Boteng Biopharma Secures RMB 520 Million Series B Funding to Accelerate Global, End-to-End Gene and Cell Therapy CDMO Platform

On August 19, 2022, Porton Biologics Ltd. (hereinafter referred to as "Porton Biologics") announced the completion of its Series B financing, with a total amount of RMB 520 million.This round of financing was led by China Merchants Health, with joint investment from well-known industry institutions including China Merchants Capital, China Merchants Securities Investment, Fosun Health Capital, Guangzhou Yue Min Investment Fund, and SDIC Taikang Trust. Existing shareholders Porton Biologics, SDIC China Merchants, HM CAPITAL, Huashan Ruilian, and Shijie Venture Capital continued to increase their stakes.This round of financing will further advance Porton Biologics’ global expansion, accelerate the construction and operation of commercial manufacturing facilities, and speed up the enhancement of its end-to-end gene and cell therapy (GCT) CDMO platform.

Porton Biologics specializes in CDMO services for gene and cell therapies, rapidly establishing an integrated CDMO platform encompassing plasmids, cell therapy, gene therapy, oncolytic viruses, nucleic acid therapy, and live biotherapeutic products.4000m²Its R&D and production base is operating steadily. To date, strategic collaborations have been signed with multiple clients, and several batches of plasmid, viral vector, and cell therapy projects have been successfully delivered. The 16,000 m² large-scale industrialization facility is scheduled to become operational in the fourth quarter of this year. At that time, Porton Biologics will boast a total area of over 20,000 m² dedicated to gene and cell therapy process development and manufacturing workshops, 10 GMP viral vector production lines, 10 GMP cell therapy production lines, and hundreds of cleanrooms. Porton Biologics will continue to strengthen its capabilities in AAV, oncolytic virus, and mRNA platforms, comprehensively enhancing the production capacity for GMP-grade plasmids, viral vectors, and cell therapy products, thereby empowering the GCT industry. This round of financing will support Porton Biologics in further expanding and refining its domestic and international capability building and capacity layout, acceleratingBuilding a Global, End-to-End Gene and Cell Therapy CDMO Platform, facilitating the development and industrial translation of novel gene and cell therapies.

Dr. Wang Yangzhou, CEO of Porton Biologicsstated, “We sincerely appreciate the high recognition and trust bestowed upon Porton Biologics by China Merchants Health and other new and existing strategic investors. Leveraging our exceptional talent team, unique technological advantages, comprehensive production lines and service facilities, as well as the years of successful experience accumulated by our parent company, Porton Pharma Solutions, Porton Biologics will work hand in hand with customers and partners to achieve more milestones in the field of gene and cell therapy. In the future, we will continue to improve and optimize our management system, enhance our capability to expand both domestic and international markets, and provide excellent CDMO services to global customers through an open, innovative, and quality-reliable platform system, ensuring that effective medicines benefit the public at an earlier stage.” A representative of the investing institutions and the lead investor of this round, China Merchants Health, stated, “From a development perspective, the cell and gene therapy sector holds immense potential for future growth. As a leading domestic CDMO service provider in cell and gene therapy, Porton Biologics boasts an experienced and internationalized elite team. China Merchants Health is delighted to participate in this round of financing for Porton Biologics. We look forward to collaborating with Porton Biologics to explore domestic and overseas markets, serve global cell and gene therapy enterprises, jointly promote the development of the cell and gene therapy industry, and benefit more patients.”

Porton Biologics Ltd., established in December 2018 and based in Suzhou Industrial Park, leverages the strength of its parent company, Chongqing Porton Pharma Science & Technology Co., Ltd. (Stock Code: 300363), to build CDMO platforms for plasmids, cell therapy, gene therapy, oncolytic viruses, nucleic acid therapy, and live biotherapeutic products. The company provides end-to-end services spanning cell bank establishment, process and analytical method development, cGMP manufacturing, and drug product filling and finishing. These services cover various drug development stages, from early research and investigator-initiated trials to Investigational New Drug (IND) applications, registrational clinical trials, and commercial manufacturing, thereby accelerating customers’ drug development and market launch timelines.Focusing on gene and cell therapy, Porton Biologics builds upon the successful experience of Porton Pharma. With a core team of international top-tier professionals, the company adheres to the service principle of “Customer First” and upholds the brand philosophy of “Compliance, Professionalism, Focus, and Open Collaboration.” It continues the parent company’s robust intellectual property protection and project management mechanisms, as well as its comprehensive quality management system. By fully leveraging the core team’s proven expertise in advancing gene and cell therapy products from clinical development to market approval, Porton Biologics delivers high-quality and efficient services to global customers, ensuring that beneficial medicines reach patients sooner.

Chongqing Porton Pharma Technology Co., Ltd. (stock abbreviation: Porton Pharma; stock code: 300363) was established in July 2005. It is dedicated to providing global pharmaceutical companies, new drug R&D institutions, and other clients with customized research and development and customized manufacturing services (CDMO services) for active pharmaceutical ingredients (APIs), formulations, and biologics throughout the entire product lifecycle, from preclinical research to market launch. We have operations and branches in China, the United States, Europe, and other countries and regions, with a global workforce of over 5,000 employees.

China Merchants Health Industry Holdings Co., Ltd. (hereinafter referred to as “China Merchants Health”) is the wholly-owned direct investment platform for the health industry under China Merchants Group. With the vision of being a “value health enabler in the digital era” and the mission of “technology-led, value-driven health,” it is committed to becoming a core force driving transformation in China’s healthcare industry. Adhering to the principles of “hard technology and new business models,” it establishes an elevated industry ecosystem through an “investment + operation” model.

China Merchants Capital specializes in alternative investments and asset management, seeking partnership opportunities in transportation infrastructure and logistics, real estate and related sectors, finance and fintech, TMT, advanced manufacturing, new energy and environmental protection, as well as pharmaceuticals and healthcare. As of the end of 2021, China Merchants Capital managed 52 RMB and foreign currency funds, with total assets under management exceeding RMB 300 billion (USD 48 billion).

China Merchants Securities Investment Co., Ltd. is a wholly-owned alternative investment subsidiary of China Merchants Securities Co., Ltd., with a registered capital of RMB 7.1 billion, primarily engaged in equity investments and financial product investments. Aligned with national policies and industrial layouts, it is committed to providing full-value-chain financial services to its portfolio companies. It has made comprehensive and strategic investments in the healthcare sector, having invested in over 20 leading enterprises across various medical sub-sectors.

Fosun Health Capital, a controlling subsidiary of Fosun Pharma, serves as the management company for its affiliated funds. It manages multiple RMB-denominated funds focused on investing in the healthcare sector, including angel funds for controlling stakes and incubation, venture capital (VC) funds for minority equity investments, and private equity funds targeting growth-stage companies. These underlying funds primarily invest in various sub-sectors of healthcare, such as biopharmaceuticals, high-end medical devices, in vitro diagnostics (IVD), life sciences, and diagnostic and therapeutic technologies, achieving capital appreciation through diverse exit strategies. By leveraging the R&D strengths and industrial layout of the global Fosun ecosystem, Fosun Health Capital provides full-lifecycle empowerment to its portfolio companies, driving their development.

Guangzhou Yue Min Investment Asset Management Co., Ltd. is the sole private equity investment platform controlled by Guangdong Private Investment Co., Ltd. Its key investment sectors include life sciences, new energy, broad consumer goods, and agriculture. Guided by its mission to “identify high-quality enterprises and support their growth,” the firm is committed to providing long-term wealth management services for investors.

Sdic Taikang Trust Co.,Ltd. remains committed to serving the real economy, leveraging its professional investment and research capabilities to cultivate high-quality equity projects. By harnessing its core advantage in integrating industry and finance, the company empowers portfolio enterprises through multi-level and multi-dimensional support. It actively seeks comprehensive, deep cooperation with high-quality institutions across various levels, advancing steadily and swiftly to secure a proactive position for the trust company’s successful transformation.

SDIC Merchants focuses on investments in the advanced manufacturing industry, emphasizing technological innovation and the value of outstanding entrepreneurs and teams. It prioritizes investments in sectors such as intelligent manufacturing, new energy smart vehicles, life sciences, and information and communications technology (ICT), committing to promote the green, digital, and service-oriented development of the manufacturing sector. The team manages a cumulative asset scale exceeding RMB 100 billion, with investors including financial institutions, the National Social Security Fund, and both state-owned and private capital.

HM CAPITAL is a specialized fund focused on healthcare and medical investments. Leveraging the resource ecosystem advantages of Huimei Medical Group and other partners, it invests in the healthcare and medical ecosystem through multi-dimensional and comprehensive approaches. Committed to building a professional investment platform with international vision and local execution capabilities, HM CAPITAL helps early-stage and growth-stage healthcare companies achieve rapid growth through its dual-currency, multi-strategy fund investment model. HM CAPITAL works closely with fast-growing healthcare companies, providing them with comprehensive strategic value-added services and systematic empowerment via a one-stop enablement platform. With a global perspective, it shares its worldwide business network and resource system with outstanding entrepreneurs.

Huashan Ruilian—Hainan Hongde Ruilian Consulting Management Co., Ltd. is a wholly-owned subsidiary of Huashan Ruilian Fund Management Co., Ltd. Huashan Ruilian is a private equity fund manager with cumulative assets under management exceeding RMB 15 billion, primarily investing in the healthcare, high-end manufacturing, and consumer sectors.

Toushijie Venture Capital is a venture capital fund focused on innovative companies in the life and health sector, dedicated to identifying and nurturing revolutionary and disruptive technologies. The fund’s investors include publicly listed companies, local government guidance funds, market-oriented funds of funds, and high-net-worth individuals. By collaborating closely with industry partners, the fund connects its portfolio companies with strategic resources to accelerate their growth and promote the industrialization of their technologies.