Zhixin Haozheng Completes RMB 100 Million Pre-A Financing to Advance Regenerative Islet Therapy for Diabetes

Recently, Suzhou EndoCell Regenerative Medicine Technology Co., Ltd. (“EndoCell”) announced the completion of its Pre-A financing round, raising hundreds of millions of yuan. The round was led by Panlin Capital, with participation from existing shareholder Kaitai Capital, as well as Shanghai Xinhao, Shenzhen Qianhai Tongwei, Liqian Investment, and Tengmai Investment. The proceeds will be primarily used for the construction of the company’s GMP pilot production line, the continued advancement of Investigator-Initiated Trials (IITs), and the expansion of its industrialization team.

EndoCell was established in 2019 under the leadership of Dr. Cheng Xin, a principal investigator at the Center for Excellence in Molecular Cell Science of the Chinese Academy of Sciences. The R&D team he leads possesses extensive technical expertise and rich research and development experience in the fields of directed differentiation of stem cells in vitro and in vitro regeneration of tissues and organs.

EndoCell specializes in the ex vivo regeneration of human tissues and organs, with its lead pipeline focused on regenerative islets, which hold promise for transplant therapy in diabetes characterized by islet damage.

The primary goal of diabetes treatment is to control blood glucose levels, thereby preventing the onset and progression of complications. In most patients with insulin-dependent diabetes, pancreatic islet tissue has been damaged to varying degrees; this pathological feature is present in all individuals with type 1 diabetes and more than one-third of those with type 2 diabetes. Current pharmacological therapies cannot replicate the real-time sensing and regulatory capabilities of human pancreatic islets, making it difficult to achieve precise glycemic control. While these treatments can provide some improvement, they do not offer a cure for diabetes.

In contrast, clinical evidence from thousands of cases both domestically and internationally has demonstrated that following transplantation of donor-derived islet tissue into patients with diabetes, over 70% of recipients can achieve long-term insulin independence, highlighting the significant potential of islet transplantation to cure insulin-dependent diabetes mellitus. However, the clinical widespread adoption of islet transplantation faces bottlenecks due to the severe shortage of donors and the necessity for lifelong immunosuppressive therapy.

To address the severe shortage of donor-derived islets, the EndoCell team has established a technical system for the large-scale in vitro production of regenerative islets using human endoderm stem cells as seeds, thereby overcoming the limitations associated with donor islets. Furthermore, the safety and efficacy of these regenerative islets in humans were preliminarily validated in the first clinical trial initiated in July 2021. The first participant has been completely insulin-independent since the 11th week post-operation, with blood glucose levels restored to the healthy range, achieving a functional cure for diabetes. As the company continues to advance its subsequent pipeline, it holds significant potential for future growth.

EndoCell’s Chief Scientist, Researcher Cheng XinEndoCell stated, “We are committed to developing innovative technologies in regenerative medicine, leveraging ex vivo tissue and organ reconstruction techniques to benefit patients with organ damage. Taking the curative treatment of insulin-dependent diabetes as our breakthrough point, we aim to restore patients’ automatic and precise blood glucose regulation through regenerative islet transplantation, and will expand our regenerative medical therapies for liver injury. EndoCell appreciates the trust and support of our investors and will continue to accelerate the progress of R&D and industrialization.”

Li Yuhui, Founding Managing Partner of Panlin Capitalstated,“Targeting innovative therapies for diabetes indications in China, EndoCell has carved out a unique development path. The company’s core founders possess profound academic expertise in the field of stem cells and have independently developed highly innovative regenerative islet technology, resulting in a robust pipeline portfolio. By establishing external clinical collaborations, the company is effectively advancing the clinical translation of its regenerative islet technology. We look forward to EndoCell becoming a leading enterprise in the field of regenerative islets.”