pharmaceutical companies in the industry establish a full-process quality control evaluation system, thereby breaking through the bottleneck of immune rejection.

Currently, Huawei Hengyuan has three core pipelines. The rheumatoid arthritis pipeline, which is progressing the fastest, is expected to enter the clinical trial filing stage soon. The cell transplantation pipeline has completed the proof-of-concept for the diabetes project and achieved favorable results in animal studies. For the male azoospermia pipeline, the company has developed a prototype of the upstream test kit and completed its classification determination, and is currently preparing for the registration and production of the related IVD products.

To advance the industrialization of its pipeline, Huawei Hengyuan currently operates a 300-square-meter R&D and translational laboratory, equipped with end-to-end cellular process equipment—including fluorescence microscopes, centrifuges, incubators, and biosafety cabinets—and has established a comprehensive quality management system. Following this financing round, the company plans to construct a 2,000-square-meter production facility.

In terms of future market accessibility, Huawei Hengyuan also possesses inherent advantages: its products offer broad price affordability.

The pricing of CGT products is indeed an issue that cannot be overlooked at present. In terms of cost reduction, Huawei Hengyuan adopts a universal production approach. “Why are we able to achieve universal production? This is closely related to the characteristics of Sertoli cells. Sertoli cells inherently possess immune privilege, so their cell therapy products do not distinguish between autologous and allogeneic types, making the manufacturing process relatively simple and easier to standardize.”

We look forward to Huawei Hengyuan focusing on the development of novel cell-based drugs, expanding its product portfolio across more indications centered on immune privilege technology, and collaborating with industry partners to overcome bottlenecks in regenerative medicine, thereby venturing into broader blue-ocean opportunities in the pharmaceutical sector.

Liang Jianlin, CEO and Co-founder of Huawei Hengyuan, stated:This round of financing was essentially concluded in the first half of the year. At a time when the capital market is experiencing a winter and the biopharmaceutical sector faces widespread uncertainty, Huawei Hengyuan has successfully completed its Pre-A+ financing round and advanced its global layout. This achievement is attributable to the new and existing shareholders’ recognition of the uniqueness and platform potential of the company’s disruptive technologies, the execution capability and innovative strength of its stable team, as well as the progress of its core pipeline and R&D capabilities. Hereby, we extend our sincere gratitude to both new and existing shareholders for their continued support.

“Only when the sea rages do heroes reveal their true colors; only when green mountains stand tall do lofty aspirations remain unshaken.” As a cellular therapy company, particularly one deeply engaged in the iPSC field and possessing proprietary immune evasion technology, Huawei Hengyuan adheres to the bottom line of “safety and efficacy.” Throughout the organization, we always approach product development with humility and reverence. We rigorously optimize process modules and thoroughly elucidate mechanisms of action to ensure product stability and safety. Huawei Hengyuan firmly believes that only products manufactured in this manner are truly responsible to patients, and only enterprises committed to such standards have a promising future.

Currently, Huawei Hengyuan has gradually established a comprehensive production and quality management system and obtained corresponding qualifications. Following its selection as a Zhongguancun Disruptive Technology Project in 2020, the company successfully secured approval this year to establish a Postdoctoral Research Station accredited by the Ministry of Human Resources and Social Security. In the future, Huawei Hengyuan will focus on its proprietary disruptive platform technology of human-derived immune privilege, continuously advancing pipeline product development in the fields of transplant rejection and male infertility, while simultaneously building a globally licensable platform for immune-privileged transplant protection vectors.

Lu Qinchao, Partner at Danlu Capital, stated:Huawei Hengyuan has mastered exclusive technology for the in vitro induction of human Sertoli cells. Sertoli cells can serve not only as ideal protective carriers for transplanted cells and tissues, helping to repair the microenvironment at sites of immune dysregulation, but also find application in the treatment of severe non-obstructive azoospermia in men. Therefore, the company’s core technologies hold significant market potential across multiple disease areas. Professor Ji Jiakui is a renowned expert in the fields of stem cell differentiation and germ cells. His team has been deeply engaged in this field for many years and has achieved breakthrough results in several key pipelines. We are delighted to collaborate with this outstanding team and hope to support Huawei Hengyuan in becoming an internationally leading biopharmaceutical company.

Ling Ling, Investment Director at Ruisheng Investment, stated:The cell and gene therapy (CGT) industry is a key赛道 for China’s biopharmaceutical sector to achieve leapfrog development. iPSC-based cell therapy platform technologies hold promise for delivering breakthrough therapeutic efficacy in medical markets where effective treatments are currently lacking. The team at Huawei Hengyuan has formulated a clear corporate development strategy for its cell therapy business. Leveraging its internationally pioneering, fully independent intellectual property rights in human immune-privileged cell technology, the company’s product pipeline—including cell injections for rheumatoid arthritis, immune-privileged artificial pancreas systems, and assisted reproductive testing systems—is progressing as expected. Rising Investment will continue to rely on the Inno.EcoS service ecosystem of Zhongguancun Dongsheng Science Park, building an industrial innovation service system centered on Huawei Hengyuan and its talent pool. Starting from enterprise needs, it will continuously improve the corporate growth ecosystem, streamline the full lifecycle service chain, and provide tailored services to support the company’s growth and maturity.

Zhang Jianyao, Investment Director at Yuanhe Capital, stated:Since the advent of modern medicine, the entire industry has been plagued by a critical contradiction: the surging demand for extracorporeal transplantation due to organ and cellular aging, pathological changes, and damage, versus the severe shortage of donors. Regenerative medicine not only holds promise for resolving the donor shortage but also significantly enhances the utilization efficiency of donated organs, offering immeasurable social and commercial value. Huawei Hengyuan’s proprietary technology for inducing human immune-privileged cells enables their large-scale production and application in the fields of autoimmune diseases and cell transplantation, thereby addressing the challenge of immune rejection in cell transplantation and presenting broad application prospects. Huawei Hengyuan’s technological prowess in the field of immune-privileged cells is widely recognized; its extensive application potential and high technical barriers constitute significant competitive advantages.

Danlu Capital is a venture capital firm focused on the healthcare and medical industry. Co-founded in early 2018 by Lu Qinchao, former Partner at Sequoia Capital China, and Su Zhenbo, former Managing Partner of Fenxiang Investment Management, Danlu Capital has been deeply committed to the early-stage healthcare sector. It has systematically invested across multiple domains, including innovative medical technologies such as high-value consumables, in vitro diagnostic reagents, consumer healthcare, and digital health, as well as innovative drugs and novel medical services. Dedicated to delivering strong returns to its investors, Danlu Capital aims to leverage capital to accelerate the R&D and commercialization of modern medical and pharmaceutical technologies, thereby improving public health outcomes. Its vision is to become a trusted, enduring, and premier healthcare fund management company. “Climbing upward, Danlu is always on the journey.” Serving as the “shoulders” for entrepreneurs and investors alike, Danlu Capital continues to deepen its expertise in innovative medical technologies, innovative drugs, and medical services, striving to become a trusted and highly influential healthcare venture capital institution that climbs to the pinnacle of success alongside its portfolio founders.

Yuanhe Capital, established in 2016, is an early-stage venture capital firm operating both as a fund of funds (FOF) and a direct investment fund. The sub-funds invested in by its FOF cover stages from seed to Series B. Leveraging the FOF as its platform and early-stage angel investment as its entry point, Yuanhe Capital adheres to the philosophy of “Partnering with Excellence to Create a Better Future.” As of 2022, the firm had launched three FOFs and two direct investment funds, committing itself to building an equity investment industry chain ecosystem and actively exploring the optimal path for integrating “mass entrepreneurship and innovation” with “industrial development.”The company primarily serves two ends of the spectrum. On the front end, it supports entrepreneurial projects. By collaborating with outstanding fund institutions, Yuanhe Capital pools the wealth, extensive experience, and accumulated resources of seasoned entrepreneurs to provide multifaceted support for the healthy growth of startups. It aims to establish a robust early- to mid-stage venture capital ecosystem, continuously innovate, enhance user experience, foster great technological innovation companies, and contribute to the national initiative of building an “innovation-oriented country.” On the back end, it serves industrial capital, with a core focus on listed companies. Yuanhe Capital helps industrial capital identify opportunities for industrial synergy, provides value-added services, facilitates industrial transformation and upgrading through capital infusion, and achieves solid returns on equity investments.

Leveraging the platform resources and industrial agglomeration advantages of Zhongguancun Dongsheng Science Park, Ruisheng Investment has established a full-chain investment system. In the healthcare sector, building upon the health industry layout of Dongsheng Science Park and its externally invested professional funds in biopharmaceuticals and medical devices, the firm focuses on high-value, high-growth medical technologies and products that possess competitive barriers or scarcity within the industry.