Shutong Medical Secures Tens of Millions in RMB Funding to Advance CRISPR-Based Diagnostics, Therapeutics, and CRO Services

VCBeat learned at the earliest opportunity that recently,Zhuhai Shutong Medical Technology Co., Ltd.(Shutong Medical) has secured tens of millions of yuan in financing, with Yunfeng Capital and Gree Group’s Industrial Investment Company jointly leading the round, followed by Zhonghui Investment and Shanzhi Investment.

It is reported that the financing proceeds will be used forAdvancing Gene Editing DiagnosticsDiscontinuedAccelerate product commercialization and IND filings for innovative drugs, and establish GMP-compliant R&D laboratories for new drug development, while continuously enhancing the company’s technological innovation capabilities to expand a pipeline of novel drug development with global competitiveness.

From ZFNs to TALENs and then to CRISPR, gene-editing technology has undergone three generations of technological evolution. Since the advent of CRISPR, it has experienced explosive growth worldwide in a very short period, bringing revolutionary breakthroughs to multiple fields.

According to the CRISPR Technology Market Analysis Report released by the U.S. consulting firm Markets and Markets, the market size for CRISPR technology is projected to grow from $546 million in 2017 to $3.9 billion in 2023, representing a compound annual growth rate (CAGR) of 44%.

The applications of CRISPR technology primarily fall into three categories: therapeutics, in vitro diagnostics, and research tools. With the introduction of rapid detection technologies such as SHERLOCK and DETECTR, the potential of CRISPR in the diagnostic field has come to the forefront. CRISPR technology can facilitate the development of more sensitive molecular diagnostic tools for early cancer detection. It has been hailed by the American journal Science as a “next-generation molecular diagnostic technology” and is poised to drive a transformation in the field of in vitro diagnostics.

CRISPR-based diagnostics is a platform-type nucleic acid detection technology capable of rapidly diagnosing any known nucleic acid sequence. Compared with traditional molecular diagnostic techniques, CRISPR-based diagnostics offers significant advantages, including high sensitivity, specificity, rapid turnaround, and low cost. It can be widely applied in various fields such as point-of-care testing (POCT), clinical infection detection, cancer screening, companion diagnostics, and food safety.

Shutong Medical is a platform company with foundational innovative technologies in gene editing,Specializing in CRISPR-based molecular diagnostics and gene-editing therapies.In the field of molecular diagnostics, Shutong Medical has pioneered the development of CRISPR-based molecular diagnostic products, positioning itself at the forefront of this sector in China.

Based on Independent Intellectual Property RightsLiquid-Phase Capture Chip Synthesis Technology, the company successfully developedA diverse portfolio of diagnostic test kits covering early cancer screening, companion diagnostics for oncology, genetic disease diagnosis, and pathogen detection., committed to providing enterprise-level customers with more precise and efficient customized products and services.

As early as 2009, the founding team of Shutong Medical began in-depth research in the field of gene editing. With years of technological accumulation in gene editing tools and drug delivery vectors, combined with experience in the innovative drug industry, the company has established a comprehensive capability for the industrial translation of new drugs, spanning from research and development and regulatory filing to commercialization.

Shutong Medical also operates a postdoctoral research station, has filed more than 20 invention patent applications, and its executives and core personnel have undertaken numerous major national science and technology projects, including the National Major Science and Technology Projects and international cooperation and exchange programs. Currently, the company has established laboratories in Zhuhai and Wuhan, dedicated to the development of gene-editing therapeutics and nanodelivery systems, respectively.

Leveraging its foundational innovation capabilities in CRISPR technology, Shutong Medical has developed a variety of novel CRISPR gene-editing tools with independent intellectual property rights, established safe and efficient delivery systems based on nanomaterials and viruses, and built a drug development pipeline focused primarily on viral clearance and cancer therapy.

Among themHPV Innovative Drug Has Completed Investigator-Initiated Trial (IIT), achieving excellent results in both drug efficacy and safety, and is currently accelerating the IND application process. As one of the first innovative gene therapy drugs for HPV, the product will fill a market gap upon launch, meeting the needs of a large patient population, and holds substantial market potential both domestically and internationally.

Furthermore, Shutong Medical has mastered various precise gene editing technologies (including targeted knockout, point mutation, large-fragment insertion, and overexpression), established a high-throughput sgRNA screening platform, and is the first company in China to provide gene off-target detection services, serving research institutions and enterprises in the field of gene therapy.High-throughput screening for novel drug targets, off-target analysis of gene editing, drug delivery systems, and other gene editing CRO services, has gained widespread recognition from industrial and scientific research clients, and will continue to provide services to these customers.

Currently, Shutong Medical has established collaborative partnerships with multiple renowned universities and innovative pharmaceutical companies, including several prominent emerging enterprises in the field of cell and gene therapy, to jointly promote the development of China's cell and gene therapy industry.

Regarding this round of financing,Lin Huabing, Co-founder and CEO of Shutong Medicalstated: “We sincerely appreciate the attention, recognition, and support from renowned domestic and international biopharmaceutical investment institutions. The successful completion of this financing round will significantly accelerate the company’s development. Upholding our core values of ‘Innovation, Dedication, Integration, and Openness,’ we warmly invite more outstanding industry partners to join us in accelerating the R&D, regulatory filing, and commercial translation of First-in-class drugs. Meanwhile, we will continuously iterate innovative technologies and expand our pipeline to provide novel therapeutic solutions for diseases that currently lack effective clinical treatments, striving to establish the company as a leading innovative enterprise in the field of gene therapy.”

Dr. Li Wengang, Managing Director of Yunfeng CapitalIt stated: “As a revolutionary next-generation technology in life sciences and healthcare, gene editing continues to achieve breakthroughs and reach maturity in the fields of treatment and diagnosis, bringing numerous surprises to the industry. As a platform company with foundational innovations in gene editing technology, Shutong Medical has independently developed next-generation molecular diagnostic products based on CRISPR technology and gene therapy drugs featuring innovative delivery systems, positioning itself at the forefront of the industry. We hope that Shutong Medical will leverage its innovative gene editing platform technology to provide patients with more diagnostic and therapeutic products that address unmet clinical needs.”

Gree Group’s Industrial Investment Company stated:“In recent years, rapidly advancing gene-editing technologies have played an increasingly important role across various therapeutic areas. Shutong has mastered core technologies—including CRISPR gene editing, nanodelivery systems, and off-target effect detection—that are protected by independent intellectual property rights and present high technical barriers. The team features a well-rounded structure with complementary strengths, comprising researchers skilled in scientific inquiry and clinicians with a clear understanding of clinical pain points. Through its investment-driven industrial development strategy, Gree Group’s Industrial Investment Company is facilitating the solid establishment of this project in Zhuhai. This initiative is expected not only to promote the project’s smooth development but also to enhance the city’s industrial influence in advanced medical care.”

Zhonghui Investment stated, Shutong Medical possesses distinct advantages in gene-editing technology, R&D teams, and its development pipeline, positioning it to achieve breakthroughs in HPV gene therapies and end the current lack of effective treatments for HPV infection. Following this investment, Zhonghui Capital will fully support Shutong Medical in strengthening its domestic and overseas presence, helping the company become a global leader in the field of gene therapy.

Yunfeng Capital, established in 2010, is a professional private equity investment firm dedicated to fostering forward-looking enterprises, partnering with them to create long-term value and build a better future. The firm focuses on sectors such as hard technology, enterprise services, green energy, modern agriculture, biotechnology, and consumer goods, working alongside startups to drive technological innovation and sustainable development, thereby facilitating industrial transformation and upgrading.

The industrial investment company focuses on niche sectors within the next-generation information technology and healthcare industries. It has cumulatively invested in over 50 early-stage projects and participated in more than 20 funds, becoming one of the most active state-owned angel investment institutions in Guangdong Province in terms of both deal volume and investment activity. The industrial investment funds under its management have become the most renowned and influential district/county-level government guidance funds in China, having received over 40 awards from authoritative organizations, including Zero2IPO Group’s “Top 30 Chinese Government Guidance Funds in 2020” and Financing China’s “Top 30 Best Chinese Government Industrial Guidance Funds for 2020–2021.”

Zhonghui Investment is a leading innovation investment platform in the Greater Bay Area. Its Guangdong-Hong Kong-Macao Greater Bay Area Life and Health Industry Zone has attracted and invested in dozens of innovative medical and healthcare enterprises.