Kactus Biosystems Completes Series B Financing to Strengthen Core Competitiveness in Upstream Biopharmaceutical Key Enzyme and Protein Reagents
VCBeat (WeChat ID: vcbeat) learned that on October 20, 2022, Kactus Biosystems announced the completion of its Series B financing round, raising nearly RMB 200 million. The round was led by Lianxin Capital, with participation from Lingang Lanwan Capital, Guofang Capital, and a renowned multinational life sciences industry group.
Kactus Biosystems (Shanghai) Co., Ltd. (Kactus Biosystems), established in March 2018, is a high-tech innovation-driven company specializing in the research and development of target proteins and GMP-grade enzyme raw materials. It primarily focuses on the antibody drug discovery and cell and gene therapy markets. Kactus Biosystems’ proprietary SAMS platform for the R&D and manufacturing of highly active proteases provides structure-based functional target proteins and GMP-grade protease raw materials required for cell and gene therapies as well as mRNA vaccines.
Over the past four years since its establishment, Kactus Biosystems’ proprietary recombinant protease R&D platform, SAMS (Structure Aided Design and Multiplex Screening), has become a well-known protein brand in the field of antibody drug development, leveraging its distinctive flagship products such as VLP superantigens, MHC multimer complexes, full-length Claudin 18.2 transmembrane proteins, and GPCR series proteins. In the gene therapy sector, Kactus’s GMP-grade gene-editing enzymes and mRNA vaccine raw material enzymes have established deep strategic collaborations with leading CGT clients in the industry, with its products advancing to the clinical trial application stage.
Since its inception, Kactus Biosystems has secured multiple rounds of institutional financing, including a Pre-A round in January 2019, a Series A round in October 2020, a Series A+ round in August 2021, and a strategic investment round in February 2022. Participating investors include DeHui Capital, SDIC Venture Capital Fund, Sherpa Capital, Bencao Capital, Taifu Capital, as well as industrial partners Biocytogen and Abogen Biosciences. Kactus Biosystems primarily operates in Shanghai and Boston, USA, with a team of nearly 250 professionals spanning R&D, manufacturing, quality control, marketing, and support functions. The company has established a 5,000-square-meter R&D, production, and quality control center in the Pujiang High-Tech Park in Shanghai, and concurrently built a GMP-grade protease industrialization base covering over 10,000 square meters in the Lingang New Area of Shanghai, providing significant support for its internationalization strategy. Despite the dual challenges posed by the Shanghai epidemic outbreak and industry correction this year, Kactus Biosystems has continued to achieve rapid business growth, driven by its strong product capabilities.
Mr. Wang Gang, Founder and CEO of Kactus Biosystems, stated“We are deeply honored that Kactus Biosystems has received participation and recognition from renowned funds during this period of industry adjustment, helping us accelerate the establishment of core competitiveness in the global upstream biopharmaceutical supply chain. Since our founding in 2018, Kactus Biosystems has been committed to building product differentiation and core competitiveness, addressing the unmet needs of the rapidly evolving upstream biopharmaceutical industry. With the resource support from this round of financing, we will continue to strive, maintain strategic patience, and focus on the protease sector. Based on deep insights into customer needs, we will increase R&D investment and upgrade our production and quality systems to navigate industry cycles and establish Kactus as a world-class life sciences product brand.”
Mr. Cai Lei, Partner at Lianxin Capital, statedAs a leading domestic brand in recombinant proteins and CGT enzymes, Kactus Biosystems boasts industry-leading R&D capabilities and manufacturing capacity. With a deep understanding of industry needs, the company has established a comprehensive product portfolio. In just over four years since its inception, Kactus Biosystems has built an outstanding reputation in the challenging fields of difficult-to-express recombinant proteins and CGT enzymes, accumulating a large base of prominent downstream clients. We look forward to Kactus Biosystems, as a top-tier domestic supplier of upstream life science raw materials, continuing to develop high-quality products urgently needed by downstream users, breaking through the “chokehold” monopolies in certain upstream material sectors, and safeguarding the robust growth of China’s biopharmaceutical industry.
Ms. Qu Xia, General Manager of Lingang Lanwan Capital, stated: Kactus Biosystems possesses innovative R&D capabilities for recombinant proteases, along with customer service capabilities characterized by rapid feedback and quick iteration. Its diverse portfolio of protease products addresses key challenges in the localization of the biopharmaceutical industry’s supply chain. Meanwhile, Kactus Biosystems is actively expanding into overseas markets to build a life sciences product brand with international influence. In Lingang New Area’s Life Science Bay, Kactus Biosystems has established a production system featuring comprehensive digital quality management that complies with Good Manufacturing Practice (GMP) requirements. Lingang Lanwan Capital, which focuses on niche sectors including biotechnology and pharmaceuticals, medical devices, healthcare services, and AI-driven biopharmaceuticals, will provide Kactus Biosystems with further all-around support and services.
Mr. Sun Min, Managing Partner of Guofang Capital, stated: The growth of the biopharmaceutical industry has driven demand for upstream protein raw materials. In recent years, with the development of cell and gene therapy (CGT) and nucleic acid therapeutics, requirements for the variety and quality control of upstream protein raw materials have continuously increased, and regulatory review thresholds have also risen. Companies with solid technical capabilities that can consistently develop new and high-quality products will stand out. Kactus Biosystems boasts a strong technical team, has made forward-looking strategic layouts in the field of innovative biotechnology, and demonstrates outstanding execution capability. We believe that Kactus Biosystems is a company capable of continuously developing high-quality protein products. Guofang Capital hopes to accompany the company throughout its growth journey, helping it become larger and stronger.
Kactus Biosystems, established in early 2018, is a protease raw material company focused on the upstream sector of biopharmaceuticals and driven by independent innovation. Leveraging its proprietary protein R&D platform, SAMSTM, Kactus Biosystems entered the antibody drug market from the field of challenging transmembrane proteins, addressing unmet market needs.
In the field of gene therapy, Kactus Biosystems provides the only domestically produced GMP-grade Cas9 enzyme that currently meets the clinical needs of gene editing, versatile nucleases for the AAV and vaccine industries, GMP-grade cytokines for cell therapy, and high-yield T7 transcription and capping enzymes for mRNA vaccine production.
Kactus Biosystems holds the status of a National High-Tech Enterprise and the title of Shanghai’s “Specialized, Refined, Differential, and Innovative” Enterprise, along with ISO 13485:2016 certification for medical device quality management systems. The company operates a 5,000-square-meter R&D and production center in the Caohejing Development Zone, Pujiang Town, Shanghai, supported by a technical team of 250 professionals. Additionally, it has established a GMP-grade protease industrialization base spanning over 10,000 square meters in the Lingang New Area of Shanghai.
Lianxin Capital, established in August 2008, is a fund management company specializing in private equity and venture capital. Currently, Lianxin Capital manages multiple funds with total assets under management exceeding RMB 10 billion. Its primary investment focus spans sectors such as TMT and healthcare, covering all stages from early-stage to growth-stage and mature companies. To date, it has completed over 100 investments, with more than 30 portfolio companies having achieved IPOs or listings both domestically and internationally, nurturing a cohort of industry leaders. Guided by the mission of “growing alongside great enterprises” and backed by deep industry expertise, Lianxin Capital has become the preferred partner for both investors and portfolio companies.
Lingang Lanwan Capital is an industrial investment platform under the Lingang Group, specializing in the healthcare sector. Based in the Life Blue Bay specialized park within the Lingang New Area, the platform extends its reach across China and globally. It is committed to optimizing the healthcare industry ecosystem, integrating superior resources, and empowering high-quality enterprises with sustained support for their healthy development. By doing so, it aims to establish a pioneering zone for the precision medicine industry with global influence and build a world-class hub for industrial development.
Guofang Capital is a venture capital firm dedicated to realizing technological value by focusing on deep tech. Adhering to the spirit of “dancing with technology, advancing with the times,” Guofang Capital firmly believes in driving innovation through funding and linking innovation with industrial chains. By strategically investing in specialized VC funds, industry chain funds, and outstanding technology enterprises, Guofang focuses on three key frontier sectors: biomedicine, artificial intelligence, and the Internet of Things (IoT). It leads broader social capital to build an ecosystem that integrates resources from governments, industrial parks, finance, and industry, thereby supporting the growth of innovative enterprises and continuously enhancing the industrial chain ecosystem.